- Black Dragon Gold (BDG) enters the Western Australian gold exploration market with the acquisition of privately held Marlee Gold
- Marlee Gold owns the Padbury Gold and Ivan Well projects in WA, which represent 481 square kilometers of mineral exploration licenses
- The consideration consists of an exclusivity fee of $10,000 for due diligence, and $70,000 in cash, $70,000 in stock and one million unlisted options at the end
- Black Dragon will undertake remote sensing and geophysical data integration and interpretation, regional reconnaissance and mapping, and soil geochemistry
- Black Dragon shares flat at market close, last traded at 3.9 cents
Black Dragon Gold (BDG) entered the WA gold exploration market through the acquisition of privately held Marlee Gold.
Marlee Gold owns the Padbury Gold and Ivan Well projects in WA, which represent 481 square kilometers of mineral exploration licenses.
Consideration for the acquisition consists of an exclusive due diligence fee of $10,000 (which has already been paid), and $70,000 in cash, $70,000 in stock and one million unlisted options at the end.
It also consists of a 1.5% net smelter royalty and deferred consideration of $1 million in cash or stock on Black Dragon announces a mineral resource estimate of at least 500,000 ounces.
An additional $1 million in cash or stock will be issued against an additional 500,000 ounce mineral resource for the projects.
Black Dragon will undertake the integration and interpretation of remote sensing and geophysical data, regional reconnaissance and mapping, and soil geochemistry.
The Padbury project is located approximately 90 kilometers north-northwest of Meekatharra and consists of gold targets hosted in granitoids with extensive gold showings over a 15 kilometer by seven kilometer area.
It has not been the subject of modern exploration techniques other than localized prospecting.
The Ivan Well project is located approximately 160 kilometers north-northeast of Wiluna in the northern Goldfields region of WA.
It consists of a largely under-explored part of the Earaheedy Basin with the Geological Survey of Western Australia’s heavy mineral database showing over 24 occurrences of gold loss.
Although the source of the gold mineralization remains to be determined, it is believed to be from the folded shales of the Frere Formation.
“We have completed a thorough review and due diligence process of several new precious metals joint venture opportunities in Australia,” Chief Executive Gabriel Chiappini said.
“The projects compiled by Marlee Gold show an extensive but untested gold anomaly and present a significant opportunity for a new discovery.
“The addition of Marlee Gold complements the ongoing development work we are undertaking on our +1.5 million ounce Salave gold project in Spain.”
Black Dragon shares were flat at market close, last trading at 3.9 cents