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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 Cuts 804 Grams per Tonne/25.8 Ounces Silver in First Drill Intersection of Ag-Pb-Zn Manto Mineralization at Cerro las Minitas Project, Mexico
DURANGO, MEXICO--(MARKET WIRE)--Aug 8, 2006 -- Silver Dragon Resources Inc. (OTC BB:SDRG.OB - News) is pleased to announce the receipt of assays from the second drill hole, Drill Hole LM-02, at its Cerro las Minitas Project in Durango, Mexico.
Drill Results from Drill Hole LM-02
Drill Hole LM-02 was drilled to a depth of 421.4 meters at an angle of -63° to intercept the Puro Corazón structures 100 meters below the deepest exploration there to date and to test additional targets suggested by data from drill hole LM-01. Five of the six intercepts cut in this hole, which are summarized in the table below, returned grades of economic interest.
The intersection of previously unknown high-grade manto-style mineralization in LM-02 is of significant interest, as this is the first hard evidence for manto mineralization peripheral to the skarn environment at Cerro las Minitas. Reported intervals are measured core lengths, and their true widths have yet to be determined.
Highlights from Drill Hole LM-02 are:
-- @ 158.8 metres downhole: 3.55 metres grading 271 g/t (8.71 oz/ton)
silver, 9.15% lead, 8.0% zinc, and 0.59% copper
-- @ 274 metres downhole: 1.89 metres grading 408 g/t (13.11 oz/ton)
silver, 12.4% lead, 9.83% zinc, and 0.1% copper
-- @ 333.25 metres downhole: 1.45 metres grading 617 g/t (19.83 oz/ton)
silver, 17.5% lead, 16.07% zinc, and 0.57% copper
Including: 1.00 metre grading 804 g/t (25.84 oz/ton) silver, 21.2%
lead, 19.5% zinc, and 0.36% copper
-- @ 338.5 metres downhole: 1.30 metres grading 442 g/t (14.20 oz/ton)
silver, 12.01% lead, 9.63% zinc, and 0.11% copper
Including: 0.65 metre grading 751 g/t (24.13 oz/ton) silver, 21.2% lead,
16.5% zinc, and 0.19% copper
Weighted Average (Composite) Assay Values for Intercepts cut in Drill Hole LM-02
Length Ag
Interval From (m) To (m) (m) (g/ton) Pb (%) Zn (%) Cu (%)
-------- -------- -------- -------- -------- -------- -------- --------
--------- -------- -------- -------- -------- -------- -------- --------
LM-02-1 158.8 162.35 3.55 271 9.15 8.00 0.59
--------- -------- -------- -------- -------- -------- -------- --------
including 158.8 160.9 2.01 289 10.65 7.66 0.76
--------- -------- -------- -------- -------- -------- -------- --------
--------- -------- -------- -------- -------- -------- -------- --------
LM-02-2 168.9 170.05 1.15 224 7.83 6.01 0.83
--------- -------- -------- -------- -------- -------- -------- --------
--------- -------- -------- -------- -------- -------- -------- --------
LM-02-3 274.0 275.9 1.89 408 12.40 9.83 0.10
--------- -------- -------- -------- -------- -------- -------- --------
including 274.0 275.2 1.20 482 14.70 14.35 0.15
--------- -------- -------- -------- -------- -------- -------- --------
and 275.66 275.9 0.24 539 17.10 4.24 0.05
--------- -------- -------- -------- -------- -------- -------- --------
--------- -------- -------- -------- -------- -------- -------- --------
LM-02-4 333.25 334.7 1.45 617 17.50 16.07 0.57
--------- -------- -------- -------- -------- -------- -------- --------
including 333.70 334.7 1.00 804 21.20 19.15 0.36
--------- -------- -------- -------- -------- -------- -------- --------
--------- -------- -------- -------- -------- -------- -------- --------
LM-01-5 337.50 338.00 0.50 130 7.49 11.20 0.12
--------- -------- -------- -------- -------- -------- -------- --------
--------- -------- -------- -------- -------- -------- -------- --------
LM-01-6 338.50 339.80 1.30 442 12.01 9.63 0.11
--------- -------- -------- -------- -------- -------- -------- --------
including 338.50 339.15 0.65 751 21.20 16.15 0.19
--------- -------- -------- -------- -------- -------- -------- --------
Interpretation of Drill Results
Drill Hole LM-02 is the second of a series of holes to be drilled into the Puro Corazón structures. Data acquired from Drill Hole LM-01 suggested that additional mineralized structures may occur west of the Puro Corazón structures, and Drill Hole LM-02 was planned to test those. The high-grade intercepts returned from Drill Hole LM-02 confirm that these previously unknown mineralized zones do indeed exist.
Three distinct mineralized environments were explored by Drill Hole LM-02. Intercept LM-02-6 explored mineralization in the skarn environment adjacent to the granodiorite intrusive. Our knowledge of controls of mineralization in that environment is growing rapidly because all previous production from Puro Corazón came from this environment.
Dikes injected off the main intrusive into adjacent faults were the second environment tested. Intercepts LM-02-1 and LM-02-2 intersected that style of mineralization. Confirmation that the dike apophyses environment can host ore grades and thicknesses expands the discovery potential in the Cerro las Minitas district considerably.
Manto mineralization had been previously unknown to occur at Cerro las Minitas however intercepts LM-02-3, LM-02-4 and LM-02-5 provided the first hard evidence, predicted from surface geological mapping, that Ag-Pb-Zn manto mineralization peripheral to the skarn environment is present in the district. We are very pleased to find that the sulfide mineralogy of the manto mineralization is simple, and anticipate that it will respond very well to processing.
Doug Wood, Chief Geologist at Cerro las Minitas, said, "We are pleased to confirm that the dike apophysis environment is productive at Cerro las Minitas. That expands our discovery potential here substantially. However, we are also very excited to confirm the existence of Ag-Pb-Zn manto mineralization, previously unknown in the district. These discoveries expand our exploration potential in the district by an order of magnitude. The manto environment at Cerro las Minitas is completely unexplored and we have the opportunity to develop a major new district here. It is very encouraging that our first encounter with the manto environment has returned such high grades."
Surface Exploration
Data recovered from Drill Hole LM-02 has been used by the surface exploration geologists to identify two additional areas in the central part of the district that may also host Ag-Pb-Zn manto mineralization. Surface mapping and sampling, as well as rehabilitation of old workings now underway are expected to define drill targets there.
District-wide surface mapping has revealed that surface evidence of mineralization occurs over a much larger area than was known previously. Mineralization found furthest from the intrusive center appears to be indicative of manto mineralization. "Considerable surface cover, caliche, and deep oxidation are slowing our progress, but we are moving closer every day to the discovery of one of the economically significant Ag-Pb-Zn mantos we believe to be here," said Doug Wood.
Mr. Douglas R. Wood, P. Geo., a "qualified person" within the meaning of NI 43-101, prepared the technical information disclosed in this news release.
About Cerro las Minitas
Cerro las Minitas is comprised of 16 concessions covering 1394 Hectares. It is located 68 kilometers northeast of the City of Durango, Mexico and comprises the Cerro las Minitas mining district, part of the prolific silver belt of the Sierra Madre Occidental. Silver Dragon Resources Inc. through its wholly owned Mexican Subsidiary Silver Dragon Mining de Mexico S.A. De C.V. acquired the exploration and mining rights to the property in March 2006.
About Silver Dragon
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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