BEIJING, Oct. 2, 2007 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce initial results of its 2007 exploration program at the Laopandao Beihou Silver Project ("Laopandao") located in the Erbahuo Silver District in Northern China. As a result of its exploration efforts, Silver Dragon has identified significant silver, copper, and tin (Ag, Cu, and Sn) deposits. Silver Dragon owns a 90% equity interest in Sahne Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company which holds the exploration and mining rights to Laopandao and eight other properties in the Erbahuo Silver District in Northern China.
The Laopandao exploration area covers 44.79 square kilometers and is located approximately 650 kilometers north by northeast of Beijing in Chifeng, Inner Mongolia. Mineralization zones have been identified in the northern, central and southern portions of the exploration area. The 2007 exploration program began in April and has focused on the central area known as anomalous zone No. 95. To date, seven holes and 2,635.7 meters have been drilled to depth and 910 meters of tunnels have been completed. According to assay results, from both the current and previous exploration programs, Silver Dragon has identified a potential industrial grade metal deposit of 109.83 tonnes of silver, 11,479.1 tonnes of copper, and 4,604.73 tonnes of tin. In the aggregate, this represents 526 silver equivalent tonnes assuming grading at 497.95g/t given current Shanghai market spot prices. These calculations are compliant with China's national standard 122b+333.
Below are initial assay results from the Laopandao Exploration Program, additional assay results from which will be forthcoming.
The Laopandao Exploration Program results are available at http://media.primezone.com/cache/8700/file/4708.pdf
Interpretation of Exploration Results
Drill hole ZK1001 reveals a large, thick Ag-Cu ore body in stratified volcanic rock. Mineralization appears between 85.7 meters and 142.5 meters down hole with a thickness of 56.8 meters. 29 samples assayed higher than 0.1% Cu each, with a total vertical thickness of 27.75 meters. The weighted average grade is 0.21% Cu. The highest Ag grade is 60.2g/t and the highest Cu grade is 0.61%. Two smaller Ag-Cu ore bodies were found parallel to the large Ag-Cu ore body. These ore bodies exist in ore-containing silicic tuff layers with the features of rhyolite, crystal fragments and lithiclast. The occurrences are consistent with the volcanic rock layers. The deposit type is transformed volcano-sediment stratabound deposit. Similar Ag-Cu mineralization is also seen in the other drill holes through the same layers. The thicknesses range from 25 meters to 105 meters, with depths between 126 meters to 380 meters, in sheet or tongue shapes with increasing thickness from west to east. The Ag-Cu deposits mainly appear in the thicker parts where lithologic transformation occurs.
A more detailed analysis of the other drill holes is underway as are additional assay results. In anticipation of those results, outlined below are the depths and thicknesses of the Ag-Cu ore bodies of the other drill holes.
Depths and Thicknesses of Ag-Cu Veins Revealed by the Drill Holes
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Drill Depth of Reaching Vein Elevation
Hole No. Mineralization (m) (m) Vein
------------------ ----------------- Thickness
Top Bottom Top Bottom
ZK0201 230 262 1475 1445 30
ZK0203 334 380 1410 1360 50
ZK0601 180 206 1455 1430 25
ZK0602 190 235 1455 1408 47
ZK1001 126 184 1482 1423 59
ZK1002 150 240 1470 1380 90
ZK1401 140 354 1420 1215 205
Through this year's exploration work at Laopandao, Silver Dragon has found at least two types of mineralization in the area as follows: (i) a near-surface vein-like Ag-Cu-Sn mineralization with higher grades but poorer continuity and (ii) a veinlet disseminated sheet-type Ag-Cu mineralization with lower grades but greater thickness and continuity. The latter mineralization type is more valuable and will be the major exploration target of the Laopandao project.
An Incidental Find of a High-Grade Rock
During the course of the recent exploration work in the central part of Laopandao, a single large rock containing high enrichment of minerals was found on the land surface about 200 meters east of the adit to tunnel PD6 (along the strike of ore body II-2). The piece of ore is 0.027m(3) in size and weighs 75.6kg, and some samples from it assayed 12,306g/t Ag, 24.97% Cu, 18.56 Sb and 13.01% As. It is May be an indicator for the potential existence of a highly enriched ore body in the vicinity of the Laopandao property.
"We are very pleased with our achievements at Laopandao, considering that early stage exploration activities have been performed on less than one third of this vast property," commented Mr. Yang Guofu, Sino-Top Chief Geologist. "In addition to anomalous zone No. 95, we have also been conducting surface geologic work on anomalous zone No. 104 in the north and anomalous zone No. 102 in the south in preparation for drilling and tunneling projects that we expect to commence next year."
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 the Erbahuo projects in Mexico and China. 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.primenewswire.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 Laopandao Silver Project, outcome and timing for the completion of further assays and metal amounts in partial assay results, 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 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.