Black Dragon Gold (ASX:BDG) reports an updated Scoping Study demonstrates robust economics for its 100% owned Salave Gold Project located in Asturias, northern Spain.
Completed by Bara Consulting (UK) last month, the company says the updated study demonstrates an underground mining operation with a 14-year mine life plus two years of pre-production development and concurrent closure.
This updated study is based on the same geology/grade block model used during the mineral resource evaluation in 2018, as no further exploration results are currently available.
The 2018 mineral resource model was reviewed and re-reported by Bara under current assumptions and parameters underpinning reasonable chances of eventual economic extraction (RPEEE), taking into account the significant impact of both inflation and gold prices since 2018.
Black Dragon says the update includes considerable improvements in nearly all financial and production metrics with minimal impact on project development and sustaining costs.
A substantial portion of the presently estimated resource is in either the measured (9%) or indicated (66%) category, sufficient to support further studies at Prefeasibility Study (PFS) levels of detail.
Potential for resource extension both at depth as well as along strike through further exploration drilling has been identified. An updated assessment of mining, processing and infrastructure aspects of the project, including costs and economic analysis, has been undertaken.
Environmental baselining work continues, and an initial Environmental Impact Assessment (EIA) to meet Spanish requirements has been submitted for consideration by relevant authorities.
Additionally, Black Dragon recently submitted an application to the Government of Asturias for Salave to be approved as a Strategic Project through the newly promulgated Asturian law on Strategic Investments.
The project has been independently assessed to meet all key criteria of the new law. Remnant community-level opposition to the project arising is noted but is planned to be addressed going forward both through enhanced stakeholder engagement, as well as reaching ‘strategic investment’ status as applied for in December 2024.
Concurrent with the study work reported, local EIA and land rezoning applications, while not strictly required for scoping stages of study, remain in progress. Environmental baselining work is also in progress. A renewed stakeholder engagement programme incorporating plans for addressing historic grievances of the local community towards past project owners will be implemented.
Write to Adam Orlando at Mining.com.au
Images: Black Dragon
