LONDON, July 26, 2005 (PRIMEZONE) -- Dragon Gold Resources, Inc. (OTCBB:DRGO) ("Dragon Gold" or "the Company") is pleased to provide an update on the initial reconnaissance work carried out during May 2005 on its Baruun Khavtsal (L7422), Unegt Uul (L7423) and Yamaat (L7552) properties in Northwest Mongolia. The Company has an option to acquire 100% of these properties as disclosed on our 8-K filed on January 25th 2005.
Baruun Khavtsal
Baruun Khavtsal covers an area of 10,042 hectares and rests at 1,490 km north-west of Ulaanbaatar. The completed field reconnaissance work included over 300 km of geological routing and the sampling of 31 rock chips. In addition, 18 samples were taken for mineralogical and petrological testing, and 2 samples were tested for clay minerals content by XRD. Andesite, andesite-basalt intruded by granite and granodiorite are widely spread in the property. Marblized and dolomitized limestone occurs in the central and northern part of the property. Petrography analysis indicates argillization, sericitization, and actinolite-chlorite-epidote-limonite alteration in the quartz-diorite and andesite. Chalcopyrite and malachite occur locally with the predomination of silicification-epidote-metasomatic alteration.
Previously established Cu points were checked in the field and samples taken, returning Cu values of 0.36-0.65% in the central and western part of the property. Detailed sampling and mapping on a scale of 1:5,000 was conducted in two areas: "Chuluut" and "Shohoit," located at the northern and central parts of the property, respectively. In "Chuluut" four chip samples taken from small magnetite-hematite veins yielded gold values of 0.2 to 14.4 g/t and iron values of 28-38%, and two samples with Cu values of 0.16% and 0.48%. In "Shohoit," small quartz-hematite-limonite or magnetite veins were discovered with one sample out of eight, yielding a gold content of 1.22 g/t, and the rest returning insignificant Au and Cu values.
The argillization, sericitization and wide distribution of chlorite-epidote-actinolite alteration in diorite and andesite may indicate an altered porphyry system. The significant gold value and the positive gold and iron content in the magnetite-hematite vein and veinlets may indicate potentially a gold-magnetite skarn mineralization. Both features are of interest for further field investigation. Thus, Dragon Gold is considering an exploration program that would include soil and stream-sediment sampling, together with geological mapping.
Unegt and Yamaat
In addition to the reconnaissance of the Baruun Khavtsal license area, the company carried out brief field visits to the Unegt Uul and the Yamaat properties, which rest at 1,120 km and 1070 km west of Ulaanbaatar respectively. Fourteen chip samples were taken during a 120 km geological routing of the Unegt Uul and Yamaat properties. Assaying of those samples by SGS Mongolia returned insignificant gold and copper values except for one sample taken from Unegt Uul containing 1.92% Cu. The scope of the work on these 2 properties was limited and thus, the results do not rule out their potential to hold significant copper and precious metal deposits. No immediate field exploration programs, however, are being planned for these 2 properties this season.
Dragon Gold Resources, Inc. is a gold exploration company headquartered in London, United Kingdom. The Company focuses its exploration and minerals development activities in China and Mongolia. Both countries provide an ideal foreign investment climate given their untapped geological potential and favourable mining laws. Additional information can be found on the Company's website: http://www.dragon-gold.com.
On behalf of the Company;
Johannes Petersen
President
Safe Harbor for Forward-Looking Statements: This release contains certain "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995, including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in gold exploration, the availability of needed personnel and equipment for future exploration and development, fluctuations in gold prices, and general economic conditions.