Updated Mineral Resource Statement

Black Dragon Gold completed an updated MRE in Q4 2018 for its Salave Gold Project. Resources (M, I & I) now totals 1.6 Moz Au with average grades of 4.27 g/t Au.

Updated NI 43-101 (Technical Report for the Salave Gold Project - Updated Mineral Resource (October 2018))

The new Salave Mineral Resource Estimate (“MRE”) completed in by CSA Global in 2018 yielded an increase in average gold grade and a 28% increase in gold content from the 944,000 combined Measured and Indicated ounces defined in the Company’s last updated resource estimate at the same cut-off grade of 2.0 g/t Au, released in February, 2017.

The MRE has been classified and reported in accordance with JORC and the CIM Code. The MRE has been reported at a cut-off of 2 g/t Au and is current to 31 October 2018. The 2018 MRE includes 2,217 metres of core drilling completed in 2018 and is based on a revised interpretation of the Salave Deposit by CSA Global. The updated combined Measured and Indicated Mineral Resource now totals 8.21 million tonnes grading 4.58 g/t Au, containing 1.21 million ounces of gold, plus inferred resources totalling 3.12 million tonnes grading 3.47 g/t Au, containing 348,000 ounces of gold.

Table 1: Salave MRE by JORC classification, May 2018

Notes:

  • Rounding may cause apparent discrepancies
  • The Mineral Resource estimate was conducted by CSA Global of Perth Australia (“CSA”) with an effective date of October 22, 2018
  • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  • The quantity and grade of reported Inferred resources in this estimation are conceptual in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured resource.
  • It is uncertain if further exploration will result in upgrading them to an Indicated or Measured resource category, although it is reasonably expected that the majority of the Inferred resources could be upgraded to Indicated Mineral Resources with further exploration
  • The Mineral Resource is reported at cut-off grade of 2.0 g/t Au and was chosen to capture mineralization that is potentially amenable to underground mining. The reported resources occur in bodies of sufficient size and continuity to meet the requirement of having reasonable prospects for eventual economic extraction. Due to the necessity to maintain a surficial crown pillar in a potential underground operation, all material from the present surface to a depth of 40 meters is not included in the Salave resources.