BEIJING, July 7, 2010 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce recent results from the ongoing 2010 drilling program at its Dadi property in Inner Mongolia, Northern China. Dadi is a silver-lead-zinc polymetallic project owned by Sanhe Sino-Top Resources & Technologies, Ltd. ("Sino-Top), of which Silver Dragon Resources Inc. has a 40% equity interest.
Highlights of the latest discoveries at Dadi include the following:
- Significant silver, lead and zinc mineralization is continuously being revealed by drilling, tunneling, and trenching.
- Three mineralization intervals have been revealed by drill hole ZK1203. The third mineralized interval is 4.7m wide with average grades of 279 g/t Ag, 2.5% Pb, and 4.6% Zn. The highest grades of this interval are 708 g/t Ag, 6.1% Pb, and 8.0% Zn (1.2m wide).
- In the PD2 mineralization zone, three transverse drifts revealed a new mineralized body . The widest part of the mineralized body at transverse drift NCM01 is 21.4m with average grades of 133.5 g/t Ag, 1.3% Pb, and 3.1% Zn. Within this interval, the richest mineralization is 1,875 g/t Ag, 13.1% Pb, and 20.2% Zn (0.9m wide).
- Surface trench No. 0102 revealed a significant mineralized interval with 6.1m width and average grades of 347.7 g/t Ag, 6.0% Pb, and 0.4% Zn. The highest grades in this interval are 1,272 g/t Ag, 19.0% Pb, and 1.1% Zn (1m wide).
- Sino-Top's management intends to develop the Dadi property into a producing mine in 2011.
Since April 2010, a comprehensive exploration program consisting of drilling, tunneling, and trenching on the Dadi property has been carried out successfully. To date, a total of 3,684m of drilling (11 holes) has been completed in this program, with the assay results for drill holes ZK1203 and ZK0804 currently available. In addition, 653m of tunneling has been completed this year, including a long transverse drift (NCM01) that is 360m long and connects the PD1 mineralization zone and the PD2 mineralization zone, as well as two other short transverse drifts (NCM00 and NCM03). All three drifts are located at the 1,384m elevation level. Up to now, significant mineralization of silver, lead, and zinc has been revealed by these new exploration projects, which are anticipated to prove up further resources and reserves at Dadi.
1. The latest drilling results
Drill hole ZK1203 is located at exploration line No. 12, and is 240m deep. Three mineralization intervals of silver, lead, and zinc were found. The first mineralized interval is from 70.2m to 77.3m (7.1m wide) with average grades of 39.2 g/t Ag, 0.6% Pb, and 1.4% Zn; the second is from 79.5m to 82.8m (3.3m wide) with average grades of 137.8 g/t Ag, 0.9% Pb, and 3.1% Zn; the third is from 88.3m to 93m (4.7 wide) with average grades of 278.6 g/t Ag, 2.4% Pb, and 4.6% Zn. The highest grade of the drill core is at the 91.8m to 93m depth, yielding 708 g/t Ag, 6.1% Pb, and 8.0% Zn.
Drill hole ZK0804 is located at exploration line No. 8, and is 470m deep. This drill hole hit four zinc mineralization intervals at the 68.4 m, 112.6 m, 240.4 m, and 243.7m depths, yielding respective zinc contents of 0.5% (1m wide), 0.4% (1.5m wide), 6.9% (0.6m wide) and 3.3% (0.5m wide).
2. Tunneling exploration achievements
In 2009, exploration on the PD2 mineralization zone mainly comprised tunneling work at the 1,424m elevation level and drilling to reveal the mineralized body. Since the start of the 2010 exploration season, a new ore drift (PD2 YM1) and three transverse drifts (PD2 NCM00, PD2 NCM01, and PD2 NCM03) at the 1,384m elevation level have been operated. Consequently, the PD2 mineralization zone is now controlled by surface trenching, a 1,424m level tunnel, and a 1,384m level tunnel. Judged from the tunneling results alone, the total dipping depth of the PD2 mineralization zone is well over 100 meters.
The assay results of the three transverse drifts at the 1,384m level show strong mineralization of silver, lead, and zinc, and the width of the mineralization zone is much greater than in the areas closer to the surface.
At the NCM00 transverse drift, the mineralized interval from 7.8m to 11.2m (3.4m wide) has average grades of 487.4 g/t Ag, 3.9% Pb, and 4.9% Zn. The highest grades are 2,408 g/t Ag, 18.3% Pb, and 24.6% Zn within a 0.6m sample length (see Table 3 and Fig. 1).
Please visit www.silverdragonresources.com for full press release with tables and figures.
At the NCM01 transverse drift, which is a long drift that connects the PD1 and PD2 mineralization zones, five mineralized intervals have been revealed. The first is from depths of 160.2m to 161.9m (1.7m wide) with average grades of 107.5 g/t Ag, 1.1% Pb, and 0.5% Zn. The second is from 204.6m to 206.4m (1.8m wide) with average grades of 143.6 g/t Ag, 3.0% Pb, and 0.7% Zn. The third is from 284.6m to 288.9m (4.3m wide) with average grades of 14.1 g/t Ag, 0.3% Pb, and 0.6% Zn. The fourth is from 318.8m to 320m (1.2m wide) with average grades of 74.6 g/t Ag, 0.9% Pb, and 0.2% Zn. The above four mineralized intervals are new findings, which constitute new mineralized bodies occurring between the PD1 and PD2 mineralization zones.
The fifth mineralized interval is from 331.1m to 352.5m (21.4m wide), with average grades of 133.5 g/t Ag, 1.3% Pb, and 3.1% Zn. Within this interval, the richest mineralizations are from 349.1m to 350m (0.9m wide) and from 350m to 350.9m (0.9m wide), grading 1,875 g/t Ag, 13.1% Pb, and 20.2% Zn and 832 g/t Ag, 8.9% Pb, and 24.7% Zn, respectively (Table 4). This mineralized interval is the extended part of the main PD2 mineralization zone.
At the NCM03 transverse drift, the mineralized interval is from 23.8m to 34.6m (9.8m wide), at average grades of 11.8 g/t Ag, 0.4% Pb, and 1.4% Zn (Table 5).
Please visit www.silverdragonresources.com for full press release with tables and figures.
3. Important findings by surface trenching
Surface trench No. TC0102 is located in the northwest part of the PD2 mineralization zone. Assay results show a significant mineralization interval. From 16.7m to 22.8m (6.1m wide), the average grades are347.7 g/t Ag, 6.0% Pb, and 0.4% Zn. The highest sample grades are 1,272 g/t Ag, 19.0% Pb, and Zn 1.1% (1.0m wide) and 1,098 g/t Ag, 21.5% Pb, and 0.9% Zn (0.6m wide), respectively (Table 6).
Please visit www.silverdragonresources.com for full press release with tables and figures.
In summary, significant silver, lead, and zinc mineralization is continuously being revealed by drilling, tunneling and trenching at the Dadi property. The detailed exploration program will be completed later this year, and the annual geological report and a metallurgical testing report will subsequently be provided to form the basis for a mining license application. Sino-Top's management anticipates that the Dadi property will be constructed into a silver, lead, and zinc producing mine in 2011.
The ongoing drilling and tunneling projects continue to be implemented at Dadi and the new exploration results will be reported as the data becomes available.
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.
Notes:
- The core sampling method is sawing the core in half for assaying, with the other half being put in a storage box with a red marker. The length of each sample varies from 0.5m to 1m depending on mineralization and lithology. In a drift or trench, the channel sampling method (10cm x 3cm x sample length) is used.
- The industrial cutoff grades are 80 g/t Ag, 0.7% Pb and 1% Zn.
- All assay data were made by ordinary chemical method in Yanjiao Central Laboratory of North China Nonferrous Geological Survey Bureau
About the Dadi Polymetallic Silver Property
Dadi is one of the six exploration properties of Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company that holds exclusive exploration rights to these properties, located in the prolific Erbahuo Silver District in Inner Mongolia, China. Silver Dragon Resources Inc. 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 sandstone and conglomerate, among which dacitic tufaceous lava and dacitic tuff are the main host rocks of mineralization.
An independent review of the Dadi property was completed in Q1-2010, with the results presented in a Technical Report prepared by Southampton Associates Inc. of Toronto, Canada (see press release of May 6, 2010).
About Sino-Top – China Mining 2009 Award Winner
Sanhe Sino-Top Resources & Technologies, Ltd. ("Sino-Top") was originally incorporated in 2003 as a Chinese company wholly owned by Huaguan Industrial Corp. ("HIC"), a subsidiary of the state-owned North China Geological Exploration Bureau. Sino-Top became an American-Chinese joint venture in 2005. Silver Dragon Resources Inc. acquired Sino-Top in 2006, and currently owns 40% of Sino-Top after having sold 50% of its ownership interest to its Chinese partners. The Chinese side, led by Gansu Shengda Group Ltd. ("Shengda"), at 52%, and HIC, at 8%, collectively own 60% of Sino-Top. Sino-Top holds exclusive exploration and development rights to six properties in northern China (Inner Mongolia), covering a total area of 139 km2. Sino-Top won the prestigious Prospector/Explorer of the Year Award for its Dadi Silver Polymetallic Project at the China Mining Congress & Expo 2009 held in Tianjin, China, during October 20-22, 2009.
About Silver Dragon Resources Inc.:
Silver Dragon Resources Inc. is a mining and metals 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 Cerros las Minitas project in Mexico, its six Sino-Top properties in China ( particularly Dadi and Laopandao), and its Erbahuo Silver mine (via its Chifeng Silver Dragon subsidiary), also in China. 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 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.