TORONTO, July 17, 2007 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce the completion of a technical report on the Erbahuo Silver Project in Wengniute County, Inner Mongolia, China. The technical report was prepared in accordance with JORC and Canadian National Instrument 43-101 requirements for the estimation of resources by Micromine Consulting ("Micromine"), a resource sector software developer and consulting company headquartered in Perth, Australia.
The deposit is a shear zone hosted and stratabound volcanogenic hydrothermal system of parallel trending and dipping mineralization containing pyrolusite, psilomelane, limonite, pyrite, galena, sphalerite, chalcopyrite, and other silver-related mineralization. Silver is concentrated within manganese oxides.
"The results of Micromine's study presented in the report are favorable, and with the existing license and facilities available, we have identified this project as a property of interest and plan to continue exploration with the objective of becoming a full-scale producing mine," Marc Hazout, CEO of Silver Dragon revealed.
Silver Dragon possesses a license permitting underground mining of up to 5,000 tonnes of silver ore per year on an area of 1.2 square kilometers. Allowable mining depth is 1,100 to 950 meters above sea level. The license was issued July 17, 2003 by the Land and Resources Department of Inner Mongolia to Sanhe Sino-Top Resources and Technologies, Ltd. ("Sino-Top"), which prior to the joint venture with Silver Dragon in 2005, was wholly owned by Huaguan Industrial Corp.
Erbahuo is the smallest but most advanced of Silver Dragon's nine properties in China. The existing mining license will help fast-track this property to development and production and be used as a template for subsequent NI 43-101 compliant reports. Subsequent to completing the Erbahuo 43-101 report, Ausenco has started work on the 43-101 report for Laopondao, the second of nine 43-101 reports to be completed on our Chinese properties. Laopondao is substantially larger than Erbahuo, and based on the Erbahuo report template, Silver Dragon believes the remaining eight Chinese 43-101 reports will be completed more rapidly than the first.
Silver Dragon Resources Inc. owns a 90% equity interest in Sino-Top , a Chinese company which holds the exploration and mining rights to nine properties including the Erbahuo Silver Mine located in the prolific Erbahuo Silver District in Northern China.
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.