Salave Gold

Project Overview

Black Dragon Gold Corp. (TSX-V:BDG, FWB: BCD) has implemented a strategic structural changes including a new Board of Directors and management team to aid in the development of its 100% owned Salave Gold Project in Asturias (northern Spain).

The project is comprised of five mining concessions and associated extensions covering 662 hectares and an investigation permit covering another 2765 hectares. Drilling to date totals 67,508m in 440 holes (245 diamond drill holes) and metallurgical tests indicate gold recoveries over 90% are possible.

Revitalization and Value Recovery Plan


Complete the refresh and renewal, name changes, management changes, staff and support changes and appoint subsidiary board of directors
Complete fundraising round for a total of USD 8 – 10 million
Stabilise and de-escalate in country relationships
Formally re-engage with federal, provincial and local authorities to progress permitting collaboratively
Engage with residents and stakeholders in Tapia and other local communities
Make necessary modifications to design, strategy and plan as a result of engagement
Collate and finalise feasibility documents and engage any further studies required
Engage TetraTech to draft bankable feasibility study


Finalise permitting
Publish feasibility study
Complete detailed design and tenders
Ramp up and train local production team
Begin construction
Complete Construction


Shipment of concentrate

Location and Infrastructure

Spain has a long history of mining, particularly in northern Spain, as well as strong support industries. As a political and economically stable member of the EU, civil law jurisdiction reigns which makes it good for business, with an educated labour force and excellent heavy engineering and mining skills.

There is great infrastructure in and around the project, making this location ideal.

  • Local towns have capacity to supply services and skilled workers
  • Sealed road access to the site for staff and equipment
  • Capital of the province, Ovideo is nearby and has an airport
  • Power Supply within 2 kilometers of the mine site
  • Two ports in close proximity for the export of concentrate

Geology & Resources

Deposit Type

  • Intrusion related, sheer zone hosted gold deposit
  • Similar to multi-million ounce projects including Fort Knox, Pogo and Donlin Creek in Alaska and Telfer and Boddington in Western Australia


  • Granodiorite and metasedimentary rocks along granodiorite contact in a NE trending, 350m wide shear zone
  • Associated with pyrite, arsenopyrite, stibnite and minor base metals
  • > 70% of the gold is refractory and associated with arsenopyrite and/or pyrite

Positive Metallurgy Testwork

> 90% recovery from previous test work based on:

  • Crushing
  • Conventional grinding to 80% passing 75 microns
  • Bulk flotation
  • Concentrate shipped from local port in containers to China, Eastern Europe or Africa

Understanding the Mining and Processing

The Salave mine has small foot print as it is an underground mine with the facilities designed to blend into the country side.

The process is extracting rock underground and reducing the particles to 75 micron sand from which we use flotation to remove arsenic in pyrite that contains sulphur. There are no toxic chemicals used in the flotation process and no liberation of heavy metals. The concentrate is shipped off site removing the natural toxic and acid forming sands from Spain.

Water is used in the process. Options to address water usage include development of closed circuit, 100% recycled water cycle including water purification. An emergency 1 in 100 year storm dam will be installed as a catch all and have an emergency water treatment plant that will be used to clean up local contaminated water from roman times. Below are some Spanish rehabilitated mine sites.

For further information please see view our corporate presentation

Resource Statements

NI43-101 resource base for underground mine

Cut-offMeasuredIndicatedMeasured + IndicatedInferred
TonnesAu g/toz AuTonnesAu g/toz AuTonnesAu g/toz AuTonnesAu g/toz Au


• Rounding may cause apparent discrepancies

• Resource estimate conducted by Mine Development Associates, Inc. effective date of January 22, 2014

• 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 and it is uncertain if further exploration will result in upgrading them to an indicated or measured resource category.

The resource cut-off grade of 2.0 g/t Au was chosen to capture mineralization that is potentially amenable to underground mining, sulfide concentration, and gold recovery using off-site processing. 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.

In addition to the mineral resource remaining open to the west and at depth, the Company will be targeting other areas of known high grade and inferrred mineralization within the current resource model for infill drilling. The company believes there are excellent opportunities to expand the measured and indicated resource base beyond the million ounce threshold at a 2.0 g/t cut off which is achievable at the current gold price.

History of Salave

Gold mining in the vicinity of Salave and other areas in Asturias dates to the Romans in the first century AD, Romans. 2 to 6 million tonnes of material mined in that period with recovery of an estimated 5,000 to 7,000 kilograms of gold.

In the 1940’s quartz veins were mined in shallow underground drifts to extract molybdenum

Modern exploration in the late 1960’s recognized the Salave area as a prospective mineral area with Northgate Exploration Limited, Rio Tinto, Goldfields South Africa, Anglo American Corporation of South Africa Limited and related Charter Consolidated P.L.C. (collectively referred to as “Anglo”); Oromet Joint Venture (“Oromet”); Empresa Minera Newmont Inc. San Diego Gold Minery, S.A and Rio Narcea Gold Mines, Ltd. (“Rio Narcea”).

From Northgate drilling in 1970-1971 through to Rio Narcea in 2004-2005, at least 325 core holes and 139 percussion/reverse circulation (“RC”) holes were drilled on the property; this historic drilling totaled 65,965.5 meters.

Astur acquired the Salave property in 2010. Since December 2011, Astur Gold Corp. has drilled 3,031 meters in infill drilling to upgrade the resources in preparation for the completion of the feasibility study. Drilling has been concentrated on a very small part of the field to bring the resource confidence into reserve categories to support the mine development.

BDG: TSX-V $0.08
CDC: FWB €0.05
Gold: $1266.40