Take physic, pomp

Mining PRs and the Ottotrans™, Part 97


Welcome to the ninety-seventh edition of our occasional series in which we take the news releases and announcements made by junior mining companies, extract the gobbledygook and leave you with the real message behind the spin and nonsense. This time we run with Black Dragon Gold Corp (BDG.v) and its 1,830 word (!!) NR this morning:

This is what they wrote:

Black Dragon Gold Corp. Update to Shareholders
January 11,
BC–(Marketwired – January 11, 2017) – Black Dragon Gold Corp. (TSX VENTURE:
BDG) (“Black Dragon” or the “Company”). Brian Wesson
releases the following letter to update on corporate and financial matters as
well as a strategy update to shareholders.
Further to
my letter of September 19, 2016 (the “September Update”), the
Company’s focus is to extract value for shareholders by moving Salave to
production as quickly as possible. The immediate goals are:
Re-engaging with Stakeholders;
2. Recapitalising the Company; and
3. Completing the Feasibility Study.
with Stakeholders
re-emphasise our commitment to operating the project with the support of our
stakeholders. Since the September Update, we have progressed our strategy
towards the next stage of permitting. In light of the fact that the mining
concessions have been granted and in good stead, as confirmed by the Supreme
Court of Spain in September 2016, management can focus on completing the
Feasibility Study and engaging with stakeholders on the social and
administrative feasibility of the project options. The Company’s focus is on
presenting a final project for Administrative Mining Project Authorisation and
feasibility that is the result of a transparent and collaborative process,
independent of the legal process underway and, as such, we are and will work
extensively with our in-country consultants, the regulatory authorities and
stakeholders. We anticipate submitting applications for the remaining relevant
permits and publication of the Feasibility Study prior to Q3, 2017.
We have
reached out to the relevant authorities at all levels of the government. Spain
has recently finalised the re-election of the federal government and are
finalising appointments to the relevant departments. We continue to engage with
the local and regional authorities to foster the necessary trust in the Company
and management.
We are in
the process of selecting a Board of Directors and management team for our
Spanish subsidiary and operating company in Spain. It is critical that the
project is operated as a Spanish and Asturias-based project with an extensive
local presence, and we have taken great measures to identify candidates that
have the necessary expertise and are sensitive to the needs of the local
communities. Our local Spanish team will be administering the project, handling
the day to day operations and providing accessible and effective community
relations. Black Dragon’s technical team will join where required and provide
assistance to the local management team with the support of the executive
directors and management of Black Dragon.
Company’s executive directors, technical and corporate team expects to spend
significant time connecting with the Spanish team and collectively engaging
with the stakeholders in Asturias and Tapia in Q1 2017. The executive directors
will continue to spend significant time in Spain on an ongoing basis, working
with the authorities and stakeholders to ensure the project supports and
ultimately becomes an integral part of the community.
We have set up a temporary website, www.fenixmineriaoro.es,
from which the community can contact management and discuss any issues or
concerns as and when they arise.
We will update the website as we progress with
the Company
previously announced, management has been reviewing the financing options with
a view to balancing the Company’s requirement to ensure it is sufficiently
capitalised to be able to focus its resources on fast tracking to production
and maximising the value to shareholders.
The Company’s
priority is repaying the reduced workout of the RMB debt to clear the burden on
the balance sheet and re-focus on the project. The Company exercised the option
agreement, as negotiated by Lionsbridge, in December 2016 and expects to close
the definitive RMB agreements on or before 20 January 2017. The repayment of
the RMB debt will facilitate the project financing which is expected in Q3-Q4
2017. Management is in discussion with potential project financiers to fast
track this process.
the Feasibility Study
previously announced, there are considerable resources available for the
Feasibility Study with the majority of the studies underlying reports
completed. Furthermore, we have engaged TetraTech to complete the feasibility
study. The TetraTech mandate is to work with the Company with input from our
Spanish legal counsel, Herbert Smith Freehills, technical advisor Westech
International, the relevant Spanish permitting authorities and stakeholders to
finalise a final project design that addresses the concerns of all parties
while maximising the value for shareholders. The completed reports will then
form the basis of the study which is expected to be published in Q2-Q3 2017. Much
of the technical work completed to date has been published by the following
a. Technical
reports on the mineral resource base completed by Mining Development Associates
, Golder Associates and Roscoe Postle and Associates Inc.
b. Metallurgical test work carried out by Ausenco Ltd. and ALS Metallurgy
Kamloops. The relevant reports determined that flotation kinetics are good and
a high-grade concentrate can be produced removing any need for the use of
cyanide, de-risking the permitting process.
c. Extensive environmental reports published by the University of Oviedo, Spain
based consultants Congeo and Amphos 21 and SRK, (UK).
d. Reports covering design elements such as the mine planning, paste fill,
plant layouts and costing by international and Spain based consulting groups.
As announced in the prior update to shareholders, the
Salave project is the largest undeveloped Gold deposit in Europe with
significant intrinsic value. Management’s view on the project is supported by:
1. The 69,000 meters of mostly diamond drilling
completed across the mining concessions demonstrating the geology to be
consistent with other intrusive hosted/related multimillion ounce gold deposits
such as Fort Knox, Pogo and Donlin Creek in Alaska and Telfer and Boddington in
Western Australia.
2. The quality of the orebody and depth potential is demonstrated by
intersections including Hole RN 70 which intersected two discrete zones of high
grade mineralisation, 29.5 g/t Au over 18.15m at 252.2 meters depth and 37.7
g/t au over 21.65 m at 281.0 meters depth.
3. The exploration upside is demonstrated by drill intercepts on strike of the
existing resources and the lack of drilling at depth despite the continuation
of high gold grades at depth and down plunge of the known mineralisation. The
mineralisation typically occurs as wide zones averaging 18 m thickness and
generally dipping at 30 degrees with grade increasing at depth. Regional upside
is underpinned by mining concessions that cover an area of 662 hectares and an
Investigative Permit that cover an additional 2,765 hectares, comprising a
significant land holding of 3,426.97 hectares in a highly prospective region.
4. The overall economic viability demonstrated in Golder’s PEA report issued in
5. The confirmation of a resource base amenable to underground mining as per
Mining Development Associates NI 43-101 technical report (Oct. 7, 2016). The
current mineral resource for Salave includes measured and indicated resources
containing 944,000 ounces of gold (6.52 million Tonnes @ 4.51 g/t Au)
calculated at a 2.0 g/t Au cutoff grade using a USD$1,100/ounce gold price (See
February 6, 2014 and October 17, 2016 News Releases).
6. The amount of land owned including 10 hectares of freehold land primarily
over the Salave deposit and historical Roman open cut workings.
The Technical Information disclosed in this news
release has been reviewed and approved by Douglas Turnbull, P.Geo., a Qualified
Person as defined under National Instrument 43-101.
Signed “Brian Wesson”
President and Chief Executive Officer
on behalf of the Board of Directors
Black Dragon Gold “BDG” is the 100% owner of
the largest undeveloped gold project in Europe, the Salave project. Salave is
situated in the North of Spain in the province of Asturias. The Company is
moving Salave to production supported by a strong management team and board of
directors experienced in the design, construction and operation of mining
projects worldwide. The Salave project has measured and indicated resources
totalling 6.52 million Tonnes grading 4.51 g/t Au containing 944,000 ounces of
gold at a 2.0 g/t cutoff grade and gold price of USD$1,100/ounce. In addition
to the current mineral resource, historical exploration work suggests there is
the potential for additional mineralisation within Black Dragon’s landholdings.
The company considers Salave to be a near term development project.
Neither the TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news
release includes certain information that may be deemed “forward-looking
information”. Forward-looking information can generally be identified by
the use of forward-looking terminology such as “may”,
“will”, “expect”, “intend”, “estimate”,
“anticipate”, “believe”, “continue”,
“plans” or similar terminology, or negative connotations thereof. All
information in this release, other than information of historical facts,
including, without limitation, expecting timing for commencement and completion
of the feasibility study, timing for the submission of applications for and
receipt of permits, timing for the completion of transactions with RMB as well
as completion of related financing, availability of and timing for project
financing, the estimation of mineral resources, the realization of mineral
resource estimates, interpretation of prior exploration and potential
exploration results, the timing and success of exploration activities
generally, future production estimates and the timing of same and the timing
and results of future resource estimates, are forward-looking information that
involve various risks and uncertainties. Although the Company believes that the
expectations expressed in such forward-looking information are based on
reasonable assumptions, such expectations are not guarantees of future
performance and actual results or developments may differ materially from those
in the forward-looking information. Forward-looking information is based on a
number of material factors and assumptions. Factors that could cause actual
results to differ materially from the forward-looking information include
changes in project parameters as plans continue to be refined, future metal
prices, availability of capital and financing on acceptable terms, general economic,
market or business conditions, uninsured risks, regulatory changes,
availability of personnel, materials and equipment on a timely basis, accidents
or equipment breakdowns, delays in receiving government approvals, the
Company’s ability to maintain the support of stakeholders necessary to develop
the Salave project, unanticipated environmental impacts on operations and costs
to remedy same, and other risks detailed herein and from time to time in the
filings made by the Company with securities regulatory authorities in Canada.
are cautioned that mineral resources that are not mineral reserves do not have
demonstrated economic viability. Mineral exploration and development of mines
is an inherently risky business. Accordingly, actual events may differ
materially from those projected in the forward-looking information. For more
information on the Company and the key assumptions, risks and challenges with
respect to the forward looking information discussed herein, and about our
business in general, investors should review the 2015 technical report on the
Salave project and the Company’s other continuous disclosure filings which are
available at www.sedar.com. Readers are cautioned not to place undue reliance
on forward-looking information. The Company does not undertake to update any
forward looking information, except in accordance with applicable securities

And this is what it means:

We used to be called Astur Gold. We changed the name of the company. Nothing else has happened. The Salave project will never be permitted. Please allow us to rip you off again. Enjoy 2017.

Leave a Reply

Your email address will not be published.

Hello, you are not in a chatroom, you are in my living room. Opposing views and criticisms welcome, insults or urinating on furniture unwelcome. Please refrain from swearing if possible, it is not needed.