AP NEWS

Final 2018 Drill Results Continue to Confirm Expansion Potential for Salave Gold Resource

September 24, 2018

VANCOUVER, British Columbia--(BUSINESS WIRE)--Sep 24, 2018--Black Dragon Gold Corp. (ASX: BDG, TSX-V: BDG) (“Black Dragon” or the ” Company”) is pleased to announce the assay results from the final two drill holes of the Company’s 2018 infill and definition drilling campaign at its wholly owned Salave Gold Project in the Asturias region in northern Spain (” Salave” or the ” Project” ).

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180924006062/en/

Figure 1: Plan Map showing 10 g/t Au blocks from MDA Mineral Resource Estimate (Photo: Business Wire)

The results from drill holes BD18-06 and 07 are significant because they have intersected high-grade mineralisation within and beyond the constraints of the current Mineral Resource model. This continues to confirm the potential for significant exploration upside to Salave’s existing measured and indicated resource of 6.52 million tonnes at 4.51 g/t Au, for 944,000 ounces of gold (see February 2, 2017 news release).

The 2018 drill campaign has not only been successful in achieving the Company’s main objective of confirming the extent and continuity of high-grade gold mineralisation at Salave, the 2018 drill programme has also extended the limits of mineralization defined by the current Mineral Resource model.

The Company anticipates that the results from the 2018 drill programme will have a positive impact on the next Mineral Resource estimate update, which is due for completion in early Q4 2018. The updated Mineral Resource update will be the basis for a Preliminary Economic Assessment (“PEA”) focusing on a new underground mine plan and also planned for completion by the end of 2018.

CEO and Managing Director of Black Dragon, Paul Cronin, commented:” I am very pleased with the outcome of the 2018 drill programme at Salave.The drill hole results announced today and previously support our belief that not only the Salave deposit is open to expansion, but there are also opportunities to discover new and expand existing zones of very high grade gold mineralization within and outside of the existing resource model that will become the focus of our PEA and defining an underground mine target.”

“We will immediately proceed to compile the results of the 2018 drilling and generate a revised interpretation based on these new results. The new interpretation will be the foundation of an updated Mineral Resource estimate, expected in early Q4.”

Select results from diamond drill holes BD18-06 and BD18-07 include:

Mineralised intervals were selected to achieve a minimum grade consistent with the Mineral Resource grades deemed amenable to underground mining methods in the 2017 MDA Mineral Resource estimate. The selected intervals included above were based on 2.5 g/t Au cut-off grade, 2 metres minimum interval length and maximum continuous internal waste interval of 2 metres. Reported mineralised intervals may not represent true widths. Collar locations were surveyed in UTM coordinates based on ERTS89 datum, Zone 29N – Please see Appendix 1.

The 2018 drill campaign consisted of seven diamond holes (BD18-01 to 07) totalling 2,117 metres, targeting the north-west quadrant of the current resource model and was designed to confirm the presence of steep structures associated with high-grade gold mineralisation and to test for possible lateral extensions of flat to shallow west-dipping stacked lenses of mineralisation defined in the Company’s current Mineral Resource model. The Company will be utilising the new information from the 2018 drill holes to update the current Salave Mineral Resource estimate, which will be used as the basis for a PEA and ongoing feasibility study of an underground mine at Salave. Previously released drill results from holes BD18-01 to BD18-05 (see April 14, 2018, and September 11 2018 news releases for full details):

Mineralised intervals were selected to achieve a minimum grade consistent with the Mineral Resource grades deemed amenable to underground mining methods in the 2017 MDA Mineral Resource estimate. The selected intervals included above were based on 2.5 g/t Au cut-off grade, 2 metres minimum interval length and maximum internal waste interval of 2 metres. Reported mineralised intervals may not represent true widths. Collar locations are UTM coordinate based on ERTS89 datum, Zone 29N – Please see Appendix 1.

The Salave Deposit consists of a series of stacked horizontal to shallow west-dipping lenses of mineralisation associated with altered (advanced sercitisation and albitisation) fracture zones within the Salave granodiorite. The Salave Granodiorite is a large north-west trending, approximately 500m wide, steeply dipping sill-like intrusive body overlain by metasediments on the western flank of the deposit. The contact between the metasediments and the Salave granodiorite trends approximately north-east and dips gently to the north-west, approximately parallel to the dip of the regional thrust faulting and the Salave Deposit. The mineralised lenses that form the Salave Deposit pinch and swell and at time these lenses appear to coalesce or are connected by steeper structures, which may act as feeders to the mineralisation within the shallow dipping lenses. At depth, the mineralised lenses appear to offset and step down to the west and collectively form a tabular zone immediately below and roughly parallel to the contact with the overlying metasediments. Results from the 2018 drilling have confirmed and infilled areas of gold mineralisation within the previous resource model and have intersected high-grade intervals of gold mineralisation outside of the current resource model, at depth and down dip to the west.

This article has been truncated. You can see the rest of this article by visiting http://www.businesswire.com/news/home/20180924006062/en.

AP RADIO
Update hourly