BEIJING, March 3, 2009 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce further progress from recently-completed tunneling and trenching work performed at its Dadi Silver-Lead-Zinc Polymetallic project located in Inner Mongolia, northern China (See press release of January 26, 2009). Highlights of the latest discoveries are as follows:
* Mineralization zone No. 2, one of the four mineralization
zones discovered at Dadi, is 300m in length with a 4.2 meter
average width along the NW strike direction, as has been
revealed by surface trenching.
* Assay results of surface sampling (within trenches) of
mineralization zone No.2 show average grades of 345.6g/t Ag,
1.88% Pb and 0.65% Zn.
* Underground tunneling exploration (tunnel PD02), at 30 - 65
meters below the surface, has revealed the underground
extension of mineralization zone No. 2 to be 235 meters in
length along the NW strike and remains open in both
directions
* Assay results of underground sampling show highest grades of
2,938g/t Ag, 29.64% Pb, and 25.0% Zn, with average grades of
657.37g/t Ag, 8.06% Pb, and 3.97% Zn (from 21 sampling
positions) in the NW ore drift and 289.89g/t Ag, 3.43% Pb,
and 1.93% Zn in the SE ore drift (from 13 sampling positions),
respectively.
* The industrial potential of Ag-Pb-Zn mineralization zone
No. 2 is significant.
During the 2008 exploration season, four Ag-Pb-Zn mineralization zones occurring within the Upper Jurassic Baiyingaolao formation volcanic series have been identified at Dadi. Among them, mineralization zone No. 2, located in the southeast part of the property and revealed by trenches No. 23 ~ No. 28 (6 trenches with 50 meter interval distance), occurs at 310 degrees strike and dips to the NE at an angle of 71 degrees. Based on the discovery of surface mineralized bodies, hosting rock alteration, and two parallel sub-mineralization zones, the total strike length of mineralization zone No. 2 could reach over 600 meters.
Assay results of surface sampling within the trenches show the highest grades to be 2,975g/t Ag, 7.25% Pb, and 1.58% Zn, and average grades of 345.6g/t Ag, 1.88% Pb, and 0.65% Zn.
The tunneling exploration project was conducted from November 2008 to January 2009, and will be resumed shortly in order to test for further underground extensions of mineralization zone No. 2. The latest assay results show significant Ag-Pb-Zn mineralization (see Table 1 below, as well as Silver Dragon's January 26, 2009 press release).
Tunnel No.02, or PD02 (entrance position at longitude 4802791, latitude 20551815 and elevation 1,424m), commenced with a 95 meter-long transverse drift perpendicular to and across the mineralization zone along the NE40 degrees direction. From 61.2 meters to 68.0 meters of the transverse drift, a 6.8 meter-wide primary (sulfide) mineralized body was revealed. The highest grades reach 818 g/t Ag, 4.83% Pb, and 5.5% Zn, with average grades of 441g/t Ag, 5.69% Pb, and 1.2% Zn. At this position, two ore drifts (along the mineralization zone) are dipping toward the northwest and southeast, respectively.
To date, the ore drift toward the northwest direction is 134 meters long. Underground samples were taken at the digging face. The distance between sampling positions ranges from 4 meters to 10 meters. Assay results show the highest grades to be 2,938g/t Ag, 29.64% Pb, and 25.0% Zn at a 93-meter digging face sampling position. The average grades of underground samples from 21 digging face positions are 657.37g/t Ag, 8.06% Pb, and 3.97%Zn.
Also to date, the ore drift toward the Southeast direction is 114 meters long. Assay results show the highest grades to be 1,293g/t Ag, 15.04% Pb, and 4.9% Zn at a 16.2 meter digging face sampling position. The average grades of underground samples from 13 digging face positions are 289.89g/t Ag, 3.43% Pb, and 1.93%Zn.
The underground exploration project revealed that at the 1,424 meter elevation level (30 meters to 65 meters below the surface), a 235 meter-long Ag-Pb-Zn fully mineralized body is continuous and stable along mineralization zone No. 2. The mineralization intensity is stronger in the northwest part of the mineralization zone. The underground work also confirmed that the fracture filling type Ag-Pb-Zn hydrothermal mineralization occurs along a NW strike fracture system, and has a 30 meter to 65 meter dipping extension from the surface (based on current exploration results), which should have further extensions along strike and to depth. A drilling program is expected to commence in April of 2009 to further explore this region at depth in an effort to extend the Ag-Pb-Zn resources discovered in this highly mineralized zone.
Dr. Tiebing Liu, P. Geo., Silver Dragon's geological advisor, stated "We have continued to realize very exciting results from our Dadi tunneling and trenching program, yielding an increased belief in the economic potential of the property. We look forward to a more detailed exploration program in 2009, including additional tunneling, trenching, and drilling to further add to the significant mineralized material we have delineated at Dadi to date."
Dr. Tiebing Liu, P. Geo., a "qualified person" within the meaning of NI 43-101, reviewed and participated in the preparation of the technical information disclosed in this news release.
Table 1 Assay Results of Underground Samples in Tunnel PD02,
East Mineralized Area of Dadi
---------------------------------------------------------------------
Digging face
sampling position (m) Assay results
---------------------------------------------------
Sample Sampling Ag
Drift number From to length (g/t) Zn(%) Pb(%)
---------------------------------------------------------------------
DH651 9.4 9.4 0.6 11.2 0.042 0.13
--------------------------------------------------------------
DH652 26.8 27.8 1.0 2.5 0.040 0.069
--------------------------------------------------------------
DH653 27.8 28.8 1.0 7.8 0.085 0.21
--------------------------------------------------------------
PD02 DH654 28.8 30.0 1.2 2.2 0.040 0.047
trans- --------------------------------------------------------------
verse DH655 59.0 59.0 0.4 3.5 0.22 0.052
Drift --------------------------------------------------------------
20 DH656 61.2 62.2 1.0 71.4 0.46 1.10
--------------------------------------------------------------
DH657 62.2 63.2 1.0 74.8 0.45 1.68
--------------------------------------------------------------
DH658 63.2 64.2 1.0 20.5 0.45 0.34
--------------------------------------------------------------
DH659 64.2 65.2 1.0 386 1.30 2.63
--------------------------------------------------------------
DH660 65.2 66.2 1.0 682 2.07 9.90
--------------------------------------------------------------
DH661 66.2 67.2 1.0 1704 2.40 22.15
--------------------------------------------------------------
DH662 67.2 68.0 0.8 80.4 1.30 1.15
--------------------------------------------------------------
DH692 68.0 69.0 1.0 6.5 0.28 0.11
--------------------------------------------------------------
DH694 60.2 61.2 1.0 4.4 0.061 0.078
--------------------------------------------------------------
DH665 6.7 6.7 1.0 11.8 0.40 0.18
---------------------------------------------------------------------
DH666 6.7 6.7 1.0 315 2.06 1.65
--------------------------------------------------------------
DH669 11.4 11.4 0.7 1.2 0.058 0.014
--------------------------------------------------------------
DH670 11.4 11.4 1.0 126 1.69 0.86
--------------------------------------------------------------
PD02 DH671 11.4 11.4 0.3 519 6.27 3.19
NW --------------------------------------------------------------
ore DH674 15.5 15.5 1.0 7.0 0.16 0.054
drift --------------------------------------------------------------
01 DH675 15.5 15.5 0.8 209 1.22 1.03
--------------------------------------------------------------
DH678 28.0 28.0 0.8 708 3.76 4.18
--------------------------------------------------------------
DH679 28.0 28.0 0.8 818 5.50 4.83
--------------------------------------------------------------
DH680 28.0 28.0 0.3 16.5 0.78 0.18
--------------------------------------------------------------
DH683 35.5 35.5 1.1 9.8 0.38 0.11
--------------------------------------------------------------
DH684 35.5 35.5 0.9 158 2.32 1.74
--------------------------------------------------------------
DH685 38.7 38.7 1.4 6.5 0.17 0.082
--------------------------------------------------------------
DH686 38.7 38.7 0.6 641 4.32 3.70
--------------------------------------------------------------
DH687 48.6 48.6 0.3 5.8 0.44 0.044
--------------------------------------------------------------
DH690 48.6 48.6 0.6 42.8 1.32 0.52
--------------------------------------------------------------
DH691 48.6 48.6 1.1 117 4.87 0.78
--------------------------------------------------------------
DH695 59.3 59.3 1.0 323 6.15 2.37
--------------------------------------------------------------
DH696 59.3 59.3 1.0 216 1.99 1.61
--------------------------------------------------------------
DH702 64.0 64.0 1.0 3.8 0.11 1.08
--------------------------------------------------------------
DH703 64.0 64.0 1.0 452 1.28 2.68
--------------------------------------------------------------
DH707 71.5 71.5 1.0 2.2 0.040 0.018
--------------------------------------------------------------
DH708 71.5 71.5 1.0 10.2 0.30 0.16
--------------------------------------------------------------
DH709 74.7 74.7 1.0 777 4.64 7.70
--------------------------------------------------------------
DH710 74.7 74.7 1.0 130 0.88 0.88
--------------------------------------------------------------
DH715 81.0 81.0 1.0 917 5.12 14.18
--------------------------------------------------------------
DH716 81.0 81.0 1.0 14.5 1.14 0.18
--------------------------------------------------------------
DH719 86.2 86.2 1.0 56.8 0.43 0.72
--------------------------------------------------------------
DH720 86.2 86.2 1.0 938 5.37 13.14
--------------------------------------------------------------
DH724 93.0 93.0 0.9 372 0.77 0.99
--------------------------------------------------------------
DH725 93.0 93.0 0.8 2636 4.94 34.85
--------------------------------------------------------------
DH726 93.0 93.0 0.3 102 1.59 0.99
--------------------------------------------------------------
DH727 99.0 99.0 1.0 133 1.62 1.35
--------------------------------------------------------------
DH728 99.0 99.0 1.0 1326 4.26 17.14
--------------------------------------------------------------
DH731 106.0 106.0 1.3 13.2 0.48 0.16
--------------------------------------------------------------
DH732 106.0 106.0 0.7 837 6.40 5.64
--------------------------------------------------------------
DH743 110.6 110.6 0.6 164 1.16 1.20
--------------------------------------------------------------
DH744 110.6 110.6 1.1 1428 7.39 23.02
--------------------------------------------------------------
DH745 110.6 110.6 0.3 268 2.98 3.44
--------------------------------------------------------------
DH748 117.1 117.1 1.0 704 5.33 3.32
--------------------------------------------------------------
DH749 117.1 117.1 1.0 1088 5.65 20.39
--------------------------------------------------------------
DH900 122.0 122.0 1.1 480 3.22 4.63
--------------------------------------------------------------
DH901 122.0 122.0 0.9 1465 8.68 18.99
--------------------------------------------------------------
DH904 129.5 129.5 0.9 182 1.22 1.37
--------------------------------------------------------------
DH905 129.5 129.5 0.8 2938 25.00 29.64
--------------------------------------------------------------
DH906 129.5 129.5 0.3 834 8.78 6.23
--------------------------------------------------------------
DH909 138.3 138.3 1.1 1844 2.92 16.09
--------------------------------------------------------------
DH910 138.3 138.3 0.9 102 0.90 1.08
---------------------------------------------------------------------
DH663 5.0 5.0 1.0 566 3.22 8.39
--------------------------------------------------------------
DH664 5.0 5.0 1.0 276 2.26 2.52
--------------------------------------------------------------
DH667 11.0 11.0 1.0 1.2 0.015 0.006
--------------------------------------------------------------
DH668 11.0 11.0 1.0 1.2 0.03 0.008
--------------------------------------------------------------
DH672 18.3 18.3 1.0 1.2 0.024 0.013
--------------------------------------------------------------
PD02 DH673 18.3 18.3 1.0 1.2 0.012 0.01
ore --------------------------------------------------------------
drift DH687 7.1 8.1 1.0 5.8 0.44 0.044
2-1 --------------------------------------------------------------
DH688 8.1 9.0 0.9 1.2 0.075 0.008
--------------------------------------------------------------
DH676 27.0 27.0 1.0 1.2 0.028 0.018
--------------------------------------------------------------
DH677 27.0 27.0 1.0 1.2 0.016 0.010
--------------------------------------------------------------
DH681 34.4 34.4 1.0 2.0 0.028 0.011
--------------------------------------------------------------
DH682 34.4 34.4 1.0 1.2 0.016 0.006
---------------------------------------------------------------------
DH693 11.2 11.2 1.2 1.4 0.24 0.037
--------------------------------------------------------------
PD02 DH697 10.8 11.8 1.0 25.0 0.89 0.36
trans- --------------------------------------------------------------
verse DH698 11.8 12.8 1.0 298 3.51 2.53
drift --------------------------------------------------------------
08-2 DH699 12.8 13.8 1.0 281 6.65 3.14
--------------------------------------------------------------
DH700 13.8 14.8 1.0 142 1.98 1.75
--------------------------------------------------------------
DH701 14.8 15.8 1.0 102 0.61 0.034
--------------------------------------------------------------
DH704 15.8 16.8 1.0 308 4.80 2.78
---------------------------------------------------------------------
DH705 4.2 4.2 1.0 45.0 1.22 0.26
--------------------------------------------------------------
DH706 4.2 4.2 1.0 20.2 0.36 0.22
--------------------------------------------------------------
DH711 9.4 9.4 1.0 19.5 0.74 0.30
--------------------------------------------------------------
DH712 9.4 9.4 1.0 76.5 1.16 0.80
--------------------------------------------------------------
DH717 16.2 16.2 1.0 1293 4.90 15.44
--------------------------------------------------------------
DH718 16.2 16.2 1.0 69.8 0.42 0.76
--------------------------------------------------------------
DH721 23.0 23.0 0.7 51.0 0.67 0.58
--------------------------------------------------------------
DH722 23.0 23.0 0.7 52.8 0.72 0.67
--------------------------------------------------------------
DH723 23.0 23.0 0.6 464 3.30 4.36
--------------------------------------------------------------
DH729 31.4 31.4 1.0 8.5 0.075 0.12
--------------------------------------------------------------
DH730 31.4 31.4 1.0 33.0 0.76 0.76
--------------------------------------------------------------
DH733 39.0 39.0 1.0 7.8 0.21 0.082
--------------------------------------------------------------
DH734 39.0 39.0 1.0 3.0 0.28 0.044
--------------------------------------------------------------
DH735 44.3 44.3 0.5 95.8 1.03 1.16
--------------------------------------------------------------
PD02 DH736 44.3 44.3 0.8 58.5 1.01 0.64
SE ore --------------------------------------------------------------
drift DH737 44.3 44.3 0.7 424 1.40 1.16
2-2 --------------------------------------------------------------
DH738 51.3 51.3 0.3 141 1.14 0.82
--------------------------------------------------------------
DH739 51.3 51.3 1.3 78.2 0.89 0.82
--------------------------------------------------------------
DH740 51.3 51.3 0.4 600 2.98 2.76
--------------------------------------------------------------
DH741 62.0 62.0 1.0 211 0.52 2.12
--------------------------------------------------------------
DH742 62.0 62.0 1.0 292 0.90 2.94
--------------------------------------------------------------
DH746 68.4 68.4 1.2 62.0 0.22 0.36
--------------------------------------------------------------
DH747 68.4 68.4 0.8 64.8 1.25 0.82
--------------------------------------------------------------
DH902 74.2 74.2 1.0 63.2 0.96 1.20
--------------------------------------------------------------
DH903 74.2 74.2 1.0 4.5 0.092 0.052
--------------------------------------------------------------
DH907 80.5 80.5 1.0 61.8 0.86 0.71
--------------------------------------------------------------
DH908 80.5 80.5 1.0 12.8 0.10 0.12
--------------------------------------------------------------
DH911 89.2 89.2 1.0 6.0 0.032 0.056
--------------------------------------------------------------
DH912 89.2 89.2 1.0 5.0 0.038 0.046
---------------------------------------------------------------------
Notes: In transverse drift, channel sampling ((3cm)(10cm)(sample length)) is operated along the right or left wall of the drift. In ore drift, the digging face of the tunnel is 2m wide. The channel sampling ((3cm)(10cm)(sample length)) is operated across the central part of the digging face. At each digging face sampling position, two or three samples are taken. All assay data were made by ordinary chemical methods at Yanjiao Central Laboratory of North China Nonferrous Geological Survey Bureau.
About Dadi Silver-Lead-Zinc Polymetallic Project
Dadi is one of the eight exploration properties of Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company which holds exclusive exploration rights to these properties located in the prolific Erbahuo Silver District in Inner Mongolia, China. Silver Dragon has a 40% ownership interest in Sino-Top. The Dadi exploration area, covering 12.48 square kilometers, is located in the Mesozoic volcanic basin in Keshiketeng County, Inner Mongolia, China.
Geologically, the Dadi property is located in the south edge of the Daxinganling metallogenic belt and at the joint between the Daxinganling mountain chain (with north-east direction) and the Xilamulunhe structure belt which trends in an east-west direction. These two structural belts are also two major ore-forming belts of China. This entire tectonic setting provides a dynamic geologic environment for the development of mineralizing systems. The major exposed rocks in the Dadi Property are Upper Jurassic Baiyinggaolao Formation dacitic tufaceous lava, dacitic tuff, rhyolitic tuff, and tufaceous sendstone and conglomerate, among which dacitic tufaceous lava and dacitic tuff are the main host rocks of mineralization. Sino-Top completed 702 meters of tunneling at Dadi in the 2008 exploration season.
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 are 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 Erbahuo projects in Mexico and China respectively. For more information, please visit the Company's website at: 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 Dadi 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 mineralized 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.