DURANGO, Mexico, May 22, 2007 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce assay results from Drill Hole LM-12 at its Cerro Las Minitas Project in Durango, Mexico. Drill Hole LM-12 is the first hole to be drilled at Cerro Las Minitas in the 2007 drill season.
Drill Results from Drill Hole LM-12
Drill Hole LM-12 was drilled to a depth of 251.0 meters at an angle of -60 degrees to test the Puro Corazon, La Chiva, and other mineralized structures that were drill-discovered in 2006. Five intercepts cut in Drill Hole LM-12 returned grades of economic interest, indicating continuity of fault-controlled mineralization peripheral to the contact environment at Cerro Las Minitas. Reported intervals, including measured core lengths and undetermined core widths, are summarized below.
Highlights from Drill Hole LM-12 are:
* 102.80 meters downhole: 0.40 meters grading 1400 g/t (45.0 oz/ton) silver, 3.29% lead, 5.73% zinc, and 0.096% copper * 106.65 meters downhole: 1.00 meters grading 238 g/t (7.65 oz/ton) silver, 1.99% lead, 0.18% zinc, and 0.09% copper * 109.20 meters downhole: 2.20 meters grading 250 g/t (8.04oz/ton) silver, 2.38% lead, 2.49% zinc, and 0.12% copper Including: 0.60 meter grading 678 g/t (21.80 oz/ton) silver, 3.73% lead, 4.30% zinc, and 0.3% copper * 179.25 meters downhole: 0.95 meters grading 176 g/t (5.66 oz/ton) silver, 0.38% lead, 0.12% zinc, and 0.002% copper * 189.20 meters downhole: 1.50 metres grading 76 g/t (2.44 oz/ton) silver, 2.34% lead, 2.32% zinc, and 0.18% copper Weighted Average (Composite) Assay Values for Intercepts cut in Drill Hole LM-01-07 Interval From (m) To (m) Length (m) Ag (g/ton) ---------------------------------------------------------------- LM-12-01 102.80 103.20 0.40 1400 LM-12-02 106.65 107.65 1.00 238 LM-12-03 109.20 111.40 2.20 250 including 109.20 109.80 0.60 678 LM-12-04 179.25 180.20 0.95 176 LM-12-05 189.20 190.70 1.50 76 Interval Pb (%) Zn (%) Cu (%) ------------------------------------------------ LM-12-01 3.29 5.73 0.096 LM-12-02 1.99 0.18 0.092 LM-12-03 2.38 2.49 0.12 including 3.73 4.30 0.039 LM-12-04 0.38 0.12 0.002 LM-12-05 2.34 2.32 0.18
Interpretation of Drill Results
Drill Hole LM-12 is the first in a series of holes to be drilled into the Puro Corazon/La Chiva structures this year. Drill Hole LM-12 was drilled to further test the mineralization of those structures in areas which were drill-tested in 2006 and in additional areas which were not previously tested. Two distinct mineralized environments were explored by drill hole LM-12, the contact environment adjacent to the granodiorite intrusive and faults to the west of the contact zone that are intruded by granodiorite dikes. Intercepts LM-12-04 and LM-12-05 cut the contact environment adjacent to the granodiorite intrusive in the sulfide portion of the La Chiva mineralized zone
Drilling during 2006 revealed that Ag-Pb-Zn mineralization also occurs to the west of the contact zone in the Puro Corazon -- La Chiva area in fault breccias intruded by granodiorite dikes. Mineralization in that environment at Cerro Las Minitas was unknown before 2006 and has not been previously exploited. Intercepts LM-12-01 and LM-12-03 intersected that style of mineralization. Confirmation that the dike/fault environment shows both continuity as well as ore grades and thicknesses expands the discovery potential in the Cerro Las Minitas district considerably.
"We are pleased that our 2007 drill program shows continuity of mineralization in the environments west of the contact zone in the Puro Corazon/La Chiva area," commented Mr. Doug Wood, Chief Geologist at Cerro Las Mintas. "That mineralization was unknown to previous operators at Cerro Las Minitas and has yet to be exploited. Our drill discoveries are near the planned course of the Guadalupe Ramp and will be accessed by underground development as the progress of the ramp affords access to them. We are also very pleased with the grades we are encountering."
About Cerro Las Minitas
Cerro Las Minitas is comprised of 16 concessions covering 1423 Hectares. It is located 68 kilometers northeast of the City of Durango, Mexico and comprises the Cerro Las Minitas mining district, part of the prolific silver belt of the Sierra Madre Occidental. Silver Dragon Resources Inc. through its wholly owned Mexican Subsidiary Silver Dragon Mining de Mexico S.A. De C.V. acquired the exploration and mining rights to the property in March 2006.
About Silver Dragon Resources Inc.
Silver Dragon Resources Inc. is a mining and metal company focused on the exploration, acquisition, development and operation of silver mines in proven silver districts globally. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, have highly leveraged, out-of-the-money silver deposits, and/or producing properties with significant untapped exploration potential. It is management's objective to grow Silver Dragon into a significant silver producer by developing the Cerro las Minitas and the Erbahuo projects in Mexico and China. For more information, please visit the Company's website at: www.silverdragonresources.com (now available in Chinese).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.