BEIJING, Aug. 26, 2008 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce further progress of the ongoing comprehensive exploration program at Liangdi Silver-Lead-Zinc polymetallic project. The tunneling project PD1 has further revealed the extensions of mineralized bodies No.4, No.5, No.6, No.7 and No.8 (see Figure 1). In particular, the length of the indicated part of mineralized body No.6 is now 120 meters, and that of No.7 is 80 meters. The grades of mineralized body No.6 are up to 663g/t Ag, 15.63% Pb and 18.38% Zn (see sample LH220 in Table 1). The horizontal thicknesses of the mineralized bodies are mostly between 2 and 3.6 meters.
Below is a link to the sampling plan map (Figure 1) of the PD1 tunneling project and the chemical assay results in Table 1.
The Sampling Plan Map (Figure 1) is available at http://media.primezone.com/cache/8700/file/6004.jpg
Table 1 Chemical Assay Results of the Indicated Mineralized Bodies
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Assay results
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Sample No. Sample Length(m) Ag (g/t) Pb (%) Zn (%)
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Mineralized zone No. 7:
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LH140 0.5 110.0 6.38 0.26
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LH145 0.1 23.1 5.17 1.05
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LH148 0.3 42.6 15.85 7.29
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LH149 0.7 25.0 7.12 5.78
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LH151 0.6 19.8 9.67 6.57
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LH153 0.5 47.8 14.30 7.59
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LH155 0.7 4.5 3.28 3.27
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LH207 0.7 6.6 4.24 3.06
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LH214 0.3 11.0 4.52 3.73
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Mineralized zone No. 6:
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LH159 1 15.2 1.18 1.55
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LH160 1.3 154.0 7.32 13.50
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LH219 1 38.5 0.92 1.73
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LH220 1.3 663.0 15.63 18.38
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LH221 1.3 252.0 5.33 6.37
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LH222 1.3 232.0 5.45 7.17
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LH223 1.3 375.0 9.78 3.95
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LH224 1.3 202.0 7.76 3.44
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LH227 0.5 543.0 13.65 5.56
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LH229 1 334.0 12.28 9.82
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LH230 1 125.0 4.61 5.23
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LH231 1.1 65.4 5.01 6.69
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Mineralized zone No. 5:
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LH311 1 10.1 4.36 5.26
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LH313 1 10.8 8.81 6.02
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LH169 0.7 3.6 2.77 2.00
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Silver Dragon's Chinese subsidiary Sino-Top has been conducting an aggressive exploration campaign at Liangdi since the start of this year's drilling season, which includes tunneling and drilling projects, in order to define the extensions and depths of the 27 mineralized bodies that have been revealed so far from the surface geological work. Additional samples from these ongoing exploration projects are being taken and sent to the lab for chemical analysis.
"We are excited about the latest results of our trenching and tunneling projects," stated Dr. Tiebing Liu, P. Geo., Silver Dragon's geological advisor, "which have shown that the mineralized bodies have a tendency of extending in thickness from surface to underground, with increasing grades of Silver, Lead and Zinc. This further strengthened our belief that the Liangdi Silver-Lead-Zinc exploration area has very good ore-forming potentials."
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.
About Liangdi
The Liangdi exploration area covers 32.03 square kilometers and is located approximately 650 kilometers north by northeast of Beijing in Chifeng, Inner Mongolia. Most of the exposed rocks in this area are Late Yanshanian fine granular K-feldspar granite and coarse granular granite, and the sedimentary strata, Upper Permian Linxi Formation sandstone, occurs at the corner of the area. Within the granite intrusion, there are many veins of granite, quartz porphyry, and altered granite, trending NW mostly. The altered late magmatic veins are of silicification, tourmalinization, chloridization. Some veins contain Silver-Lead-Zinc mineralization and reach industrial grades. Exploration activities completed by Silver Dragon to date include 250m tunneling, 3,153m(3) trenching and 560m drilling, resulting in the discovery of 27 Ag polymetallic mineralized bodies. The most significant discovery was that, besides identified massive galena and sphalerite filling veins both on the surface and underground tunnels, the host rocks, being silicified masses, also contain Ag polymetallic sulfides. Geophysical survey proved the veins are consolidated underground to form massive siliceous ore bodies. Tunneling revealed the thicknesses of mineralized bodies are growing underground with increasing grades, suggesting great ore-finding potentials.
The Liangdi Silver Property is wholly-owned by Sanhe Sino-Top Resources & Technologies Ltd. ("Sino-Top"), a Chinese company of which Silver Dragon currently owns 90% and shall own 40% after receiving Ministry of Commerce approval as per the equity transfer agreement with Huaguan Industrial Corp. (see press release of July 14, 2008).
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 Liangdi Silver Project, 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 mineralization 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.