TORONTO, July 13, 2009 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce further results and progress from tunneling and trenching work recently completed at its Liangdi Silver-Lead-Zinc polymetallic project in Inner Mongolia, northern China.
In 2008, a comprehensive exploration program of the Liangdi property was completed, consisting of 2,323 meters (m) of drilling, 1,427 m of tunneling, and 595 m3 of trenching. The exploration program concentrated principally in Exploration Area No. II, highlights of which include the following:
* Tunnel PD1 (with an ore drift and several transverse drifts) and five drill holes revealed five major mineralized bodies and several smaller mineralized bodies. * Mineralized Body II-6 is the most significant of these bodies in that it contained the highest silver grades. This body, which is 350 m long and between 1.0 - 8.7 m wide, returned grades as high as 663g/t silver, 15.63% lead, and 18.38% zinc while averaging 98.3g/t silver, 2.54% lead, and 1.47% zinc. * Parallel to Mineralized Body II-6 are other mineralized bodies, including II-4, II-5, II-7, and II-8, which varies in length and which are rich in lead and zinc. * It is estimated that the Liangdi property has the potential for industrial development.
Throughout the 2008 exploration season, major exploration projects were arranged and completed at the Liangdi property to evaluate the silver-lead-zinc mineralization zones within Exploration Area No. II (Fig. 1), located in the western part of the property. A total of 2,323 m of drilling (6 holes), 1,427 m of tunneling (2 tunnels), and 595 m3 of trenching projects were completed. The total exploration cost was RMB 4,850,000 (US ~$690,000).
Within Exploration Area No. II, two tunnels and five drill holes revealed more than ten silver-lead-zinc-tin mineralized bodies with varied lengths and widths. Generally, they are of northwest strike and parallel to each other, occurring within granite intrusion (Yangshanian in age y5^3). Alteration zones containing mineralized bodies consist of silicification, tourmalinization, chloritization, epidotization and limonitization. Silver-lead-zinc mineralization is a fracture filling hydrothermal vein type.
The significant mineralized bodies have been identified by tunnel PD1 and the drill holes operated at Exploration Lines No. 11 and No. 15 (Figures 2, 3 and 4 and Tables 1 & 2). In Fig. 2, the identified mineralized bodies are mainly II-4, II-5, II-6, II-7 and II-8. In addition, smaller mineralized bodies II-4-1, II-4-2, and II-4-3 have also been discovered.
Among them, Mineralized Body II-6, which was exposed on the surface and found in 2007, is the most significant, being 350 m long, 1.0-8.7 m wide, and 4.1 m wide on average, with roughly 250 m of dipping extension with 70 degree-80 degree dip angles and southwest dip direction (Figures 3 & 4). The highest grades are 663g/t silver, 15.63% lead, and 18.38% zinc (sample LH220 at ore drift PD1) and the average grades 98.3g/t silver, 2.54% lead, and 1.47% zinc. Unlike other mineralized bodies, Mineralized Body No. II-6 contains significant silver grades. A rough estimation of the silver-lead-zinc resource shows that Mineralized Body No. II-6 has the potential for industrial development.
Silver Dragon is considering new exploration and/or development plans for the Liangdi property based on currently-obtained exploration results.
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.
Links to Tables and Figures
Table 1 Assay Results of Tunnel PD1
http://www.silverdragonresources.com/Upload/PR0709TAB1.pdf
Table 2 Assay Results of Drill Holes
http://www.silverdragonresources.com/Upload/PR0709TAB2.pdf
Fig. 1 Geological Map of Exploration Area No. II at Liangdi Property (The blue square area is Fig. 2)
http://www.silverdragonresources.com/Upload/PR0709001.JPG
Fig. 2 Tunnel PD1 sampling plan (See also the blue square area in Fig. 1, which shows the location)
http://www.silverdragonresources.com/Upload/PR0709002.JPG
Fig. 3 Comprehensive Geological Section at Exploration Line No. 11 (See also figure 2 for drilling positions)
http://www.silverdragonresources.com/Upload/PR0709003.JPG
Fig. 4 Comprehensive Geological Section at Exploration Line No. 15 (See also figure 2 for drilling positions)
http://www.silverdragonresources.com/Upload/PR0709004.JPG
About Liangdi Lead-Zinc-Silver Polymetallic Project
Liangdi 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 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.
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.