Black Dragon Gold progresses its Salave Gold Project’s strategic investment application amid positive community support and reports a stable cash position at quarter-end.
- Salave Gold Project enters public consultation for land use change
- Over 63% community support confirmed in recent polls
- No exploration activity in Western Australia during the quarter
- Company relocates principal place of business to West Perth
- Quarter-end cash position stands at CAD$1.085 million
Strategic Investment Status Progress
Black Dragon Gold (ASX – BDG) has taken a significant step forward in advancing its flagship Salave Gold Project in Asturias, Spain. Following the introduction of new regional legislation aimed at fostering local development, the company applied for Salave to be designated a Strategic Investment Project. This status, governed by the Principality of Asturias’ Proyectos de Interés Estratégico Regional (PIER) framework, could unlock benefits that support the project’s development and regional economic impact.
During the June quarter, Black Dragon’s application progressed steadily, culminating in the announcement that a 20-day public consultation period will commence on 28 July 2025. This consultation focuses on the proposed change of land use from agricultural to industrial for the areas required to build the project’s surface infrastructure, a critical regulatory hurdle for the project’s advancement.
Community Support and Regional Expectations
Independent polling conducted in the Tapia de Casareigo municipality, where Salave is located, revealed encouraging community sentiment. More than 63% of respondents expressed support for the project, contingent on Black Dragon adhering to its legal and environmental commitments. This majority backing is notable given the community’s skepticism about future job opportunities in the region, with 64% indicating little confidence in local employment prospects without new investment.
The community’s clear message emphasizes the need for sustainable development, quality job creation, and alignment with municipal objectives. Black Dragon’s cooperation with local authorities and the SEKUENS Agency throughout the first half of 2025 has been instrumental in ensuring all relevant data was provided to support the project’s merits.
Operational and Corporate Updates
While the Salave project sees regulatory progress, Black Dragon reported no exploration activity during the quarter at its Ivan Well licence in Western Australia. This reflects a strategic focus on the Salave project as the company’s primary asset.
On the corporate front, Black Dragon officially shifted its principal place of business from the UK to West Perth, Western Australia, signaling a closer alignment with its operational focus and investor base. Financially, the company ended the quarter with CAD$1.085 million in cash, supported by financing inflows despite ongoing operational cash outflows. Related party payments, including director fees and salaries, amounted to CAD$111,000 during the period.
Tenement Holdings and Resource Confirmation
The company maintains a substantial portfolio of tenements in Spain, including the Salave concession and surrounding areas, totaling over 3,300 hectares. In Australia, the Ivan Well exploration licence covers 115 square kilometres. Black Dragon reaffirmed that there have been no material changes to the Salave Mineral Resource estimate, which remains one of the largest undeveloped gold projects in Europe with over 1.5 million ounces of gold in measured and indicated resources.
Looking ahead, the outcome of the public consultation and subsequent regulatory decisions will be pivotal for the project’s trajectory. Black Dragon’s ability to maintain community support and meet environmental and legal obligations will be critical as it seeks to transition Salave from exploration to development.
Bottom Line?
The next quarter will be crucial as Black Dragon navigates public consultation outcomes and regulatory approvals that could define Salave’s future.
Questions in the middle?
- Will the public consultation lead to approval of the land use change for Salave’s infrastructure?
- How will Black Dragon manage funding needs given ongoing operational cash outflows?
- What are the company’s plans for advancing exploration or development at Ivan Well in Western Australia?