BEIJING, Aug. 21, 2007 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) today announced the signing of a Memorandum of Understanding ("MOU") between the Institute of Geology and Geophysics, Chinese Academy of Sciences ("Chinese Academy") and Sanhe Sino-Top Resources & Technologies, Ltd. ("Sino-Top") in Beijing, China. Silver Dragon owns a 90% equity interest in 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.
Under the terms of the MOU, Chinese Academy shall conduct a three-year scientific research project in the Erbahuo Silver District. The research project shall include a comprehensive study of the region through remote sensing as well as geological, geochemical, and geophysical means. The purpose of the project is to help identify the resource potential in the area, make metallogenic predictions in more targeted areas, and to acquire scientific data for further geological exploration and development of the properties. Silver Dragon shall fund the entire project, which has a total budget of RMB3 million (approximately $400,000).
"We welcome the opportunity to assist Silver Dragon in advancing the Company's properties in China," commented Professor Shen Yuanchao of the Institute of Geology and Geophysics, Chinese Academy of Sciences. "We will conduct a thorough research program to better understand the geology of the region in order to help determine the resource base. Silver Dragon's properties in the Erbahuo Silver District represent an excellent opportunity for us to apply our new methods of identifying the size of existing ore bodies."
"This is another major achievement for Silver Dragon, lending it further notable credibility in China," commented Marc Hazout, President and Chief Executive Officer of Silver Dragon. "This relationship with the Institute of Geology and Geophysics, Chinese Academy of Sciences will eventually lead to a better determination of our resources. "
About Silver Dragon
Silver Dragon 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 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. For more information, please visit the Company's website at: http://www.silverdragonresources.com
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements contained in this news release that are not historical fact, such as statements regarding the economic prospects of the company's projects, future plans or future revenues, future exploration plans and prospects, timing of development or potential expansion or improvements, and similar statements, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimates. Such risks and uncertainties include, but are not limited to, the company's ability to raise sufficient capital to fund development, changes in economic conditions or financial markets, changes in prices for the company's mineral products or increases in input costs, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in China and Mexico, technological and operational difficulties or inability to obtain permits encountered in connection with exploration and development activities, labor relations matters, and changing foreign exchange rates, all of which are described more fully in the company's filings with the Securities and Exchange Commission.