BLACK DRAGON GOLD CORP. - Corporate Spotlight

ASX Announcement 20 March 2019 

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• Submission of the Project Description for the Environmental and Social Impact Assessment (“ESIA”) in February 2019;
• Additional geophysics over the entire Investigation Permit at Salave – April 2019;
• Issuance of the ESIA Terms of Reference in June 2019;
• Soil Geochemistry testing on potential drill targets – June 2019;
• Pre-Feasibility Study – October 2019.

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NEW NI 43-101 MINERAL RESOURCE ESTIMATE INCREASES RESOURCES AT SALAVE

ASX Announcement 25 October 2018 

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, which has been prepared in accordance with JORC, 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.

1. Notes: 

• 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.

CEO and Managing Director of Black Dragon, Paul Cronin, commented: “In addition to the material increase on the previous resource estimate, today’s news marks yet another significant milestone in the advancement of Salave. We believe there is an excellent opportunity for further expansion of the Salave resource because the 2018 drilling program and updated resource model have identified other areas for follow-up drilling and the potential expansion of the Salave Deposit. The work completed over the past 12 months to update the historical data at Salave is proving a good investment and, with additional drilling planned for 2019, we are confident that we can further grow Salave resource base. In the meantime, our preliminary economic assessment is under way and we are looking forward to sharing the results before the end of the year.”

Not only has the 2018 drilling confirmed and infilled areas of gold mineralization within the previous resource model, they intersected high-grade intervals of gold mineralization outside of the previous resource model, at depth and down dip to the west. The 2018 drilling was logged using oriented drill core. This information will be used to complete a detailed structural study over coming months to assist with the interpretation of the structural setting that is controlling the distribution of high-grade gold zones amenable to underground mining.

The Mineral Resource cut-off grade of 2.0 g/t Au was chosen to capture mineralization that is potentially amenable to underground mining. The reported resources occur in bodies of sufficient size and continuity to meet the requirement of having reasonable prospects for eventual economic extraction. 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.

Alternative cut off grades returned the following results.

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Overview

Black Dragon Gold Corp. (TSX-V:BDG, ASX:BCD) owns 100% of the Salave gold project in the Asturias region of Spain, through its wholly owned subsidiary EMC. Salave is a technically robust project situated in a highly prospective region and recognized as one of the largest undeveloped gold projects in Europe. The Company has a highly experienced management and technical team focused on bringing Salave into production as soon as possible and creating shareholder value. Douglas Turnbull, P.Geo, the Company’s Qualified Person under National Instrument 43-101, has reviewed and approved the technical content of the Company's website.

Board of Directors & Management

	Paul Cronin Chief Executive Officer and Managing Director Paul Cronin is a unique resource finance specialist, with significant experience in equity, debt and mergers and acquisitions within the sector. As CEO of ASX Listed Anatolia Energy, Paul oversaw two successful and oversubscribed capital raisings, steering the company to be one of the best performing uranium stocks globally during his time with the company, and prior to its sale at a significant premium to its market capitalisation. Prior to Anatolia, Paul was Vice President at the highly-regarded resource fund, RMB Resources where he originated, structured and managed several debt and equity investments on behalf of the fund. Paul has a B.Com and an MBA. Mr. Cronin has 10 years of commodity trading and structuring experience and 6 years of equity trading and fund management experience. Few professionals in this industry have had direct exposure to the junior resource sector as both a fund manager and CEO, giving him an invaluable insight into the inner workings of capital markets serving that industry.
Jo Battershill Non-Executive Chairman Mr Battershill graduated with a Bachelor of Engineering (Geology) degree (Hons) from the Camborne School of Mines, United Kingdom in 1995. His career spans over 20 years in mining, business development and finance both in Australia and internationally. His industry experience includes senior operational and business development roles with WMC Resources Limited as well as significant stockbroking experience at Hartleys, Citigroup and UBS both in Sydney and London. Mr Battershill was consistently voted one of the leading mining analysts in Australia between 2009 and 2015 by global institutional investors and, until recently, was the Global Mining Strategist (Executive Director) with the UBS investment bank in London. Mr Battershill is currently the Principal of JJB Advisory Limited, a private advisory and consulting firm based in the UK and also serves as a Non-Executive Director of ASX listed Silver Mines Limited.
	Richard Monti Non-Executive Director Thirty year successful career in the international mineral resource industry resulting in broad knowledge and resulting strategic planning capabilities. First-hand working knowledge of all aspects of the industry from project generation through exploration, resource, feasibility, construction, operations, finance, marketing and divestment. Worked in diverse countries with exposure to most commodities including nickel, iron ore, coal, industrial minerals, potash, gold and base metals. Forty-one director-years experience on eleven ASX and TSX listed companies covering exploration and mining activities. Directorships include three as Chairman and sitting on numerous sub-committees. Currently on the board of one ASX listed companies. Worked in organisations from micro-caps through to major mining houses. Built and managed teams of up to 70 personnel. Principal of Ventnor Capital from 2005 to 2010, a corporate advisory business supplying advice across the commercial and corporate spectrum to junior- and mid-size companies. Currently principal of Terracognita supplying advice to resource industry companies. Proven experience and understanding of equity capital markets and debt funding and strong relationships with broking and banking houses in Australia and Canada.
Alberto Lavandeira Non-Executive Director Alberto Lavandeira has over 38 years’ experience operating and developing mining projects. Former Chief Executive Officer, President and COO of Rio Narcea Gold Mines (1995-2007), which built three mines including Aguablanca. Director of Samref Overseas S.A (2007-2014) – involved in the development of the Mutanda Copper-Cobalt Mine in the DRC. Mr. Lavandeira is also CEO & MD of Atalaya Mining, owner of the Riotinto copper project near Seville, Spain.
	Sean Duffy Chief Financial Officer & Company Secretary Mr. Duffy brings with him more than 20 years of international finance experience in the mining industry, previously with Asian Mineral Resources where he served as CFO for the TSXV-listed nickel mining company. Previously, Mr. Duffy was at Anglo Asian Mining Plc where he served as CFO and Company Secretary of the AIM-listed gold mining company and has held senior finance roles at BHP Billiton’s global operations, where he oversaw the corporate integration of the company’s US$9bn acquisition of Western Mining Corporation, and as Finance Director of BHP Billiton Indonesia, where he was responsible for all aspects of finance and admin, IT, procurement and logistics.

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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.

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

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