TORONTO, May 22, 2008 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) announced today that it has received a status report from the Chinese Academy of Science regarding the Program for research on the metallogenic prospects of the Erbahuo Silver District in Inner Mongolia China.
Sliver Dragon initiated this scientific research program by engaging a research team from the Institute of Geology and Geophysics, Chinese Academy of Sciences ("IGCAS"), which is headed by Professor Shen Yuanchao. The two parties officially signed the scientific research contract in December 2007. Silver Dragon paid 200,000 RMB (US$28,575) to the research team and the scientific research contract came into effect in January 2008. From then on, the metallogenic prediction research team has started their scientific research activities.
The objective will be to define the regional metallogenic prospects and resource potentials and make metallogenic predictions of target areas through the means of remote sensing, geological, geochemical and geophysical study.
"This will provide a scientific basis for further geological prospecting and development of the mining areas," stated Colin Sutherland, Chief Financial Officer and interim Chief Executive Officer of Silver Dragon.
The scientific research program will have a term of three years, with a total investment of three million RMB yuan (one million for each year). Work will not commence until funding is in place. The program will be implemented by the research team of Institute of Geology and Geophysics, Chinese Academy of Sciences, headed by Professor Shen Yuanchao.
The scope of the research will include:
(1) Identify exploration targets through remote sensing, geological,
geochemical and geophysical comprehensive research methods, the
team will systematically study the silver polymetallic deposits
of Erbahuo silver district, Chifeng City, Inner Mongolia, and the
ore-forming conditions of the exploration areas, define the
deposit types, distribution, and ore-forming rules of silver,
copper, lead, zinc, tin, and other major metal deposits, assess
regional metallogenic prospects.
(2) The team will choose two or three Ag polymetallic deposits for
deposit type study; set up models of deposit formation,
geochemistry and geophysics; predict ore-forming features of
external and deep deposits, based on which the regional
metallogenic prediction will be made.
(3) The team will carry out comparison study of adjacent districts,
especially a study of the deposit distribution of adjacent
large-scale silver polymetallic deposits, and take the
exploration experience in adjacent properties as reference for
the promotion of the geological prospecting work in target areas.
(4) Define ore bodies and mineralized alterations by comprehensive
technical means; determine the distribution of ore bodies and
mineralized bodies in greater depths and maximum depth levels of
mineralization; provide a scientific basis for ore-forming
geological conditions, rules and ore-controlling factors, which
are revealed by geological field research, and thereby set up
geological models and prospecting models to make metallogenic
predictions.
Professor Shen expressed positive and optimistic views on the prospects of Silver Dragon's China projects and made specific arrangements for the research program in order to help ensure its success.
The Dadi Silver Project will be the first of field exploration target for the team.
About the IGCAS Metallogenic Prediction Research Team.
The Metallogenic Prediction Research Team of IGCAS has long been engaging in geological research of metal deposits and metallogenic prediction and accumulated a wealth of experience and scientific data. The research team is equipped with state-of-the-art geochemical detection instruments with high speed and accuracy, such as the ground gamma-ray spectrometer, X-ray fluorescence analyzer, electrical analyzer, which can fast verify ground mineralized anomaly. It also boasts an advanced EH-4 conductivity imaging system for dual-source magnetotelluric sounding at great depths. Thus the team has a complete set of geological, geophysical and geochemical means for metallogenic prediction.
About Silver Dragon Resources Inc.
Silver Dragon Resources Inc. is a mining and metal company focused on the acquisition, exploration, development and operation of silver mines in proven silver districts exclusively in China and Mexico. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, 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 Cerros las Minitas in Mexico and the nine Erbahuo properties in China. With operations in Mexico, the world's leading producer of silver, and in China, the world's largest consumer of silver, Silver Dragon is prepared to participate in China's increasing demand for silver. 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 Projects, outcome and timing for the completion of further assays and Silver Dragon's future prospects, 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. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including risks associated with the mining industry such as economic factors, government regulation and approvals, environmental risks, actual results of exploration activities, future commodity prices, permitting timelines, capital expenditures, possible variations in ore reserves, resources, grade or recovery rates, requirements for additional capital, changes in laws or policies, changes in project parameters as plans continue to be refined, conclusions of economic evaluations as well as other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.