“Through its wholly owned subsidiary Exploraciones Mineras del Cantábrico (EMC),
Black Dragon Gold Corp (ASX: BDG) owns 100% of the Salave gold project in the Asturias region of Spain. Salave is a technically robust project situated in a highly prospective region and is recognised as one of the largest undeveloped gold projects in Europe.
A new Board and in-country senior management team were appointed in 2017 to reinvigorate the company and drive the project to production. EMC proposes a modern and sustainable mining operation, making use of new technology to produce gold concentrate for the next 14 years. The executive team improved project economics through a cost-effective buy-out of a legacy royalty that existed over the deposit.
Asturias is a strong mining region which, due to its unique geological characteristics, is extremely well-endowed in mineral resources.
The mining activity in the region will encourage economic growth and development of the area. This project is an opportunity for the socio-economic revitalisation of the community and its population.
The February 2019 Preliminary Economic Assessment leveraged previous technical work resulting in a Pre-Tax NPV of $296m over a 14-year mine life, with an IRR of 28% and 3.8 year payback. The high grade gold intervals from 2018 drilling demonstrate a great potential to expand mineralised lenses at Salave.
The Company has submitted the Initial Project Description, the first of a multi-stage review process which culminates in a decision to grant environmental clearance for the development of the Salave Gold Project. The General Directorate of Mining is in the process of reviewing the documentation and has sent a request to the Department of Environment to prepare the Terms of Reference for the submission of the EIA.”