Permitting and Financing Risks Cloud Black Dragon Gold’s Salave Development

Financial Performance and Operational Overview

Black Dragon Gold Corp. has released its financial results for the quarter ended March 31, 2025, reporting a net loss of CAD 377,262, up from CAD 220,754 in the same period last year. The company’s cash outflows from operating activities increased to CAD 368,956, reflecting ongoing expenditures primarily related to advancing its flagship Salave Gold Project in Asturias, Spain. Despite the loss and a working capital deficit, Black Dragon Gold maintains cash and cash equivalents of approximately CAD 1.11 million, underscoring a need for continued financing to support its development and exploration activities.

Salave Gold Project: Permitting Progress and Legal Challenges

The Salave Gold Project remains the company’s core focus, with significant progress made in permitting and environmental approvals. The Environmental Impact Assessment (EIA) was submitted in 2021, followed by extensive public consultation and responses to government queries through 2023 and early 2024. However, a critical hurdle emerged when the Tapia de Casariego municipality rejected Black Dragon’s application to re-zone land from agricultural to industrial use, a necessary step for infrastructure development. The company’s legal advisors have challenged this decision in the Court of Justice of Asturias, with an outcome expected in 2025. This legal dispute represents a key risk factor for the project’s timeline.

Strategic Investment Status and Government Engagement

In December 2024, the Principality of Asturias enacted a law to facilitate strategic investments, aimed at accelerating economically important projects. Black Dragon Gold applied for this strategic status for the Salave Project, which meets all environmental, employment, and investment criteria. The application is under review, with a decision anticipated in the second quarter of 2025. Achieving this status could significantly de-bottleneck permitting and development processes, providing a potential catalyst for the project.

Exploration and Asset Management in Australia

Beyond Spain, Black Dragon Gold has been active in Australia through its Marlee Project, which includes the Ivan and Well gold projects. In 2024, the company completed the sale of its Padbury Gold assets near Meekatharra for AUD 150,000, while retaining the Well tenement, which remains an early-stage exploration target. The company continues to take a measured approach to exploration in Australia, balancing potential with fiscal prudence.

Updated Scoping Study and Future Outlook

In March 2025, Black Dragon Gold completed an updated Scoping Study for the Salave Project, reaffirming the robust economics of an underground mining operation with a 14-year mine life. The study incorporates inflationary pressures and current gold prices, supporting the project’s viability. However, the company acknowledges ongoing risks related to permitting, financing availability, and exploration outcomes. Management remains focused on securing additional capital and advancing the project through the next stages of feasibility and development.