ORLANDO, Fla., Dec. 1, 2004 (PRIMEZONE) -- Further to its news release on May 4, 2004, Dragon Environmental Corp. (Pink Sheets:DRVC) announced today that it has entered into a definitive agreement to acquire Refined Resources Inc. (hereafter referred to as "Refined") for 30 million shares of common stock of Dragon.
Refined is a private junior resources company formed to pursue opportunities in the mineral resource sector with a specific view to exploit and develop promising base metal exploration and development projects in the People's Republic of China. Under a joint venture agreement with a resource company listed on Canada's TSX Venture Exchange, Refined has secured exploration and development rights to a mineral resource concession area located in the Xinjiang Uighur Autonomous Region, China.
These initial resource property concession rights, with a total area of approximately 30 square kilometers, are located closely on trend with the Kalatongke copper-nickel mine, located in northwesternmost China, in the Xinjiang Uighur Autonomous Region, at about 46o45'08" north latitude and 89o41'30" east longitude near the borders of Mongolia, Russia, and Kazakhstan.
The Kalatongke nickel/copper deposit is located approximately 38 kilometres east of Fuyun City in the Altay Prefecture, Xinjiang, China and adjoins the Kalatongke nickel/copper mine. According to a summary report provided by China's Ministry of Land and Resources, a second phase upgrade of the production facilities at the minesite was completed in 2001 and sulfide production reportedly reached an annual rate of 150,000 tons of ore. High-grade nickel matte and copper concentrate is produced at an annual rate of 7,000 to 8,000 tons.
A total of nine ore bodies are reported with an aggregate total reserve of 429,300 tons of copper, 245,100 tons of nickel, 9,430 tons of cobalt, 5,690 kilograms of gold, 2,843 kilograms of platinum, and 3,714 kilograms of palladium. Ore bodies are classified into five types, with the three most important being (I) ultra-rich, grading 2.12% to 9.73% copper and 3.53% nickel, (II) moderate, grading 1.40% copper and 0.38% nickel, and (III) low grade, grading 0.51% copper and 0.82% nickel. The Kalatongke mine has received China's highest rating for nickel deposits based on its grades.
Kalatongke was evaluated for SX-EW copper potential by Barrick Power Corporation, a joint venture between Barrick Gold Corporation and Canada's Power Corp., in the fall of 1994 who found that copper-nickel ore occurs within the Tian Shan-Hinggan fault/fold system along the Irtysh Fault separating the Altay fold belt to the north from the Junggar fold belt to the south. The copper-nickel ore at Kalatongke is believed to have been formed by magmatic segregation, similar to the giant Sudbury deposit of Canada and the supergiant Norilsk deposit of Russia. Deposits of this type, such as Sudbury, contain most of the world's supply of nickel. In these deposits, ore minerals crystallize directly from an ultramafic parent magma by fractional crystallization during magmatic differentiation. As the ore minerals crystallize, they settle out of the melt in distinct layers or bands parallel to layering in the intrusive.
In light of its entry in the mineral resource industry and its impending closing of its acquisition of Refined, Dragon is in the process of changing its name to Dragon Mineral Resources Inc.
For more information regarding Dragon or its projects, please contact Basil J. Meecham, President at 407-355-0980.
Contact: Dragon Environmental Corp.
Basil J. Meecham
5512 Palm Lake Circle,
Orlando, Fl 32819
Tel: 407-355-0980
Certain matters discussed in this news release are "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words such as Dragon "expects," "anticipates" or words of similar import. Similarly, statements that describe the Company's plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, which could cause actual results to differ materially from those anticipated. Although Dragon believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that the expectations will be attained. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating any forward-looking statements. Forward-looking statements made herein are only made as of the date of this news release and Dragon does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.