VANCOUVER, British Columbia-Black Dragon Gold Corp. (ASX/TSX-V: BDG) (‘Black Dragon’ or the ‘Company’) is pleased to announce an updated NI 43-101 Mineral Resource Estimate for its Salave Gold Deposit (‘Salave’) in northern Spain.
The updated estimate 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.
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 resource estimate at the same cut-off grade of 2.0 g/t Au, released in March 2014 and restated on 2 February 2017.
- Rounding may cause apparent discrepancies
- Resource estimate conducted by CSA Global of Perth Australia (“CSA”) with an effective date of October 22, 2018 and will be supported by a technical report to be filed within 45 days of the date of this news release
- 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
Black Dragon has initiated a Preliminary Economic Assessment (‘PEA’) that will incorporate the increased new Mineral Resource and a new underground mine plan. The overall goal of the 2018 PEA is to develop an economically robust mine plan that has a minimal footprint by focusing on the highest-grade portions of Salave’s updated Mineral Resource model. The Company’s management is committed to and confident that we will be able to develop a mine plan that fits in with the local community’s expectation of a responsible and environmentally respectful mining operation.