Salave Gold

Project Overview

Black Dragon Gold Corp. (TSX-V:BDG, ASX:BDG) 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.

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, Oviedo 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, shear zone hosted gold deposit
  • Similar to other intrusions related gold deposit models including Fort Knox, Pogo and Donlin Creek in Alaska and Telfer and Boddington in Western Australia

Mineralization

  • 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 marketed and shipped out of country

Resource Statement

Updated NI 43-101

The new Mineral Resource estimate has yielded a small increase in average grade and for Salave represents a 28% increase from the 944,000 combined Measured and Indicated ounces defined in the Company’s previous resourceestimate at the same cut-off grade of 2.0 g/t Au, released in March 2014 and restated on 2 February 2017.

The MRE has been classified and reported in accordance with JORC and the CIM Code. The Mineral Resource has been reported above a cut-off of 2 g/t Au and is current to 31 October 2018. The MRE follows 2,217 metres of core drilling completed in 2018 and based on a revised interpretation of the Salave Deposit. 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.

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 mined 2 to 6 million tonnes of material in that period with recovery of an estimated 5,000 to 7,000 kilograms of gold.

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

Modern exploration in the late 1960s 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 a feasibility study.

BDG: TSX-V $0.09
CDC: FWB €0.04
Gold: $1280.52