Black Dragon Gold (ASX: BDG) as taken a “significant step forward” at its flagship Salave project in Spain after local authorities agreed to consider rezoning the site as an industrial area to allow mining activities.
Following an extended consultation period with the Tapia de Casariego Town Council since local elections were held in the region last year, management says the process is a key component in its bid to secure environmental impact approval for the project.
The Salave project in Spain’s Asturias province is one of Europe’s biggest undeveloped gold projects. Management says it will continue its advocacy and awareness initiative designed to assist in the promotion of Salave as it chases its environmental impact green light.
Black Dragon Gold executive chairman Dominic Roberts
Roberts said it had been a frustrating wait to effect material progress at Salave since he assumed his role last November, but hoped today’s positive development would help explain the period of “operational silence”.
The project is endowed with a measured mineral resource of 1.03 million tonnes at 5.59 grams per tonne gold for 190,000 ounces, an indicated mineral resource of 7.18 million tonnes grading 4.43g/t gold for 1.02 million ounces and inferred resources totalling 3.12 million tonnes going 3.47g/t gold for a further 350,000 ounces. The total resource for the three categories amounts to 11.33 million tonnes at 4.27g/t gold for a handsome 1.56 million ounces.
Black Dragon says the Tapia de Casariego Town Council is now assessing its resubmitted application aimed at changing Salave’s land-use designation from agricultural to industrial to allow mining. It explains that while the rezoning application is distinct from the project’s main environmental impact assessment (EIA), which was submitted to the Asturias Ministry of Mines in July 2021, the application is required as a condition for final approval.
Now that the permitting process is officially underway, Black Dragon says it will focus on advancing its technical studies to incorporate the EIA’s requirements, while also updating its economic assessment of the project in line with the world’s high-flying gold prices in recent times.
Following a change in the local political winds that formerly opposed mining activity, Black Dragon believes the region’s new mayoral incumbent can help put a breeze behind its back.
The company is no doubt eager to kick off the development of Salave to take advantage of the gold price that has improved significantly during its long wait for the approvals process to swing into action.
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