DURANGO, Mexico, Oct. 28, 2008 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce that it has acquired its first mill. The mill is currently located in the Municipality of Chalchihuites, in the Mexican State of Zacatecas. It has an initial processing capacity of 50 tonnes per day, which can be expanded as the Company continues to develop its Cerros las Minitas Silver Project in Durango, Mexico. It will be dismantled, transported, and reassembled on the Company's Santo Ninyo concession, and is expected to become operational in the first quarter of 2009.
The mill was acquired at a price of US$245,000, including approximately US$20,000 for delivery and assembly. Silver Dragon paid US$25,000 upon signing, with the balance due in 6 months. Silver Dragon and its team of engineers performed due diligence on the mill, and determined that all major pieces of machinery were in excellent condition. The mill was originally built in 2005, but never went into production. Management moved quickly to acquire this mill at a favorable price when it became available.
Marc Hazout, President and CEO of Silver Dragon Resources Inc., commented, "The purchase of this mill will enable the Company to minimize its expenditures in Mexico and continue its three-phase exploration program to bring the Cerros las Minitas polymetallic property to a full feasibility stage, in a timely manner and with less capital expenditure."
Pictures of the floatation mill will be available on our Website at www.silverdragonresources.com.
About Cerro las Minitas
Cerro las Minitas is comprised of 15 concessions covering 1,413 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. (OTCBB:SDRG) is a mining and metal company focused on the acquisition, exploration, development and operation of silver mines in proven silver districts exclusively in China and Mexico. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, 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 Cerros las Minitas in Mexico and the nine Erbahuo properties in China. With operations in Mexico, the world's leading producer of silver, and in China, the world's largest consumer of silver, Silver Dragon is prepared to participate in China's increasing demand for silver. For more information, please visit the Company's website at: http://www.silverdragonresources.com (now available in Chinese).
The Silver Dragon Resources Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4242
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
The statements contained herein which are not historical, such as statements regarding the exploration and development of the Cerro las Minitas Silver Project, outcome and timing for the completion of further assays and metal amounts in partial assay results, are forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Information inferred from the interpretation of assay results and information concerning mineralization zones may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward-looking statements 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 future assay results, delays in testing and evaluation of assays, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.