BEIJING, Sept. 14, 2009 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce initial results from the 2009 drilling program at the Company's Dadi Silver-Lead-Zinc Polymetallic project in Inner Mongolia, Northern China (see press releases of January 26, 2009 and March 3, 2009). Highlights of the latest discoveries are as follows:
* Drill hole ZK0801 has been completed to a depth of 200.26 meters with significant silver, lead and zinc mineralization found. * Three major mineralization intervals were found within drill hole ZK0801, the first of which is 2.25 meters wide, the second of which is 30.64 meters wide, and the third of which is 8.75 meters wide. * The first interval is 2.25 meters averaging 102.3g/t Ag, 1.3%Pb, and 1.01%Zn, including a 0.5 meter sample averaging 420g/t Ag, 4.42% Pb, and 3.27% Zn. * The second interval is 30.64 meters averaging 308.94 g/t Ag, 2.32% Pb, and 3.87% Zn, including a 1.0 meter sample averaging 1,810g/t Ag, 18.1%Pb, and 20% Zn. * The third interval is 8.75 meters averaging 79.31g/t Ag, 1.03%Pb, and 1.44% Zn, including a 1.0 meter sample averaging 348g/t Ag, 3.12% Pb, and 6.25% Zn. * The dipping extension of mineralized body No. II is over 90m, which suggests great economic potential for silver, lead, and zinc deposits.
According to the recently-obtained assay results from drill hole ZK0801 at the Dadi property, significant mineralization intervals have been found. The drill hole was operated at the cross section of exploration line No. 8 (Fig.1) to detect the dipping extension of mineralized body No. II, which had been revealed by a tunnel, nearer to the surface. Drill hole ZK0801 is 200.26 m deep with a 79 degree dipping angle and 220 degree azimuth.
The assay results (Table 1) show that three mineralized intervals with high-grade silver, lead and zinc have been revealed.
The first interval is from 108.75m to 119.3m (2.25 meters), with the highest grades reaching 420g/t Ag, 4.42% Pb, and 3.27% Zn (0.5m sample length). The average grades of the interval are 102.3g/t Ag, 1.3% Pb, and 1.01% Zn.
The second interval is the most significant, extending from depths of 127.25m to 157.89m (30.64 meters). The silver grades in 20 out of the 28 samples are over 100g/t Ag, with the highest being 1,810g/t Ag, plus 18.1% Pb and 20% Zn (over a 1m sample length). The average grades of this interval are 308.94g/t Ag, 2.32% Pb and 3.87% Zn.
The third interval is from 160.04m to 168.79m, totaling 8.75 meters. The highest grades among the eight samples are 348g/t Ag, 3.12% Pb, and 6.25% Zn (1m sample length). The average grades of this interval are 79.31g/t Ag, 1.03% Pb, and 1.44% Zn.
In comparison to the part of mineralized body No. II, which was revealed by tunneling at a higher position (see Figure 1 -- Geological Cross Section of Exploration Line No. 8. -- http://www.silverdragonresources.com/Upload/PR20090914001.jpg), it can be seen that the dipping extension of mineralized body No. II reaches over 90m, and the width of mineralization increases markedly. The mineralization strengths of silver, lead, and zinc also increase at depth.
Sino-Top, the entity owning rights to the Dadi property, is 40%-owned by Silver Dragon. Since the start of this year's exploration season in May, Sino-Top has engaged in a comprehensive exploration program. As of late August 2009, a total of 1,173m of drilling (4 holes) and 534m of tunneling (two tunnels) have been completed, in addition to trenching and other surface work.
Moreover, additional drilling work was recently commissioned by Sino-Top to expand the 2009 Dadi work program based on the strong initial results described above, including further drilling along strike and the dipping direction of mineralized body No. II described above.
Dr. Tiebing Liu, P. Geo., a "qualified person" within the meaning of NI 43-101, reviewed and participated in the preparation of the technical information disclosed in this news release.
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Sampling
interval (m) Sample
Sample -------------- length
No. number Drill hole from to (m)
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1 DH1501 ZK0801 34.49 35.41 0.92
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2 DH1502 ZK0801 35.41 36.61 1.20
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3 DH1503 ZK0801 86.25 87.95 1.70
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4 DH1504 ZK0801 87.95 88.88 0.93
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5 DH1505 ZK0801 88.88 89.88 1.00
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6 DH1506 ZK0801 89.88 90.88 1.00
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7 DH1507 ZK0801 90.88 92.00 1.12
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8 DH1508 ZK0801 92.00 92.90 0.90
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9 DH1509 ZK0801 92.90 93.80 0.90
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10 DH1510 ZK0801 93.80 95.35 1.55
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11 DH1511 ZK0801 95.35 96.90 1.55
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12 DH1512 ZK0801 96.90 98.10 1.20
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13 DH1513 ZK0801 98.10 99.27 1.17
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14 DH1514 ZK0801 99.27 101.27 2.00
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15 DH1515 ZK0801 101.27 102.87 1.60
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16 DH1516 ZK0801 102.87 103.90 1.03
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17 DH1517 ZK0801 103.90 105.40 1.50
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18 DH1518 ZK0801 105.40 106.90 1.50
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19 DH1519 ZK0801 106.90 107.68 0.78
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20 DH1520 ZK0801 107.68 108.75 1.07
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21 DH1521 ZK0801 108.75 109.25 0.50
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22 DH1522 ZK0801 109.25 110.25 1.00
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23 DH1523 ZK0801 118.56 119.31 0.75
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24 DH1524 ZK0801 126.25 127.25 1.00
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25 DH1525 ZK0801 127.25 128.55 1.30
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26 DH1526 ZK0801 128.55 129.85 1.30
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27 DH1527 ZK0801 129.85 130.85 1.00
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28 DH1528 ZK0801 130.85 131.65 0.80
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29 DH1529 ZK0801 131.65 132.75 1.10
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30 DH1530 ZK0801 132.75 133.85 1.10
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31 DH1531 ZK0801 133.85 134.85 1.00
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32 DH1532 ZK0801 134.85 135.85 1.00
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33 DH1533 ZK0801 135.85 136.85 1.00
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34 DH1534 ZK0801 136.85 137.95 1.10
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35 DH1535 ZK0801 137.95 139.29 1.34
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36 DH1536 ZK0801 139.29 140.49 1.20
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37 DH1537 ZK0801 140.49 141.49 1.00
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38 DH1538 ZK0801 141.49 143.04 1.55
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39 DH1539 ZK0801 143.04 144.34 1.30
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40 DH1540 ZK0801 144.34 145.54 1.20
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41 DH1541 ZK0801 145.54 146.54 1.00
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42 DH1542 ZK0801 146.54 147.64 1.10
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43 DH1543 ZK0801 147.64 148.64 1.00
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44 DH1544 ZK0801 148.64 149.64 1.00
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45 DH1545 ZK0801 149.64 150.49 0.85
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46 DH1546 ZK0801 150.49 151.69 1.20
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47 DH1547 ZK0801 151.69 152.69 1.00
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48 DH1548 ZK0801 152.69 153.79 1.10
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49 DH1549 ZK0801 153.79 154.89 1.10
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50 DH1550 ZK0801 154.89 155.89 1.00
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51 DH1551 ZK0801 155.89 156.89 1.00
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52 DH1552 ZK0801 156.89 157.89 1.00
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53 DH1553 ZK0801 157.89 159.09 1.20
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54 DH1554 ZK0801 159.09 160.04 0.95
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55 DH1555 ZK0801 160.04 161.14 1.10
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56 DH1556 ZK0801 161.14 162.39 1.25
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57 DH1557 ZK0801 162.39 163.49 1.10
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58 DH1558 ZK0801 163.49 164.69 1.20
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59 DH1559 ZK0801 164.69 165.69 1.00
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60 DH1560 ZK0801 165.69 166.69 1.00
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61 DH1561 ZK0801 166.69 167.69 1.00
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62 DH1562 ZK0801 167.69 168.79 1.10
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63 DH1563 ZK0801 168.79 169.89 1.10
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64 DH1564 ZK0801 169.89 170.89 1.00
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65 DH1565 ZK0801 170.89 172.59 1.70
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66 DH1566 ZK0801 176.29 177.29 1.00
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67 DH1567 ZK0801 179.94 180.94 1.00
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68 DH1568 ZK0801 184.96 186.46 1.50
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Assay results Average grade
Sample Drill ---------------------- (Ag g/t, Pb%, Zn%)
No. number hole Ag g/t Pb% Zn% /Width (m)
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1 DH1501 ZK0801 1.20 0.012 0.012
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2 DH1502 ZK0801 1.20 0.010 0.008
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3 DH1503 ZK0801 1.20 0.007 0.100
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4 DH1504 ZK0801 1.20 0.005 0.020
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5 DH1505 ZK0801 1.20 0.004 0.140
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6 DH1506 ZK0801 1.20 0.003 0.100
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7 DH1507 ZK0801 1.20 0.006 0.260
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8 DH1508 ZK0801 1.20 0.028 0.050
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9 DH1509 ZK0801 1.20 0.048 0.052
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10 DH1510 ZK0801 1.20 0.022 0.058
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11 DH1511 ZK0801 1.20 0.009 0.012
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12 DH1512 ZK0801 1.20 0.008 0.025
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13 DH1513 ZK0801 1.20 0.005 0.018
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14 DH1514 ZK0801 1.20 0.006 0.015
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15 DH1515 ZK0801 1.80 0.005 0.012
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16 DH1516 ZK0801 1.20 0.011 0.020
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17 DH1517 ZK0801 1.20 0.008 0.032
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18 DH1518 ZK0801 1.20 0.010 0.055
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19 DH1519 ZK0801 3.80 0.034 0.120
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20 DH1520 ZK0801 14.00 0.170 0.300
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21 DH1521 ZK0801 420.00 4.420 3.270
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22 DH1522 ZK0801 7.50 0.090 0.420 102.30, 1.30, 1.01/2.25
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23 DH1523 ZK0801 16.90 0.820 0.280
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24 DH1524 ZK0801 1.20 0.024 0.120
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25 DH1525 ZK0801 82.20 0.780 1.580 308.94, 2.32, 3.87/30.64
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26 DH1526 ZK0801 118.00 1.090 2.050
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27 DH1527 ZK0801 91.50 0.580 1.650
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28 DH1528 ZK0801 67.50 0.620 0.800
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29 DH1529 ZK0801 296.00 2.780 4.650
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30 DH1530 ZK0801 217.00 2.100 3.000
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31 DH1531 ZK0801 190.00 1.860 3.450
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32 DH1532 ZK0801 300.00 2.640 13.750
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33 DH1533 ZK0801 1810.00 8.100 20.000
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34 DH1534 ZK0801 522.00 3.710 7.100
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35 DH1535 ZK0801 128.00 1.560 1.800
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36 DH1536 ZK0801 141.00 1.410 2.250
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37 DH1537 ZK0801 99.00 0.800 1.750
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38 DH1538 ZK0801 138.00 1.150 1.850
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39 DH1539 ZK0801 1294.00 5.710 17.250
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40 DH1540 ZK0801 127.00 1.190 2.030
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41 DH1541 ZK0801 6.00 0.041 0.160
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42 DH1542 ZK0801 52.50 0.780 0.670
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43 DH1543 ZK0801 424.00 1.810 0.820
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44 DH1544 ZK0801 102.00 1.600 0.140
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45 DH1545 ZK0801 269.00 1.940 1.600
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46 DH1546 ZK0801 801.00 2.880 3.750
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47 DH1547 ZK0801 208.00 0.620 0.430
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48 DH1548 ZK0801 50.20 0.200 0.140
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49 DH1549 ZK0801 66.00 0.380 0.720
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50 DH1550 ZK0801 203.00 1.920 3.850
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51 DH1551 ZK0801 219.00 2.390 3.650
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52 DH1552 ZK0801 596.00 5.240 6.850
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53 DH1553 ZK0801 13.50 0.170 0.210
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54 DH1554 ZK0801 3.80 0.041 0.085
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55 DH1555 ZK0801 15.80 0.370 0.400
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56 DH1556 ZK0801 3.50 0.075 0.100
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57 DH1557 ZK0801 24.50 0.970 0.100
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58 DH1558 ZK0801 142.00 1.720 2.190
------------------------------------------- 79.31, 1.03, 1.44/8.75
59 DH1559 ZK0801 348.00 3.120 6.250
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60 DH1560 ZK0801 94.00 1.260 1.750
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61 DH1561 ZK0801 12.00 0.360 0.600
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62 DH1562 ZK0801 19.00 0.580 0.600
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63 DH1563 ZK0801 5.50 0.160 0.160
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64 DH1564 ZK0801 2.50 0.078 0.090
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65 DH1565 ZK0801 4.50 0.170 0.220
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66 DH1566 ZK0801 4.50 0.210 0.200
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67 DH1567 ZK0801 4.50 0.150 0.200
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68 DH1568 ZK0801 5.50 0.410 0.400
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Table 1 Assay results of Drill Hole ZK0801 at Dadi property
Note: The core sampling method is to saw the core in half for assaying with the other half being put in a storage box with a red marker. The length of each sample varies from 0.5m to 1m depending on mineralization and lithology.
All assay data were made by ordinary chemical methods at Yanjiao Central Laboratory of North China Nonferrous Geological Survey Bureau.
About the Dadi Silver-Lead-Zinc Polymetallic Project
Dadi is one of the eight exploration properties of Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company which holds exclusive exploration rights to these properties located in the prolific Erbahuo Silver District in Inner Mongolia, China. The Dadi exploration area, covering 12.48 square kilometers, is located in the Mesozoic volcanic basin in Keshiketeng County, Inner Mongolia, China.
Geologically, the Dadi property is located in the south edge of the Daxinganling metallogenic belt and at the joint between the Daxinganling mountain chain (with north-east direction) and the Xilamulunhe structure belt which trends in an east-west direction. These two structural belts are also two major ore-forming belts of China. This entire tectonic setting provides a dynamic geologic environment for the development of mineralizing systems. The major exposed rocks in the Dadi Property are Upper Jurassic Baiyinggaolao Formation dacitic tufaceous lava, dacitic tuff, rhyolitic tuff, and tufaceous sendstone and conglomerate, among which dacitic tufaceous lava and dacitic tuff are the main host rocks of mineralization. Sino-Top completed 702 meters of tunneling at Dadi in the 2008 exploration season.
About Sino-Top:
Sanhe Sino-Top Resources & Technologies, Ltd. ("Sino-Top") was originally incorporated in 2003 as a Chinese company wholly owned by Huaguan Industrial Corp. ("HIC"), a subsidiary of state-owned entity North China Geological Exploration Bureau. Sino-Top became an American-Chinese joint venture in 2005. Silver Dragon Resources Inc. acquired Sino-Top in 2006, and currently owns 40% of Sino-Top after having sold 50% of its ownership interest to its Chinese partner. The Chinese side, including Gansu Shengda Group (52%) and HIC (8%), collectively owns 60% (see press release of December 16, 2008). Sino-Top holds exclusive exploration rights to eight properties and mining rights to one property (Erbahuo Silver Mine) in northern China (Inner Mongolia), covering a total area of 261.25 km2.
In 2008, the Erbahuo Silver Mine was spun off from Sino-Top and put under a separate entity, i.e. Chifeng Silver Dragon Resources & Technologies, Ltd. ("Chifeng Silver"), an American-Chinese joint venture that is currently 70% owned by Silver Dragon and 30% owned by HIC.
About Silver Dragon Resources Inc.:
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 Erbahuo projects in Mexico and China respectively. For more information, please visit the Company's website at: www.silverdragonresources.com (now available in Chinese).
The Silver Dragon Resources Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4242
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical, such as statements regarding the exploration and development of the Dadi Silver Project, production timelines, outcome and timing for the completion of further assays and metal amounts in partial assay results, are forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Information inferred from the interpretation of assay results and information concerning mineralized zones may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward-looking statements 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 future assay results, delays in testing and evaluation of assays, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.