DURANGO, Mexico, June 28, 2007 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce the receipt of assays from Drill Hole LM-20 at its Cerro Las Minitas Project in Durango, Mexico.
Initial Drill Results from Drill Hole LM-20
Drill Hole LM-20 was drilled to a depth of 332.1 meters at an angle of -48 degrees to intercept a projected mineralized body indicated by intercepts in holes LM-17 and LM-18. Drill Hole LM-20 cut a 70-meter mineralized intercept. Assay results have been lagging as all laboratories in the region are serving excessive demand. The company has received assays for the first 31 meters of the intercept and has elected to report these assays as it may be some time yet before the rest of the assays are received. Six intercepts cut in the currently assayed portion of the hole, which are summarized in the table below, returned grades of economic interest. Reported intervals are measured core lengths, and their true widths have yet to be determined.
Highlights from Drill Hole LM-20 are:
* at 245.95 metres
downhole: 0.50 metres grading 185 g/t (5.97 oz/ton) silver,
1.79% lead, 4.45% zinc, and 0.59% copper
* at 248.15 metres
downhole: 0.35 metres grading 133 g/t (4.29 oz/ton) silver,
3.47% lead, 0.35% zinc, and 0.1% copper
* at 249.5 metres
downhole: 0.50 metres grading 142 g/t (4.58 oz/ton) silver,
1.55% lead, 3.58% zinc, and 0.36% copper
Including: 1.00 metres grading 804 g/t (25.84 oz/ton) silver,
21.2% lead, 19.5% zinc, and 0.36% copper
* at 250.9 metres
downhole: 1.55 metres grading 145 g/t (4.68 oz/ton) silver,
4.35% lead, 2.05% zinc, and 0.08% copper
Including: 0.55 metres grading 296 g/t (9.55 oz/ton) silver,
8.18% lead, 2.95% zinc, and 0.11% copper
* at 254.5 metres
downhole: 1.45 metres grading 451 g/t (14.55 oz/ton) silver,
7.08% lead, 3.90% zinc, and 0.20% copper
Including: 0.60 metres grading 295 g/t (9.52 oz/ton) silver,
5.96% lead, 4.57% zinc, and 0.22% copper
Including: 0.45 metres grading 713 g/t (23.0 oz/ton) silver,
5.09% lead, 4.16% zinc, and 0.24% copper
Including: 0.40 metres grading 391 g/t (12.61 oz/ton) silver,
11.0% lead, 2.59% zinc, and 0.11% copper
* at 275.15 metres
downhole: 2.10 metres grading 1031 g/t (33.26 oz/ton) silver,
5.12% lead, 3.85% zinc, and 0.25% copper
Including: 0.60 metres grading 241 g/t (7.77 oz/ton) silver,
5.02% lead, 3.82% zinc, and 0.25% copper
Including: 0.65 metres grading 2750 g/t (88.71 oz/ton) silver,
4.99% lead, 3.78% zinc, and 0.24% copper
Including: 0.55 metres grading 275 g/t (8.87 oz/ton) silver,
5.22% lead, 3.93% zinc, and 0.25% 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-20-1 245.95 246.45 0.50 185 1.79 4.45 0.59
LM-20-2 248.15 248.50 0.35 133.0 3.47 0.35 0.011
LM-20-3 249.50 250.00 0.50 142.0 1.55 3.58 0.357
LM-20-4 250.90 252.45 1.55 144.97 4.35 2.05 0.08
including 250.90 251.45 0.55 296.0 8.18 2.95 0.109
and 251.45 251.90 0.45 107.0 3.69 2.23 0.083
and 251.90 252.45 0.55 25.0 1.07 1.01 0.035
LM-20-5 254.5 255.95 1.45 451 7.08 3.90 0.20
including 254.50 255.10 0.6 295 5.96 4.57 0.221
and 255.10 255.55 0.45 713 5.09 4.16 0.242
and 255.55 255.95 0.4 391 11 2.59 0.105
LM-20-6 275.15 277.25 2.10 1031 5.12 3.85 0.25
including 275.15 275.45 0.3 275 5.45 3.93 0.256
and 275.45 276.05 0.6 241 5.02 3.82 0.254
and 276.05 276.70 0.65 2750 4.99 3.78 0.238
and 276.70 277.25 0.55 275 5.22 3.93 0.254
Interpretation of Drill Results
Drill Hole LM-20 was drilled to intercept a mineralized body indicated by analysis of results from drill holes LM-17 and LM-18. The drill hole cut 70 meters of mineralized, brecciated, clastic sediments before reaching the intrusive contact. Although we have received assays for only the first 31 meters of this intercept to date, visual inspection of the core indicates that we have discovered another mineralized sulfide chimney like those that have been mined previously in the Puro Corazon area. The new chimney has been named the Esperanza chimney. Further definition drilling of the chimney is planned after all assays have been received and drill data has been thoroughly analyzed.
Surface Exploration
Data recovered from drilling to date, as well as surface geologic mapping has been used by the surface exploration geologists to identify four additional areas in the central part of the district that may 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.
A ground magnetic survey has just been completed that covers the northern concession block. Magnetic data shows that the intrusive bodies at Cerro Las Minitas are larger and more widespread than was indicated by surface mapping. Several new targets have been identified under cover and these are being targeted for drilling.
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 Cerros las Minitas
Cerros las Minitas is comprised of 16 concessions covering 1423 Hectares. It is located in 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 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.