Black Dragon Gold's Quarterly Report: Salave Project Progress and Padbury Gold Sale
BLACK DRAGON GOLD CORP. (BDG) Share Update July 2024 Wednesday 31st
Black Dragon Gold Announces Key Updates in Quarterly Report
Black Dragon Gold Corp. (ASX: BDG) has released its quarterly activities report for the period ending 30 June 2024, highlighting significant progress in its Salave Gold Project and the sale of its Padbury Gold permits.
Instant Summary:
- Sale of Padbury Gold permits to Parbo Resources for A$150,000.
- Progress in permitting process for Salave Gold Project in Spain.
- Increased community support for Salave through educational and outreach programs.
- No exploration activity at Ivan Well during the quarter.
- Shareholder approval of AU$1.2 million Private Placement capital raise.
Operational Update
During the quarter, Black Dragon Gold made significant strides in its Salave Gold Project located in Asturias, northern Spain. The project boasts over 1.5 million ounces of high-grade gold. The company re-submitted an application to change the land designation from agricultural to industrial to facilitate mining activities. This application is crucial for the project's advancement and is currently under consideration by the Tapia de Casariego Town Council and the Principality of Asturias.
Spain-based General Manager, Jose Dominguez, has been actively engaging with local stakeholders, including the Asturian Regional Government, the Oviedo School of Mines, trade unions, and economic development NGOs. These efforts have been well-received, with increased community support for the project.
Corporate Update
In May 2024, Black Dragon Gold completed the sale of its Padbury Gold permits in Western Australia to Parbo Resources for A$150,000. This strategic move allows the company to focus more resources on its core projects. The company retained its Ivan Well exploration license near Wiluna, which presents future exploration opportunities.
Additionally, Black Dragon Gold shareholders approved a AU$1.2 million Private Placement capital raise in June 2024. This capital injection will support ongoing and future activities, including the advancement of the Salave Gold Project.
Financial Overview
The company's financials for the quarter show a net cash outflow of CAD$302,000 from operating activities. However, the sale of Padbury Gold permits provided a cash inflow of CAD$149,000. The company ended the quarter with CAD$1,242,000 in cash and cash equivalents, ensuring sufficient funding for the next several quarters.
The sale of Padbury Gold permits is a positive step, providing additional capital and allowing Black Dragon Gold to focus on its core projects. The progress in the Salave Gold Project's permitting process is also encouraging, as it brings the company closer to operationalizing one of Europe's largest undeveloped gold projects. These developments are likely to bolster investor confidence and positively impact the company's stock price.
Investor Reaction:
Analysts are likely to view the sale of Padbury Gold permits and the progress in the Salave Gold Project favorably. The increased community support and successful capital raise further strengthen the company's position. However, investors will be keenly watching the outcome of the permitting process and any future exploration results at Ivan Well.
Conclusion:
Black Dragon Gold has made significant progress in the past quarter, particularly with the Salave Gold Project and the strategic sale of Padbury Gold permits. Investors should keep an eye on the permitting process and potential future developments at Ivan Well. The company's strategic focus and community engagement efforts are promising signs for its future growth.