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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 Identifies 178,000 Tonnes of Ag-Cu-Sn Deposits From Initial Exploration Work at Laopandao, China
BEIJING--(MARKET WIRE)--Dec 12, 2006 -- Silver Dragon Resources Inc. (OTC BB:SDRG.OB - News) is pleased to announce the identification of 178,000 tonnes of industrial grade Ag-Cu-Sn deposits from initial exploration work at Laopandao at the Sino-Top projects in the Erbahuo Silver District in Northern China.
Laopandao is one of the nine properties of Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company which holds the exclusive exploration and mining rights to nine properties including a silver mine located in the Erbahuo Silver District in Inner Mongolia, China. Silver Dragon has a 60% ownership interest in Sino-Top.
The Laopandao exploration area, covering 44 square kilometers, is located in Chifeng, Inner Mongolia. Mineralization zones have been found in the northern, central and southern parts of the area. The initial exploration work, which included a 213m tunneling project and a two-hole (662.2m) drilling project, was focused on one of the three geochemical anomalies in the central part of the area in order to define the extensions of the ore bodies. Calculations based on the recent assay results have identified an industrial grade ore reserve of 178,000 tonnes, containing 8.93 tonnes of silver with an average grade of 50.2g/t, 818.64 tonnes of copper grading 0.46%, and 1,014.41 tonnes of tin grading 0.57%. The resource calculations are compliant with China's national standards 332 + 333 for indicated and inferred resources.
At the tunneling project, the main tunnel was developed along the first discovered ore body and then branched out at two locations to intercept the second ore body. Assay results from the main tunnel were announced in a previous report released on October 16. The following table shows assay results from the branch tunnels:
Assay Results from the Branch Tunnels at the Tunneling Project
Sample No. From (m) To (m) Length (m) Ag (g/ton) (%) (%)
---------- -------- -------- ---------- ---------- ----- -------
LPCM1 0.00 0.60 0.60 1,808 10.86 N/A
LPCM2 0.60 1.60 1.00 85.6 0.65 N/A
LPCM14 4.50 5.50 1.00 21.6 0.18 0.20
LPCM15 5.50 6.50 1.00 12.4 0.09 0.49
LPCM3 0.70 1.20 0.50 38.5 0.44 N/A
LPCM4 1.20 1.70 0.50 220 0.65 N/A
LPCM23 5.50 6.00 0.50 4.4 0.08 0.62
LPCM24 6.00 6.60 0.60 9.7 0.3 1.06
LPCM26 9.70 10.30 0.60 9.9 0.44 0.02
LPCM27 10.30 10.80 0.50 225 1.84 0.01
LPCM38 10.80 11.50 0.70 23.6 1.03 0.04
Two drill holes have been completed in order to verify the extent of the ore bodies. Drill Hole ZK6-1 reached a depth of 321.20m and Drill Hole ZK6-2 reached 341.00m. The drill results are as follows:
Weighted Average (Composite) Assay Values for Intercepts cut in Drill Hole ZK6-1
Sample No. From (m) To (m) Length (m) Ag (g/ton) (%) (%)
---------- -------- -------- ---------- ---------- ----- -------
1 - 2 55.10 57.70 2.60 38.9 0.27 0.565
3 - 11 59.80 69.30 9.50 81.47 0.65 1.05
12 69.30 70.30 1.00 36.2 0.14 N/A
13 70.30 71.10 0.80 34.9 0.44 N/A
14 192.70 193.50 1.80 60.4 0.26 N/A
15 222.50 223.70 1.20 35.2 0.10 N/A
Among samples 1 - 2, the best sample assays 51.2 g/t Ag, 0.43% Cu and 1.11% Sn. Among samples 3 - 11, the best sample assays 772 g/t Ag, 2.97% Cu and 4.63% Sn.
Weighted Average (Composite) Assay Values for Intercepts cut in Drill Hole ZK6-2
Sample No. From (m) To (m) Length (m) Ag (g/ton) (%) (%)
---------- -------- -------- ---------- ---------- ----- -------
1 6.0 6.6 0.6 N/A N/A 0.26
2 6.6 6.7 1.1 N/A N/A 0.15
3 7.7 8.7 1.0 N/A N/A 0.28
4 8.7 9.9 1.2 N/A N/A 0.13
5 9.9 10.9 1.0 N/A N/A 0.13
6 10.9 11.9 1.0 30 0.20 1.10
7 11.9 12.9 1.0 44.6 0.68 0.52
8 192.0 193 1.0 N/A 0.35 N/A
9 211.1 212.1 1.0 20 0.42 N/A
10 214.1 215.1 1.0 15.2 0.44 N/A
11 227 228.6 1.6 9.4 0.76 N/A
12 228.6 229.2 0.6 9.1 0.20 N/A
Interpretation of Exploration Results
Calculations based on currently available data reveal an ore reserve of 178,000 tonnes, with the metal content being 8.93t silver, 818.64t copper and 1,014.41t tin. More significantly, at least two industrial grade Ag-Cu-Sn ore bodies, which are over 100 meters long and parallel to each other, are shown to exist in the anomalous zone. By conservative estimate, this zone can potentially yield 50t silver, 4,000t copper and 2,000t tin.
"Our achievement of this year is even more impressive considering the fact that our initial exploration projects have been very small in scale. Next year while continuing to expand our achievement in this anomalous zone, which is but one of the three in the central area of Laopandao, it is our intention that our exploration work will focus on the other two anomalous zones believed to have similar mineral potentials. In due course, we also intend to explore the northern and southern areas of this vast property, which we hope to develop into a Ag-Cu-Sn mine in the near future," stated Mr. Yang Guofu, Sino-Top's Chief Geologist.
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 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 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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