DURANGO, Mexico, Feb. 10, 2009 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) reports that it has reached several important milestones in advancing the Cerro las Minitas project towards production. Highlights include:
* Environmental Impact Assessment to be submitted March 23, 2009. Official review period is 90 days. * Pre-Feasibility Study in final review by independent Qualified Persons. Results expected over the next several weeks. * Land Use Change authorization expected to be granted May / June 2009. * Updated NI 43-101 Report expected in March 2009 * First Production anticipated in 4Q09
The company has documented all requirements and will submit its Environmental Impact Assessment / Manifestacion, or Manifestacion de Impacto Ambiental (MIA) for its Cerro las Minitas silver project in Durango, Mexico that includes a cyanide process for the sulfide handling and Heap Leaching process for the handling of oxides. The MIA will be officially submitted on Mar 23, 2009 to the Secretaria de Medio Ambiente y Recursos Naturales of Mexico (SEMARNAT) for review, and is the principal document in the application process for a mine operating permit. The official review period for the MIA is 90 days, during which requests for additional information may be made by SEMARNAT; additionally the company will be presenting during this period an indicative technical study (TJ) for change of floor use and a study of environmental risk (ERA) for the processes of flotation and heap leaching. On approval the company will have all the necessary permits to begin a mining operation according to Mexican laws.
During 2008, the Company systematically advanced a Pre-Feasibility Study with the expectation of submitting an application to the MIA for mining operations, supported by the acquisition of an upgradeable 50 tonne per day mill (see our October 27, 2008 Press Release "Silver Dragon Acquires Mill, Seeks to Begin Production at Cerro las Minitas").
Additionally, Vector Engineering has been revising Silver Dragon's National Instruments 43-101 resource report for Cerro las Minitas. Both the Pre-Feasibility Study and revised NI 43-101 report are undergoing final review by independent Qualified Persons, the latter of which will result in re-estimation of the property's resources. Completion of this review will also enable the Company to present a full set of financial and operating parameters used to determine the economic viability of the project.
"This submittal of the Environmental Impact Assessment is an important milestone in our effort to expediently commence production," stated Marc Hazout, President and CEO of Silver Dragon Resources. "We believe we have produced an exceptionally complete document that should receive approval within the official review period. We are also looking forward to disclosing the results of our revised NI 43-101 resource report, confident that it will support internal studies showing Cerro las Minitas Project to be extremely viable at current silver prices. We expect to begin committing to equipment and development expenses for the operation of the mill (already staged at the Project) and construction of the tailings pond in order to maintain a new target time line for production in the fourth quarter of 2009."
Moreover, the Company submitted an application for a Land Use Change authorization to re-classify the mine site area usage from desert land to mining property. The authorization is expected to be granted by May/June 2009, and can be activated by paying the prescribed fee. Payment of this fee will be made in conjunction with the receipt of approval of the MIA. The costs for the environmental license is expected to be $US 20,000 - $40,000 based on the number of hectares to be reclassified.
Finally, Silver Dragon is preparing to execute agreements with two smelters to receive and process concentrates from the Cerro las Minitas Project. The Company has stockpiled approximately ten thousand tonnes of ore to date, which will be converted into concentrates for sale to these smelters. The company is also considering the acquisition of further concessions in order to increase its land holdings.
About Silver Dragon Resources Inc.
Silver Dragon Resources Inc. (OTCBB:SDRG) is a mining company focused on the acquisition, exploration, development and operation of silver mines in proven silver districts 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: http://www.silverdragonresources.com (now available in Chinese).
The Silver Dragon Resources Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4242
About Cerro las Minitas
Cerro las Minitas is comprised of 15 concessions covering 1,413 Hectares. It is located 68 kilometers northeast of the city of Durango, Mexico, and comprises the Cerro las Minitas mining district, part of the prolific silver belt of the Sierra Madre Occidental. Silver Dragon Resources Inc., through its wholly owned Mexican Subsidiary Silver Dragon Mining de Mexico S.A. De C.V., acquired the exploration and mining rights to the property in March 2006. Pictures of the mill can be seen on the Company's website at http://www.silverdragonresources.com.
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 Cerro las Minitas Silver Project, outcome and timing for the completion of further assays and metal amounts in partial assay results as well as production expectations 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.