BEIJING, Oct. 30, 2007 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce that the Company has completed Phase 1 of the exploration and development program proposed for the Erbahuo property. Phase 1 activities, which stemmed from a June 12, 2007 National Instrument 43-101 compliant report prepared by Micromine Consulting, included the following: (i) combining existing data digitally and integrating all available previous work, including IP surveys, drilling, trial mining and processing, trench sampling, and mapping; (ii) validating historical data, extending those areas which are not covered by geophysical data, and testing for additional resource potential on open areas; (iii) establishing and shoring up entries to old workings; and (iv) further implementing of QA/QC procedures for precision, bias analysis, standard submissions, blank submissions and international supervision of all drilling and other sample programs.
In addition to Phase 1, Silver Dragon seeks to construct and operate a 300-500 ton per day processing plant at Erbahuo. To this end, Silver Dragon is beginning to identify and qualify candidates to manage the processing plant's engineering, procurement, project, and construction management ("EPCM") activities. Additional criteria to be given consideration as part of EPCM activities include: (i) 40.7 million tonnes of 122b and 17.0 million tonnes of 333 silver equivalent resource, average grading equal to 248 g/t silver; (ii) 200 operating days per year; and (iii) mining dilution of 15%, metal recovery from mining equal to 70%, and metal recovery from mineral processing equal to 60%.
"We are pleased with our continued progress in China," commented Marc Hazout, President and Chief Executive Officer of Silver Dragon Resources Inc. "We look forward to ongoing results from our NI 43-101 conversion program with respect to our nine properties, including expanding the existing NI 43-101 report at Erbahuo as we proceed to production. This conversion program will also assist in the objective of canadianizing the company."
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. Silver Dragon owns a 90% equity interest in Sanhe Sino-Top Resources & Technologies, Ltd. ("Sino-Top"), a Chinese company which holds the exploration and mining rights to nine properties, including the Erbahuo Silver Mine located in the Erbahuo Silver District in Northern China. For more information, please visit the Company's website at: www.silverdragonresources.com (now available in Chinese).
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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.