Today, on 26th April 2019, Raiden Resources Limited (ASX: RDN) announced that it has signed an earn-in and option to purchase agreement with Ridge Consulting OOD of an epithermal gold project (Vuzel project) purchase agreement in Bulgaria. Ridge is a private Bulgarian geological consultancy and project generation company. It is the 100% owner of the Vuzel license, which has been awarded to it by the Bulgarian Ministry of Energy. Ridge is in the final stages of executing the exploration agreement with the Bulgarian authorities, which will allow the commencement of exploration activities. The company is hopeful that this process will be completed soon, allowing the company to commence the target definition on the project.
The Vuzel Project
The project is in the Eastern Rhodope mineral region of Southeast Bulgaria, around 30 kilometres from the Greek border in a geological district, which hosts several operating gold mines, including Dundee Precious Metals’ Ada Tepe (Kumovgrad) mine, which has achieved the first production of gold concentrate in March 2019. This area is part of the West Tethyan magmatic and metallogenic belt, which within Bulgaria extends for around 500 kilometres from Serbia to northwest Turkey. The Eastern segment of that belt is dominated by the Rhodope Massive, which consists of Precambrian to Mesozoic metamorphic basement and Palaeogene post-collisional magmatic and volcano-sedimentary cover. The Rhodope basement consists of metamorphic rocks, including gneisses and migmatites. The age of metamorphism and collision is interpreted as Cretaceous. Volumetrically minor Upper Cretaceous plutons intrude the metamorphic basement.
The project is expected to produce an avg. of 0.1 million oz of gold contained in concentrate per year for the first 5 years of production, with a life of mine average of around 0.85 million oz at a USD 404 per oz cash cost. The geological setting of the Vuzel project, specifically, the conglomerate hosted low sulphidation gold mineralisation, with associated higher-grade zones is comparable to Ada Tepe (Kumovgrad), and the company will be targeting similar styles of mineralisation.
The company’s Managing Director, Dusko Ljubojevic stated that the signing of this purchase agreement over the Vuzel project is a significant milestone for the company and represents the first step on executing their strategy of securing additional highly prospective projects in the prolific Western Tethyan belt. The management is highly excited by the geological setting within the project and believes that the Vuzel project has the potential to host significant gold mineralisation, such as at the Ada Tepe mine, which is located within 30 kilometres of the Vuzel permit in Bulgaria.
At the time of writing (on 26th April 2019 AEST 01:46 PM), the stock of Raiden Resources was trading at $0.012, up 20% with a market capitalisation of ~$4.1 million. Today, it touched day’s high at $0.012, with a daily volume of 1,532,266. Its 52 weeks high price stands at $0.025 and 52 weeks low price at $0.007, with an average volume of 1,826,767. Its absolute return for the past five years, one year, six months, and three months are -99.66%, -54.55%, -16.67%, and 25%, respectively.