Silver Dragon Announces Discovery of Significant Silver-Lead-Zinc Sulfide Mineralized Zones At Its Dadi Polymetallic Project in Northern China


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.



            

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