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Newsroom - Clients - SDRG
The following news and investment research items reflect some of the recent business activity for selected clients of Empire Relations Group, Inc. Additional information for investment research can be found in the featured clients section. News and investment research are for informational purposes only.
Silver Dragon Resources Inc
Silver Dragon Report of Development and Exploration Program at Erbahuo Silver Project, Northern China
BEIJING--(MARKET WIRE)--Jun 20, 2006 -- Silver Dragon Resources Inc. (OTC BB:SDRG.OB - News) today announced results of the comprehensive work program underway at the Sino-Top projects in the Erbahuo Silver District in Northern China. Silver Dragon has also advanced a further payment of US$96,000 to Sanhe-Sino-Top Resources & Technologies, Ltd. ("Sino-Top") pursuant to Silver Dragon's commitment under the Asset Purchase Agreement dated March 21, 2006 among Silver Dragon, Sino-Top and Sino Silver Corp.
Silver Dragon has entered into an agreement to acquire a 60% interest in Sino-Top, a Chinese company which holds the exploration and mining rights to nine properties including a mine located in the Erbahuo Silver District in Inner Mongolia, China. The Agreement also gives Silver Dragon the right to increase its equity interest in Sino-Top to 70%. In addition, Silver Dragon and Sino-Top are party to strategic agreements with various parties including the North China Geological Exploration Bureau (NCGEB). The Agreement is subject to consent of the shareholders of Sino Silver and the receipt of the administrative consent of the local Provincial Department of Commerce in China. In the interim, Silver Dragon has committed to funding Sino-Top in order to facilitate the continuation of the comprehensive work program at the Erbahuo Silver Project.
Development work is underway at the Erbahuo silver mine, in compliance with requirements of the mine safety permit. The underground mine has been pumped dry, and the tunnels are being cleaned for mining activities. A test operation will commence this fall. Small-scale trial production will provide substantial basic data on design, ore dressing and business benefits, which will be used for planning future large-scale production.
Exploration fieldwork started on April 25, 2006 on three properties: Saihanaobao, Zhuanxinhu, and Laopandao Beihou. There are three teams of geologists and three geophysical exploration teams working the exploration areas.
A summary of exploration results follows:
Saihanaobao
As of June 15, Sino-Top geologists have completed 6 km2 of 1:5,000 geologic sketch survey, and have just begun high energy electrical sounding on site, comprised of 30 measurement points located on 3 lines, each of about 1 km length. One line crosses an area of geochemical interest in the northwest part of the concession, and 2 lines cross geochemical anomalies noted in the southern portion of the concession.
In the northwest part of concession, geochemical work done previously identified a silver anomaly. Surface geologic work this year discovered a 3,200 m long by 10-15 m wide altered, brecciated zone just NW of the silver anomaly, at the southeast edge of the granite intrusion. Within the brecciated zone, we have events containing magnetite, silica, limonite, quartz vein, fluorite veins, and epidote veins. A northeast-trending zone of quartz veinlets and a normally situated southeast trending zone of quartz veinlets exist, both groups containing lead and zinc mineralization (sphalerite & galena).
In the southwest portion, geologists found surface occurrences of lead minerals, but have not located the source of the mineralization. Previous geochemical analysis in the area showed silver anomalies. As such, two lines of high energy sounding are planned. Trenching activities will follow up on potential mineralized zones found by geophysics, and drilling will follow if justified. Additional 1:5,000 geologic mapping work on 10 km2 is underway and will be completed by the end of July. Also planned are 5 lines of high energy geophysical work, and 3km2 of general electrical and magnetic survey. Geophysical work will be completed before the end of August. Trenching work (1,000 m3) is expected to be completed by the end of August. Three drill holes are planned in the north area (total of 500 meters). Drilling is expected to begin July 1st and take 4-6 weeks to complete. Analysis of drill samples will be conducted by the government laboratory in Chifeng and verified by the NCGEA lab. Logging will be conducted by the NCGEA under supervision of Sino-Top.
Zhuanxinhu
Sino-Top geologists have completed geological mapping of 6.24 km2 at Zhuanxinhu. In the north part, consisting of andesitic tuffs, some altered, fractured, silicified breccias containing silicon, epidote, and fluorite were discovered.
In the southern portion, consisting of rhyolite tuffs, a 400 meter long and 150 meter wide zone with limonization was delineated. This alteration zone is coincident with the known geochemical anomaly. Old tunnels and tailings from previous exploration and small mining operations were investigated and sampled.
By the end of June, there will have been completed 3 km2 of general electrical survey, 2,000 meters of geologic and geochemical survey lines, 1 kilometer (two 500 meter lines) of high energy electrical survey, 12 points of high energy electrical sounding (2 lines of 6 points each), 500 m3 of trenching, and 100 m3 (10-20) of shallow shafts. Drilling of 450 meters (3 holes) is planned for August.
Laopandao Beihou
Geologists at Laopandao Beihou have finished 4 km2 of surface geologic mapping, with an additional 6 km2 to be completed this year in three areas of the concession. General electrical survey is currently underway -- 2 km2 is complete, with an additional 2 km2 to be completed in June. Lines of geological, geochemical and geophysical measurements in the south zone totaling over 2 kilometers in length were completed in early June. To date, over 300 m3 of trenching has been undertaken in the central zone, with 1,700 m3 remaining to be completed this summer.
In the southern part of the concession, three distinct alteration zones have been identified, the longest measuring 100 meters long (with expected length of 600 meters) and 1-2 meters wide, with silicification, limonization prevalent, and the shortest being about 30 meters long and 3-5 meters wide, consisting of a stockwork zone w/ silicification, limonization present. In the center zone, geologists found alteration zone indications but have not located a well defined measurable feature.
Geologists have found that the existing alteration zones have much more potential than previously anticipated. Significant persistence of pyrite and chalcopyrite is noted in the central zone. This area has excellent potential that needs to be drill tested. The Geological team has designed a 300-meter drill plan (2-3 holes) to test this area in 2006.
"The Silver Dragon Representative office in Beijing is now officially in operation and monitoring the work program, business license and share transfer progress in China. Further opportunities and relationships are being established in China in order to maximize Silver Dragon's presence and capitalize on its other assets globally. Monetizing and expanding our asset base are our immediate objectives at a time when silver assets are becoming much more valuable in China," stated Marc Hazout, President and CEO.
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 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 the Erbahuo projects in Mexico and China. For more information, please visit the Company's website at: www.silverdragonresources.com (now available in Chinese).
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that 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 market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Silver Dragon Resources Inc.
Marc Hazout
(416) 661-4989
info@silverdragonresources.com
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About Silver Dragon Resources Inc.
Based in Canada and publicly traded on the OTCBB, we are focused
on the exploration, acquisition, development and the operation of
silver mines throughout the world. The properties are located in
proven silver districts of Mexico and China.
To link to this corporate profile in our members area click here (You must be a registered member to see profile).
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