News

2018

FINAL 2018 DRILL RESULTS CONTINUE TO CONFIRM EXPANSION POTENTIAL FOR SALAVE GOLD RESOURCE

September 24, 2018

FINAL 2018 DRILL RESULTS CONTINUE TO CONFIRM EXPANSION POTENTIAL FOR SALAVE GOLD RESOUR

  • High-grade gold intersections confirm and extend the current resource model, including best results of:

  • BD18-06
    • 4.8m @ 16.3 g/t Au from 230.7m
    • 14.0m @ 10.0 g/t Au from 209.9m, including
      • 4.1 @ 24.5 g/t Au from 219.8m
  • BD18-07
    • 23.3m @ 29.1 g/t Au from 164.8m including,
      • 9.1m @ 65.1 g/t Au from 171.8m and,
      • 3.4m @ 148.0 g/t Au from 176m
  • Select mineralised intersections in holes BD18-06 and BD-18-07 are outside of the limits of the current mineral resource model.


Vancouver, BC – 10 September 2018 – Black Dragon Gold Corp. (ASX: BDG, TSX-V: BDG) (“Black Dragon” or the“Company”)is pleased to announce the assay results from the final two drill holes of the Company’s 2018 infill and definition drilling campaign at its wholly owned Salave Gold Project in the Asturias region in northern Spain (“Salave”or the “Project”).The results from drill holes BD18-06 and 07 are significant because they have intersected high-grade mineralisation within and beyond the constraints of the current Mineral Resource model. This continues to confirm the potential for significant exploration upside to Salave’s existing measured and indicated resource of 6.52 million tonnes at 4.51 g/t Au, for 944,000 ounces of gold (see February 2, 2017 news release).The 2018 drill campaign has not only been successful in achieving the Company’s main objective of confirming the extent and continuity of high-grade gold mineralisation at Salave, the 2018 drill programme has also extended the limits of mineralization defined by the current Mineral Resource model.

The Company anticipates that the results from the 2018 drill programme will have a positive impact on the next Mineral Resource estimate update, which is due for completion in early Q4 2018. The updated Mineral Resource update will be the basis a Preliminary Economic Assessment (“PEA”) focusing on a new underground mine plan also planned for completion by the end of 2018.

CEO and Managing Director of Black Dragon, Paul Cronin, commented:

I am very pleased with the outcome of the 2018 drill programme at Salave. The drill hole results announced today and previously support our belief that not only the Salave deposit is open to expansion, but there are also opportunities to discover new and expand existing zones of very high grade gold mineralization within and outside of the existing resource model that will become the focus of our PEA and defining an underground mine target.”

“We will immediately proceed to compile the results of the 2018 drilling and generate a revised interpretation based on these new results. The new interpretation will be the foundation of an updated Mineral Resource estimate, expected in early Q4."

Select results from diamond drill holes BD18-06 and BD18-07 include:

Mineralised intervals were selected to achieve a minimum grade consistent with the Mineral Resource grades deemed amenable to underground mining methods in the 2017 MDA Mineral Resource estimate. The selected intervals included above were based on 2.5 g/t Au cut-off grade, 2 metres minimum interval length and maximum continuous internal waste interval of 2 metres. Reported mineralised intervals may not represent true widths. Collar locations were surveyed in UTM coordinates based on ERTS89 datum, Zone 29N – Please see Appendix 1.

The 2018 drill campaign consisted of seven diamond holes (BD18-01 to 07) totalling 2,117 metres, targetingthe north-west quadrant of the current resource model and was designed to confirm the presence of steep structures associated with high-grade gold mineralisation and to test for possible lateral extensions of flat to shallow west-dipping stacked lenses of mineralisation defined in the Company’s current Mineral Resource model. The Company will be utilising the new information from the 2018 drill holes to update the current Salave Mineral Resource estimate, which will be used as the basis for a PEA and ongoing feasibility study of an underground mine at Salave. Previously released drill results from holes BD18-01 to BD18-05 (see April 14, 2018, and September 11 2018 news releases for full details):

Mineralised intervals were selected to achieve a minimum grade consistent with the Mineral Resource grades deemed amenable to underground mining methods in the 2017 MDA Mineral Resource estimate. The selected intervals included above were based on 2.5 g/t Au cut-off grade, 2 metres minimum interval length and maximum internal waste interval of 2 metres. True widths are unknown. Collar locations are UTM coordinate based on ERTS89 datum, Zone 29N – Please see Appendix 1.

The Salave Deposit consists of a series of stacked horizontal to shallow west-dipping lenses of mineralisation associated with altered (advanced sercitisation and albitisation) fracture zones within the Salave granodiorite. The Salave Granodiorite is a large north-west trending, approximately 500m wide, steeply dipping sill-like intrusive body overlain by metasediments on the western flank of the deposit. The contact between the metasediments and the Salave granodiorite trends approximately north-east and dips gently to the north-west,

approximately parallel to the dip of the regional thrust faulting and the Salave Deposit. The mineralised lenses that form the Salave Deposit pinch and swell and at time these lenses appear to coalesce or are connected by steeper structures, which may act as feeders to the mineralisation within the shallow dipping lenses. At depth, the mineralised lenses appear to offset and step down to the west and collectively form a tabular zone immediately below and roughly parallel to the contact with the overlying metasediments. Results from the 2018 drilling have confirmed and infilled areas of gold mineralisation within the previous resource model and have intersected high-grade intervals of gold mineralisation outside of the current resource model, at depth and down dip to the west.

The most recent NI 43-101 mineral resource estimate of the Salave deposit, originally completed by Mine Development Associates (“MDA”) in 2014 and updated in January 2017 (see February 2, 2017 news release), modelled sub-vertical mineralized structures in addition to the broad lenses of shallow dipping mineralisation and recommended further drilling to understand and define the orientation of these vertical features. To date only a limited amount of angled drill holes have been completed. The 2018 drilling consisted entirely of angled holes at various orientations and was logged using oriented drill core. This information will be used to complete a detailed structural study in Q4 2018 that will assist the resources modelling process and enhance our understanding of the structural setting that is controlling the distribution of high-grade gold zones within the Salave deposit.

The objective of the 2018 drilling programme therefore was designed to accomplish the following:

  • Confirm the orientation of high grade gold mineralisation intersected in numerous drill holes during previous diamond drilling programmes.
  • Provide information on the orientation of structures that potentially control the orientation of gold mineralisation at Salave.
  • Confirm the gold tenor and intersection lengths of previous diamond drill holes.
  • Provide additional structural and geotechnical data for ongoing project development studies.

METHODOLOGY AND QA/QC

The analytical work reported on herein was performed by ALS Laboratory Group. SL (“ALS”) in, Spain and Ireland. ALS is an ISO 17025-2005 accredited and internationally recognised analytical services provider. All drill core was logged and sampled at its core storage facility in Tapia de Casariego. Sample intervals varied from 0.85 to 2.05 metres and all core was split and one half quartered by saw and quarter core samples were shipped to ALS in Seville. Samples were crushed and pulverised at ALS and a 50 gm sample was analysed for gold by Fire Assay method and AA finish. In cases where Fire Assay and AA finish gold results exceeded 100 g/t, a second larger split of the original pulp was re analysed under manual supervision using small batch precision Fire Assay and gravimetric finish on different size fraction splits at ALS Global in North Vancouver, Canada. Samples were also analysed by four acid ICP-AES for arsenic, antimony and sulphur. The Company follows industry standard procedures for the work carried out on the Salave Gold Project with a quality assurance/quality control (QA/QC) program. Blank, duplicate and standard samples were inserted into the sample sequence sent to the laboratory for analysis. Black Dragon detected no significant QA/QC issues during review of the data.

For further information, please contact:

Paul Cronin

CEO & Managing Director

P: +44 20 79934077

E: paul.cronin@blackdragongold.com

Peter Klinger

Cannings Purple

P: +61 (0)411 251 540

E: pklinger@canningspurple.com.au

QUALIFIED PERSONS

Santiago Gonzales Nistal, EurGeol., a Qualified Person as defined by National Instrument 43-101 and consultant to Black Dragon, supervised the diamond drilling program at the Salave Gold Project and reviewed, verified and compiled the data reported herein. Douglas Turnbull, P.Geo., a Qualified Person as defined by National Instrument 43-101 and consultant to Black Dragon has reviewed and approved the scientific and technical disclosure in this news release.

BLACK DRAGON GOLD CORP.
1000 Cathedral Place
925 West Georgia Street
Vancouver, BC V6C 3L2, Canada,

T- +44 20 79934077 F- +44 20 71128814

info@blackdragongold.com
www.blackdragongold.com

ABOUT BLACK DRAGON GOLD

Black Dragon Gold Corp. (ASX/TSXV: BDG) is the 100% owner of one of the largest undeveloped gold projects in Europe, the Salave project. Salave is situated in the north of Spain in the province of Asturias. The Salave project has measured and indicated resources totalling 6.52 million Tonnes grading 4.51 g/t Au containing 944,000 ounces of gold at a 2.0 g/t cutoff grade and gold price of USD$1,100/ounce. For more information on the Salave project, please refer to the technical report "Amended Technical Report on the Salave Gold Project, Asturias Region, Spain" dated October 7, 2016, as amended January 31, 2017, located on the Company’s website at www.blackdragongold.comand filed on SEDAR. In addition to the current Mineral Resource, historical exploration work suggests there is potential for further mineralisation within Black Dragon's landholdings.

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