BEIJING, Jan. 26, 2009 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce the discovery of significant Silver-Lead-Zinc sulfide mineralized zones through a tunneling project at its Dadi Silver-Lead-Zinc Polymetallic project in Inner Mongolia, northern China. Highlights are as follows:
- Both tunnels at the Dadi tunneling project have hit underground Silver-Lead-Zinc mineralized zones. - Preliminary assay results show that the highest grades of mineralized bodies are: 1,704 g/t Ag, 22.15% Pb and 2.4% Zn in Tunnel PD02 (sample DH661); 744 g/t Ag, 16.16% Pb and 4% Zn in tunnel PD01 (sample DH767). - Underground mineralized zones discovered are composed of both primary (sulfide) and oxidized Silver-Lead-Zinc mineralized bodies, in which massive galena veins contain high silver content. - By the end of December 2008, the tunneling project revealed two underground mineralized zones that were 52 meters and 31 meters long, respectively, and are not closed. Longer extensions of the mineralized zones are predicted, and will be announced when further exploration results are obtained.
The work done in the 2008 exploration season was based on the surface findings of the previous year, when the East and West mineralization areas, each with significant surface mineralization, were found through a trenching project. A tunnel about 50 meters below the surface was completed in both the East and West mineralization areas.
At the end of December 2008, Tunnel PD02 in the east mineralization area was 160 meters in total length, comprised of both ore drifts and transverse drifts (see Figure1 and Table 1). The main transverse drift revealed 6.8 meters of mineralization averaging 441.62g/t Ag, 5.69% Pb, and 1.20% Zn in the 64 meter to 70.8 meter interval. All the samples were collected by the channeling method ((10cm)(3cm)(sample length)) and analyzed by ordinary chemical methods at the Yanjiao Central Laboratory of the North China Nonferrous Geological Survey Bureau, located in Sanhe City, 35 kilometers east of Beijing.
The highest grade among the samples reached (1.0 meter length) was 1,704 g/ t Ag, 22.15% Pb, and 2.40% Zn. This mineralized zone trends northwest and dips northeast at dip angles of 72 degrees-75 degrees. The length of the mineralized zone was 52 meters and not closed, while its width has not yet been defined. Significant mineralization is in the form of primary (sulfide) massive galena veins with oxidized multi-metal mineralization bodies in between (see Figures 2 and 3).
Figure 2 Tunnel PD02 in East mineralization Area of Dadi
(A) Starting position of tunnel and surface trench;
(B) mixed type (primary and oxidized) Silver-Lead-Zinc mineralized
body with massive galena veins in the tunnel.
A Full Size Image can be downloaded at
http://www.silverdragonresources.com/Upload/NR2009JANA02.jpg.
Figure 3 Close-up View of Silver-Lead-Zinc mineralization in tunnel
PD02
(A) Galena veins with oxidized ore in the middle;
(B) Massive galena vein occurs in oxidized mineralized body;
(C) & (D) oxidized mineralizing body with some primary galena veins
(light pale in color).
A Full Size Image can be downloaded at
http://www.silverdragonresources.com/Upload/NR2009JANA03.jpg
The aim of tunnel PD01 was to reveal underground extensions of surface mineralized zones in the West mineralization area. At 61 meters into the tunnel, however, a new south-north striking mineralized zone with 1.0 - 1.5 meter width was discovered (see Figure 4 and Table 2). Assay results show that the highest grade of a sample (0.4 meter sample length) reached 744 g/t Ag, 16.16% Pb, and 4% Zn. The silver content of some samples reached several hundred grams per tonne, plus high lead and zinc values.
At present, both mineralization zones discovered by tunnel PD01 and tunnel PD02 are fully mineralized zones, and the silver contents of over three quarters of the samples collected within the mineralization zones are higher than the industrial cutoff grade (40 g/t per meter). The discovery of the underground primary Ag-Pb-Zn mineralization zones are a significant clue for further exploration aimed at seeking more potential resources at Dadi.
"We are very excited about the good results from the tunneling program at our Dadi project and expect more achievements, to be released as further assay results become available," stated Dr. Tiebing Liu, P. Geo., Silver Dragon's geological advisor. "To facilitate the 2009 exploration program, a paved road to Dadi was built to enable the transportation of drilling rigs. We intend to launch a comprehensive exploration project, including tunneling, drilling, and trenching, so as to further control the mineralized zones, especially their dipping extensions, which have been well indicated by geophysical anomalies."
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.
Table 1 Tunnel PD02 East Mineralization Area of Dadi (Assay results
of underground sample)
----------------------------------------------------------------
Tunnel Sample Sampling position (m)
Number Number ----------------------------------
From To Sample
Length
---------------- ------------ ----------- ---------- -----------
DH651 9.4m 0.6
------------ ---------------------- -----------
DH652 26.8 27.8 1
------------ ----------- ---------- -----------
DH653 27.8 28.8 1
------------ ----------- ---------- -----------
DH654 28.8 30 1.2
------------ ---------------------- -----------
DH655 59m 0.4
------------ ---------------------- -----------
PD1NCM14 DH656 61.2 62.2 1
------------ ----------- ---------- -----------
DH657 62.2 63.2 1
------------ ----------- ---------- -----------
DH658 63.2 64.2 1
------------ ----------- ---------- -----------
DH659 64.2 65.2 1
------------ ----------- ---------- -----------
DH660 65.2 66.2 1
------------ ----------- ---------- -----------
DH661 66.2 67.2 1
------------ ----------- ---------- -----------
DH662 67.2 68 0.8
---------------- ------------ ---------------------- -----------
DH665 6.7m 1
------------ ---------------------- -----------
DH666 6.7m 1
------------ ---------------------- -----------
DH669 11.4m 0.7
------------ ---------------------- -----------
DH670 11.4m 1
------------ ---------------------- -----------
DH671 11.4m 0.3
------------ ---------------------- -----------
DH674 15.5m 1
------------ ---------------------- -----------
DH675 15.5m 0.8
------------ ---------------------- -----------
NYM2 DH678 28m 0.8
------------ ---------------------- -----------
DH679 28m 0.8
------------ ---------------------- -----------
DH680 28m 0.3
------------ ---------------------- -----------
DH683 35.5m 1.1
------------ ---------------------- -----------
DH684 35.5m 0.9
------------ ---------------------- -----------
DH685 38.7m 1.4
------------ ---------------------- -----------
DH686 38.7m 0.6
------------ ---------------------- -----------
DH689 48.6m 0.3
------------ ---------------------- -----------
DH690 48.6m 0.6
------------ ---------------------- -----------
DH691 48.6m 1.1
---------------- ------------ ---------------------- -----------
DH663 5m 1
------------ ---------------------- -----------
DH664 5m 1
------------ ---------------------- -----------
DH667 11m 1
------------ ---------------------- -----------
DH668 11m 1
------------ ---------------------- -----------
DH672 18.3m 1
------------ ---------------------- -----------
SYM2 DH673 18.3m 1
------------ ---------------------- -----------
DH676 27m 1
------------ ---------------------- -----------
DH677 27m 1
------------ ---------------------- -----------
DH681 34.4m 1
------------ ---------------------- -----------
DH682 34.4m 1
------------ ----------- ---------- -----------
DH687 7.1 8.1 1
------------ ----------- ---------- -----------
DH688 8.1 9 0.9
----------------------------------------------------------------
---------------------------------------------------------------------
Tunnel Sample Assay result (%) Number of
Number Number mineralized
body
average
------------- ---------- ---------- -----------
Ag (E-6) Pb Zn
-------- ------------ ------------- ---------- ---------- -----------
DH651 11.2 0.13 0.042 *
------------ ------------- ---------- ---------- -----------
DH652 2.5 0.069 0.040 *
------------ ------------- ---------- ---------- -----------
DH653 7.8 0.21 0.085 *
------------ ------------- ---------- ---------- -----------
DH654 2.2 0.047 0.040 *
------------ ------------- ---------- ---------- -----------
DH655 3.5 0.052 0.22 *
------------ ------------- ---------- ---------- -----------
PD1NCM14 DH656 71.4 1.10 0.46 **
------------ ------------- ---------- ---------- -----------
DH657 74.8 1.68 0.45 **
------------ ------------- ---------- ---------- -----------
DH658 20.5 0.34 0.45 **
------------ ------------- ---------- ---------- -----------
DH659 386 2.63 1.30 **
------------ ------------- ---------- ---------- -----------
DH660 682 9.90 2.07 **
------------ ------------- ---------- ---------- -----------
DH661 1704 22.15 2.40 **
------------ ------------- ---------- ---------- -----------
DH662 80.4 1.15 1.30 **
-------- ------------ ------------- ---------- ---------- -----------
DH665 11.8 0.18 0.40 *
------------ ------------- ---------- ---------- -----------
DH666 315 1.65 2.06 *
------------ ------------- ---------- ---------- -----------
DH669 1.2 0.014 0.058 *
------------ ------------- ---------- ---------- -----------
DH670 126 0.86 1.69 *
------------ ------------- ---------- ---------- -----------
DH671 519 3.19 6.27 *
------------ ------------- ---------- ---------- -----------
DH674 7 0.054 0.16 *
------------ ------------- ---------- ---------- -----------
DH675 209 1.03 1.22 *
------------ ------------- ---------- ---------- -----------
DH678 708 4.18 3.76 *
------------ ------------- ---------- ---------- -----------
NYM2 DH679 818 4.83 5.5 *
------------ ------------- ---------- ---------- -----------
DH680 16.5 0.18 0.78 *
------------ ------------- ---------- ---------- -----------
DH683 9.8 0.11 0.38 *
------------ ------------- ---------- ---------- -----------
DH684 158 1.74 2.32 *
------------ ------------- ---------- ---------- -----------
DH685 6.5 0.082 0.17 *
------------ ------------- ---------- ---------- -----------
DH686 641 3.7 4.32 *
------------ ------------- ---------- ---------- -----------
DH689 2.5 0.03 0.12 *
------------ ------------- ---------- ---------- -----------
DH690 42.8 0.52 1.32 *
------------ ------------- ---------- ---------- -----------
DH691 117 0.78 4.87 *
-------- ------------ ------------- ---------- ---------- -----------
DH663 566 8.39 3.22 *
------------ ------------- ---------- ---------- -----------
DH664 276 2.52 2.26 *
------------ ------------- ---------- ---------- -----------
DH667 1.2 0.006 0.015 *
------------ ------------- ---------- ---------- -----------
DH668 1.2 0.008 0.030 *
------------ ------------- ---------- ---------- -----------
DH672 1.2 0.013 0.024 *
------------ ------------- ---------- ---------- -----------
SYM2 DH673 1.2 0.01 0.012 *
------------ ------------- ---------- ---------- -----------
DH676 1.2 0.018 0.028 *
------------ ------------- ---------- ---------- -----------
DH677 1.2 0.01 0.016 *
------------ ------------- ---------- ---------- -----------
DH681 2 0.011 0.028 *
------------ ------------- ---------- ---------- -----------
DH682 1.2 0.006 0.016 *
------------ ------------- ---------- ---------- -----------
DH687 5.8 0.044 0.44 *
------------ ------------- ---------- ---------- -----------
DH688 1.2 0.008 0.075 *
---------------------------------------------------------------------
* (Agx10-6;Pbx10-2; Znx10-2)
--------------------------
Sample length (m)
**441.62; 5.69; 1.20
------------------
6.80
Notes: PD01NCM4 - Tunnel PD02 northern transverse drift; NYM2 -
northern ore drift No. 2; SYM2 - southern ore drift No. 2. From
samples DH656 to DH622, sampling length is 6.8 meters and average
grades (per meter) are 441.62g/t Ag, 5.69% Pb and 1.20% Zn.
All assay data were made by ordinary chemical methods at Yanjiao
Central Laboratory of North China Nonferrous Geological Survey Bureau.
Table 2 Tunnel PD01 of Dadi
Assay results of underground sample
---------------------------------------------------------------------
Tunnel Sample Sampling position at tunnel
Number (m)
---------------- -------------- -------------------------------------
From To Sample
length
---------------- -------------- ------------------------- -----------
DH751 11.5m 0.7
-------------- ------------------------- -----------
DH752 11.5m 0.7
-------------- ------------------------- -----------
DH753 20m 1
-------------- ------------------------- -----------
DH754 20m 0.9
-------------- ------------------------- -----------
DH755 27m 1
-------------- ------------------------- -----------
DH756 27m 1
-------------- ------------------------- -----------
DH757 37m 1
-------------- ------------------------- -----------
DH758 37m 1
-------------- ------------------------- -----------
DH759 45.5m 1
-------------- ------------------------- -----------
DH760 45.5m 1
-------------- ------------------------- -----------
DH761 61m 1
-------------- ------------------------- -----------
DH762 61m 1
-------------- ------------------------- -----------
PD01 DH763 68m 0.7
-------------- ------------------------- -----------
DH764 68m 1
-------------- ------------------------- -----------
DH765 68m 0.3
-------------- ------------------------- -----------
DH766 73m 0.8
-------------- ------------------------- -----------
DH767 73m 0.4
-------------- ------------------------- -----------
DH768 73m 0.8
-------------- ------------------------- -----------
DH769 85m 1
-------------- ------------------------- -----------
DH770 85m 0.7
-------------- ------------------------- -----------
DH771 85m 0.3
-------------- ------------------------- -----------
DH772 92m 0.6
-------------- ------------------------- -----------
DH773 92m 0.8
-------------- ------------------------- -----------
DH774 92m 0.6
---------------------------------------------------------------------
--------------------------------------------------------------------
Tunnel Sample Assay result (%)
Number
---------------- -------------- ------------------------------------
Ag (E-6) Pb Zn
---------------- -------------- ----------- ------------ -----------
DH751 1.2 0.004 0.005
-------------- ----------- ------------ -----------
DH752 1.2 0.001 0.005
-------------- ----------- ------------ -----------
DH753 1.2 0.002 0.012
-------------- ----------- ------------ -----------
DH754 1.2 0.003 0.020
-------------- ----------- ------------ -----------
DH755 1.2 0.008 0.030
-------------- ----------- ------------ -----------
DH756 6.2 0.060 0.099
-------------- ----------- ------------ -----------
DH757 23.5 0.24 0.14
-------------- ----------- ------------ -----------
DH758 19.2 0.12 0.093
-------------- ----------- ------------ -----------
DH759 3.8 0.027 0.045
-------------- ----------- ------------ -----------
DH760 7.0 0.045 0.11
-------------- ----------- ------------ -----------
DH761 183 4.09 1.08
-------------- ----------- ------------ -----------
DH762 411 7.92 0.80
-------------- ----------- ------------ -----------
PD01 DH763 76.2 1.38 1.05
-------------- ----------- ------------ -----------
DH764 668 10.11 17.38
-------------- ----------- ------------ -----------
DH765 43.6 1.30 1.10
-------------- ----------- ------------ -----------
DH766 17.0 0.32 0.34
-------------- ----------- ------------ -----------
DH767 744 16.16 4.00
-------------- ----------- ------------ -----------
DH768 19.2 0.41 0.21
-------------- ----------- ------------ -----------
DH769 29.0 0.44 0.38
-------------- ----------- ------------ -----------
DH770 3.2 0.034 0.12
-------------- ----------- ------------ -----------
DH771 1.2 0.014 0.11
-------------- ----------- ------------ -----------
DH772 79.2 1.45 1.78
-------------- ----------- ------------ -----------
DH773 224 3.56 2.68
-------------- ----------- ------------ -----------
DH774 15.0 0.18 0.22
--------------------------------------------------------------------
Notes: All assay data were made by ordinary chemical methods at
Yanjiao Central Laboratory of North China Nonferrous Geological
Survey Bureau.
Figure 1 Map of Tunnel PD02 in Dadi
(All assay data as of early December, 2008)
A Full Size Image can be downloaded at
http://www.silverdragonresources.com/Upload/NR2009JANA01.jpg
Figure 4 Map of Tunnel PD01 in Dadi
(All assay data as of early December, 2008)
A Full Size Image can be downloaded at
http://www.silverdragonresources.com/Upload/NR2009JANA04.jpg
About Dadi Silver-Lead-Zinc Polymetallic Project
Dadi is one of the eight exploration properties of Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company which holds exclusive exploration rights to these properties located in the prolific Erbahuo Silver District in Inner Mongolia, China. Silver Dragon has a 40% ownership interest in Sino-Top. The Dadi exploration area, covering 12.48 square kilometers, is located in the Mesozoic volcanic basin in Keshiketeng County, Inner Mongolia, China.
Geologically, the Dadi property is located in the south edge of the Daxinganling metallogenic belt and at the joint between the Daxinganling mountain chain (with north-east direction) and the Xilamulunhe structure belt which trends in an east-west direction. These two structural belts are also two major ore-forming belts of China. This entire tectonic setting provides a dynamic geologic environment for the development of mineralizing systems. The major exposed rocks in the Dadi Property are Upper Jurassic Baiyinggaolao Formation dacitic tufaceous lava, dacitic tuff, rhyolitic tuff, and tufaceous sendstone and conglomerate, among which dacitic tufaceous lava and dacitic tuff are the main host rocks of mineralization. Sino-Top completed 702 meters of tunneling at Dadi in the 2008 exploration season.
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 mineralized 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.