Drilling Identifies New High-Grade Extensions to Salave Gold Resource

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TSX VENTURE:BDG

www.blackdragongold.com

Mr. Paul Cronin reports:

Wide zones of high-grade gold intersected outside of current resource model, including:

  • BD18-01
    • 4.4m @ 41.9 g/t Au from 125m
    • 12.4m @ 25.8 g/t Au from 305m, including
      5.2m @ 53.0 g/t Au from 313m (new zone)
  • BD18-02
    • 30.8m @ 7.1 g/t Au from 218m, including
      14.1m @ 9.9 g/t Au from 218m
  • BD18-03
    • 12.6m @ 18.1 g/t from 284m
    • 4.2m @ 52.0 g/t Au from 339m (new zone)

New zone(s) of mineralisation identified at depth and down dip points to strong potential for high-grade extensions to Salave’s current Mineral Resource model.

Cheltenham, U.K.– 11 September 2018 – Black Dragon Gold Corp.(ASX:BDG, TSX-V:BDG) (“Black Dragon” or the “Company”) is pleased to announce the assay results of three more drill holes from the Company’s 2018 infill anddefinition drilling campaign at its wholly owned Salave Gold Project in the Asturias region in northern Spain (“Salave” or the “Project”).The results from drill holes BD18-01, 02 and 03 are significant because they have intersected high-grade mineralisation beyond the constraints of the current Mineral Resource model, at depth and down dip to the west and north-west. This confirms the potential for significant exploration upside to Salave’s existing measured and indicated resource of 6.52 million tonnes at 4.51 g/t Au, for 944,000 ounces of gold (see February 2, 2017 News Release).

These new drill results are some of the highest-grade intersections recorded to date at the Project and are expected to have a positive impact on the next Mineral Resource estimate, which is due for completion in late Q3/early Q4 2018.

The main objective of the 2018 drill program was to confirm the extent and continuity of high-grade gold mineralisation at Salave as the Company prepares to immediately undertake a Preliminary Economic Assessment(“PEA”) focusing on an updated Mineral Resource estimate and a new underground mine plan.

CEO and Managing Director of Black Dragon, Paul Cronin, commented:

“The drill hole results announced today support our belief that the Salave deposit is open at depth and laterally.

“Additionally, the 2018 drill program has in-filled gaps and voids in the current resource block model and we are anxious to see what impact the rest of the 2018 drilling and possibly a revised interpretation of the deposit will have on an updated Mineral Resource estimate, which we plan to complete once we have received and compiled all results from the remaining two drill holes.

“The new management team at Black Dragon has been working diligently to review the extensive historical work undertaken at Salave, including the establishment of a new Geological Database of the deposit that is substantially more extensive than previously prepared.

“When we listed on the ASX in August, we promised shareholders positive news flow. These results are the start of what we hope will be a period of advancing and improving the value of this tremendous gold project.”

Table 1 – Select results from diamond drill holes BD18-01, 02 and 03

Hole     From (m)     To (m)     Interval (m)     Au(ppm)
BD18-01     125.00     129.35     4.35     41.90
      146.60     167.25     20.65     5.10
Including     146.60     157.90     11.30     7.42
      199.60     206.40     6.80     8.25
      217.10     220.20     3.10     7.13
      305.30     317.70     12.40     25.83
Including     312.55     317.70     5.15     52.99
                         
BD18-02     218.40     249.20     30.80     7.07
Including     218.40     232.50     14.10     9.89
      272.00     275.50     3.50     5.20
      294.00     297.95     3.95     8.30
      310.00     311.50     1.50     8.88
                         
BD18-03     159.75     165.90     6.15     8.18
      283.65     296.25     12.60     18.09
      313.55     318.00     4.45     10.58
      339.00     343.20     4.20     52.03

Mineralised intervals were selected to achieve a minimum grade consistent with the Mineral Resource grades deemed amenable
to underground mining methods in the 2017 MDA Mineral Resource estimate. The selected intervals included above were based
on 2.5 g/t Au cut-off grade, 2 metres minimum interval length and maximum internal waste interval of 2 metres. Reported mineral
widths may not represent true width. Collar locations were surveyed in UTM coordinates based on ERTS89 datum, Zone 29N –
Please see Appendix 1.

The 2018 drill campaign consists of seven diamond holes (BD18-01-07) totalling 2,117 metres. To date, results have been received for holes BD18-01 to 05. Compilation and verification of results from holes BD18-06 and BD18-07 is pending and expected to be reported in the coming weeks. Hole BD18-05 did not reach its target at depth and was re drilled as Hole BD18-07.

The 2018 drill program targeted the north-west quadrant of the current resource model and was designed to confirm the presence of steep structures associated with high-grade gold mineralisation and to test for possible lateral extensions of flat to shallow west-dipping stacked lenses of mineralisation defined in the Company’s current Mineral Resource model. The Company will be utilising the new information from the 2018 drill holes to update the current Salave Mineral Resource estimate, which will be used as the basis for a PEA and ongoing feasibility study of an underground mine at Salave. Previously released drill results from holes BD18-04 and BD18-05 are summarised below (see 14 April 14 2018 news release for full details):

Hole     From (m)     To (m)     Interval (m)     Au(g/t)
BD18-05     147.00     152.60     5.60     6.00
      174.60     191.00     16.40     5.86
Including     174.60     179.85     5.25     8.66
Including     187.10     191.00     3.90     8.35
      199.90     212.00     12.10     8.02
      220.00     222.60     2.60     9.08
      234.10     250.80     16.70     17.60
Including     234.10     240.80     6.70     30.27
                         
BD18-04     103.50     109.50     6.00     5.91
      167.00     171.50     4.50     6.05
      183.05     220.50     37.45     6.60
Including     209.00     219.00     10.00     13.43
      243.00     255.00     12.00     6.83

Mineralised intervals were selected to achieve a minimum grade consistent with the Mineral Resource grades deemed amenable
to underground mining methods in the 2017 MDA Mineral Resource estimate. The selected intervals included above were based
on 2.5 g/t Au cut-off grade, 2 metres minimum interval length and maximum continuous internal waste interval of 2 metres.
Reported mineral widths may not represent true width. Collar locations were surveyed in UTM coordinates based on ERTS89
datum, Zone 29N – Please see Appendix 1.

The Salave Deposit consists of a series of stacked horizontal to shallow west-dipping lenses of mineralisation associated with altered (advanced sercitisation and albitisation) fracture zones within the Salave granodiorite. The Salave Granodiorite is a large north-west trending, approximately 500m wide, steeply dipping sill-like intrusive body overlain by metasediments on the western flank of the deposit. The contact between the metasediments and the Salave granodiorite trends approximately north-east and dips gently to the north-west, approximately parallel to the dip of the regional thrust faulting and the Salave Deposit. The mineralised lenses that form the Salave Deposit pinch and swell and at time these lenses appear to coalesce or are connected by steeper structures, which may act as feeders to the mineralisation within the shallow dipping lenses. As the focus moves deeper through the deposit, the lenses appear to offset and step down to the west and collectively form a tabular zone immediately below and roughly parallel to the contact with the overlying metasediments. Not only have drill holes BD18-01 to 05 confirmed and infilled areas of gold mineralisation within the previous resource model, they have intersected high-grade intervals of gold mineralisation outside of the current 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 in Q4 2018 that will assist in the interpretation of the structural setting that is controlling the distribution of high-grade gold zones amenable to underground mining.

For further information, please contact:

Paul Cronin
CEO & Managing Director
P: +44 20 79934077
E: [email protected]

Peter Klinger
Cannings Purple
P: +61 (0)411 251 540
E: [email protected]

COMPETENT & QUALIFIED PERSONS

Santiago Gonzales Nistal, EurGeol., a Qualified Person as defined by National Instrument 43-101 and a Competent Person as defined by JORC 2012. Mr Nistal who is a consultant to Black Dragon, supervised the diamond drilling program at the Salave Gold Project and reviewed, verified and compiled the data reported herein. Douglas Turnbull, P.Geo., a Qualified Person as defined by National Instrument 43-101 and Competent Person as defined by JORC 2012 is a consultant to Black Dragon and has reviewed and approved the scientific and technical disclosure in this news release.

METHODOLOGY AND QA/QC

The analytical work reported on herein was performed by ALS Laboratory Group. SL (“ALS”) in, Spain and Ireland. ALS is an ISO 17025-2005 accredited and internationally recognised analytical services provider. All drill core was logged and sampled at its core storage facility in Tapia de Casariego. Sample intervals varied from 0.85 to 2.05 metres and all core was split and one half quartered by saw and quarter core samples were shipped to ALS in Seville. Samples were crushed and pulverised at ALS and a 50 gm sample was analysed for gold by Fire Assay method and AA finish. Samples were also analysed by four acid ICP-AES for arsenic, antimony and sulphur. The Company follows industry standard procedures for the work carried out on the Salave Gold Project with a quality assurance/quality control (QA/QC) program. Blank, duplicate and standard samples were inserted into the sample sequence sent to the laboratory for analysis. Black Dragon detected no significant QA/QC issues during review of the data.

BLACK DRAGON GOLD CORP.

1000 Cathedral Place
925 West Georgia Street
Vancouver, BC V6C 3L2, Canada,
T- +44 20 79934077 F- +44 20 71128814
[email protected]
www.blackdragongold.com

ABOUT BLACK DRAGON GOLD

Black Dragon Gold Corp. (ASX/TSXV: BDG) is the 100% owner of one of the largest undeveloped gold projects in Europe, the Salave project. Salave is situated in the north of Spain in the province of Asturias. 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. For more information on the Salave project, please refer to the technical report “Amended Technical Report on the Salave Gold Project, Asturias Region, Spain” dated October 7, 2016, as amended January 31, 2017, and filed on SEDAR and posted on the Company’s website at www.blackdragongold.com.. In addition to the current Mineral Resource, historical exploration work suggests there is potential for further mineralisation within Black Dragon’s landholdings.

Appendix 1 – Drill Summary

Note: Collar locations were surveyed in UTM coordinates based on ERTS89 datum, Zone 29N.

Hole     Easting     Northing     Elev (m)     Azimuth     Dip     EOH (m)     From (m)     To (m)     Interval (m)     Au(ppm)
BD18-01     668317     4825867     40     260     -75     352     98.75     103.50     4.75     3.54
                                          125.00     129.35     4.35     41.90
                                          146.60     167.25     20.65     5.10
                                    Including     146.60     157.90     11.30     7.42
                                    Including     164.10     167.25     3.15     3.64
                                          176.80     178.15     1.35     4.48
                                          199.60     206.40     6.80     8.25
                                          217.10     226.30     9.20     4.05
                                    Including     217.10     220.20     3.10     7.13
                                          223.60     226.30     2.70     4.94
                                          305.30     317.70     12.40     25.83
                                    Including     312.55     317.70     5.15     52.99
BD18-02     668317     4825865     40     230     -70     323     121.70     129.00     7.30     4.69
                                          145.40     154.30     8.90     4.10
                                          177.25     184.25     7.00     4.12
                                          195.25     198.50     3.25     7.47
                                          218.40     249.20     30.80     7.07
                                    Including     218.40     232.50     14.10     9.89
                                          272.00     275.50     3.50     5.20
                                          279.50     283.40     3.90     4.44
                                          294.00     297.95     3.95     8.30
                                          308.50     311.50     3.00     4.77
                                    Including     310.00     311.50     1.50     8.88
BD18-03     668319     4825865     40     210     -75     356     150.35     151.90     1.55     5.74
                                          159.75     165.90     6.15     8.18
                                          195.10     199.50     4.40     3.12
                                    Including     195.10     196.50     1.40     5.91
                                          208.50     220.50     12.00     2.75
                                          257.55     261.40     3.85     4.52
                                          265.50     267.00     1.50     11.25
                                          283.65     296.25     12.60     18.09
                                          313.55     318.00     4.45     10.58
                                          339.00     343.20     4.20     52.03
BD18-04     668316     4825870     41     180     -65     296     103.50     109.50     6.00     5.91
                                          167.00     171.50     4.50     6.05
                                          183.05     220.50     37.45     6.60
                                    including     209.00     219.00     10.00     13.43
                                          243.00     255.00     12.00     6.83
                                          266.00     269.00     3.00     3.87
BD18-05     668230     4825802     40     050     -75     323     147.00     152.60     5.60     6.00
                                          174.60     191.00     16.40     5.86
                                    Including     174.60     179.85     5.25     8.66
                                    Including     187.10     191.00     3.90     8.35
                                          199.90     212.00     12.10     8.02
                                          220.00     222.60     2.60     9.08
                                          234.10     250.80     16.70     17.60
                                    Including     234.10     240.80     6.70     30.27

Appendix 2 – JORC Table

Section 1: Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)