TORONTO, Sept. 24, 2009 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to report it has commenced toll milling operations from its Cerros las Minitas silver property in Durango, Mexico.
In June 2009, Silver Dragon signed a toll-milling agreement with Besmer S.A. de C.V. of Mexico to process up to 12,000 tonnes of ore over 12 months from Cerros las Minitas (see press release dated 6/16/09). During the first two months of toll-milling, 790 tons of ore were processed, yielding 28.382 tons of silver/lead concentrates and 15.618 tons of zinc concentrates. Based on current market prices, these concentrates are valued at approximately USD $73,000.
The toll-milling agreement and subsequent concentrate sales represent significant milestones in the process of transitioning Cerros las Minitas to production. Meanwhile, the Company continues to move through the process of obtaining an environmental permit for the property. When received, this permit will enable production to commence from the Company's own mill, which was acquired in October 2008 (see press release dated 10/27/08).
"We are pleased with the commencement of our Mexican toll-milling operation, enabling Silver Dragon to graduate to the ranks of producing silver miners," commented Marc Hazout, President and CEO of Silver Dragon Resources. "Moreover, we look forward to obtaining the final environmental permit at Cerros las Minitas, which will enable production at our own mill."
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 silver producer, and China, the largest silver consumer, 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).
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About Cerros las Minitas
Cerros las Minitas is comprised of 15 concessions covering 1,413 Hectares. It is located 68 kilometers northeast of Durango, Mexico, and comprises the Cerros 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 Cerros 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.