SDRG StockQuote

See Details

Investor Center

Breadcrumb

  1. Home
  2. Investor Center >
  3. News Releases >
  4. News Release

Stay Connected

Join our social network and stay informed about our financial updates and projects

Quick Contact
Corporate Head Offices

Silver Dragon Resources Inc.
200 Davenport Road
Toronto, Ontario M5R 1J2
Canada

Phone: 416-223-8500
Toll Free(North America): 1-866-512-SDRG (7374)
Fax: 416-223-8507
info@silverdragonresources.com

Send us an email

View all contacts

News Release

Silver Dragon Discovers 1.3 meters of 1,715 g/t Silver, 9.6% Lead and 1.73% Zinc at Dadi, Reports Progress at Aobaotugounao

BEIJING, August 15, 2012 (PRIME NEWSWIRE) – Silver Dragon Resources Inc. (OTCBB: SDRG) (“the Company”) is pleased to announce recent results from the ongoing 2012 drilling program at its Dadi and Aobaotugounao Silver-Lead-Zinc polymetallic properties in Inner Mongolia, Northern China. Dadi and Aobaotugounao are owned by Sanhe Sino-Top Resources & Technologies, Ltd. (“Sino-Top”), of which Silver Dragon Resources Inc. has a 40% equity interest.
Work completed to date this year is summarized as follows:
Dadi:

  • 2,461 Meters of underground Drilling
  • 1,703 Meters of underground tunneling
  • 337 samples assayed

Aobaotugounao:

  • 2 km2 1:2,000 topographic survey
  • 2 km2 1:2,000 geological mapping
  • 6.4 km2 1:1,000 geological section survey
  • 4,509 meters of surface drilling
  • 50 samples assayed
  • 9.4 km Exploration Line Survey
  • 32 Point Engineering Survey

Exploration highlights for July are as follows:

  • Assay tests of samples taken from drill hole DH6612 reached grades of 1,715 g/t silver, 9.57% lead, and 1.73% zinc.
  • Assay tests of samples taken from Drill Hole DH6079 reached grades of 860 g/t silver, 8.39% lead, and 8.38% zinc.
  • Assay tests of samples taken from Drill Hole DH6080 reached grades of 525 g/t silver, 5.36% lead, and 4.06% zinc

Dadi Silver-Polymetallic Project
The main exploration work at Dadi focuses on mineralization zones IV, III, and II by underground drilling, ore drifting and transverse drifting (crosscut drilling).  Underground drilling has reached a total of 1,978.4m; and underground tunneling work has reached a total of 1,467.4m.

Mineralization Zone IV: The transverse drifts PD4NCM01 and PD4NCM00 are located at exploration lines 1 and 0 respectively (Fig. 1).  Based on current assay results, one sample collected within PD4NCM01 shows grades of Ag 62.2 g/t, Pb 1.76%, and Zn 0.55% (Table1).  Samples collected from PD4SCM01 (not shown in Fig. 1) show very high grades of silver, lead, and zinc (Table 2).  Sample DH6611 has Ag 283 g/t, Pb 1.94% and Zn 0.65%; and the grades of sample DH6612 reach Ag 1,715 g/t, Pb 9.57%, and Zn 1.73%.

Four underground drilling rigs are being operated at exploration lines 1 and 0 respectively (Fig. 1) and all of them hit mineralized bodies, which extend from 1,330m level (elevation) down to 1,280m level (about 50m down dip extension).  The mineralization is much stronger at deeper levels. The exact grades will be known when the assay results of the underground drilling cores become available.

Table 1 - Assay results of samples from transverse drift PD4NCM01 at mineralization zone IV

Sample number Assay sample number Sampling position Sample length (m) Sample weight (kg) Geological description Assay results
from (m) To (m) Ag (g/t) Pb % Zn %
DH6541 2012-Z-1782 29.70 30.70 1.00 6.7 Mineralized body 62.2 1.76 0.55

Table 2 - Assay results of samples from transverse drift PD4SCM01 at mineralization zone IV

Sample number Assay sample number Sampling position Sample length (m) Sample weight (kg) Geological description Assay results
from (m) To (m) Ag (g/t) Pb % Zn %
DH6605 2012-Z-1784 67.00 67.80 0.80 6.6 Mineralized body 31.8 1.14 0.19
DH6611 2012-Z-1785 1.00 2.00 1.00 11.2 Mineralized body 283 1.94 0.65
DH6612 2012-Z-1786 2.00 3.30 1.30 10.7 Mineralized body 1,715 9.57 1.73

Fig. 1 - Position map of transverse drifts and underground drillings in adit PD4 at 1,330m level

Mineralization zone II: Based on the latest assay results, four transverse drifts (CM10, CM04, CM16, and CM12) at 1,350m level hit mineralization zone II.  Among them, transverse drift CM10 contains two high-grade samples; Ag 108 g/t, Pb 1.22%, Zn 0.54 (DH6069) and Ag 169 g/t, Pb 2.1%, Zn 2.2% (DH 6072) (Table 4).  The best mineralization intervals of mineralization zone II are discovered in transverse drift CM04 (Table 5).  From 31.5m to 36.3m intervals (4.8m wide with true ore zone thickness 4.5m), the grades of all samples reach industrial levels, and the highest grades are Ag 860 g/t, Pb 8.39%, and Zn 8.38%.  The weighted average grades of these intervals are Ag 352.67 g/t, Pb 3.57%, and Zn 3.52%.
Table 4 - Assay results of samples from transverse drift CM10 at mineralization zone II

Sample number Assay sample number Sampling position Sample length (m) Sample weight (kg) Geological description Assay results
from (m) To (m) Ag (g/t) Pb % Zn %
DH6068 2012-Z-1787 20.20 21.20 1.00 8.5 Altered rock 6.2 0.10 0.15
DH6069 2012-Z-1788 21.20 21.80 0.60 9.1 Mineralized body 108 1.22 0.54
DH6070 2012-Z-1789 21.80 22.80 1.00 7.5 Altered rock 15.8 0.31 0.35
DH6071 2012-Z-1790 25.70 26.70 1.00 11.1 Altered rock 15.8 0.20 0.24
DH6072 2012-Z-1791 26.70 27.30 0.60 10.8 Mineralized body 169 2.10 2.20
DH6073 2012-Z-1792 27.30 28.30 1.00 11.3 Mineralized body 18.8 0.33 0.82
DH6074 2012-Z-1793 28.30 29.30 1.00 11.2 Volcanic rock 6.2 0.084 0.20

Table 5 - Assay results of samples from transverse drift CM04 at mineralization zone II

Sample number Assay sample number Sampling position Sample length (m) Sample weight (kg) Geological description Assay results
from (m) To (m) Ag (g/t) Pb % Zn %
DH6075 2012-Z-1794 6.30 6.80 0.50 4.5 Mineralized body 52.5 0.46 0.80
DH6076 2012-Z-1795 31.50 32.50 1.00 9.3 Mineralized body 66.5 0.75 1.06
DH6077 2012-Z-1796 32.50 33.30 0.80 9.7 Mineralized body 156 1.95 2.17
DH6078 2012-Z-1797 33.30 34.30 1.00 9.0 Mineralized body 49.5 0.48 0.79
DH6079 2012-Z-1798 34.30 35.50 1.20 12.1 Mineralized body 860 8.39 8.38
DH6080 2012-Z-1799 35.50 36.30 0.80 11.1 Mineralized body 525 5.36 4.06
DH6081 2012-Z-1800 36.30 37.50 1.20 8.0 Altered rock 8.5 0.13 0.13

 

Table 6 - Assay results of samples from transverse drift CM16 at mineralization zone II

Sample number Assay sample number Sampling position Sample length (m) Sample weight (kg) Geological description Assay results
from (m) To (m) Ag (g/t) Pb % Zn %
DH6082 2012-Z-1801 15.30 16.30 1.00 8.3 Altered rock 1.5 0.043 0.057
DH6083 2012-Z-1802 16.30 16.80 0.50 5.5 Mineralized body 58.4 0.64 0.72
DH6084 2012-Z-1803 16.80 17.80 1.00 11.2 Altered rock 2.0 0.020 0.040
DH6085 2012-Z-1804 0.00 1.00 1.00 10.0 Altered rock 1.5 0.022 0.050
DH6086 2012-Z-1805 1.00 2.00 1.00 11.0 Altered rock 1.8 0.012 0.080
DH6087 2012-Z-1806 2.00 3.00 1.00 10.4 Altered rock 2.8 0.012 0.086

Table 7 - Assay results of samples from transverse drift CM12 at mineralization zone II

Sample number Assay sample number Sampling position Sample length (m) Sample weight (kg) Geological description Assay results
From (m) To (m) Ag (g/t) Pb % Zn %
DH6048 2012-Z-1807 30.20 31.30 1.10 8.7 Altered rock 9.0 0.26 0.50
DH6049 2012-Z-1808 31.30 32.50 1.20 9.3 Altered rock 7.0 0.13 0.26
DH6050 2012-Z-1809 32.50 33.50 1.00 8.6 Altered rock 2.5 0.044 0.042
DH6051 2012-Z-1810 33.50 34.50 1.00 10.1 Altered rock 3.5 0.044 0.065

* Based on Chinese Exploration Standards, the cutoff grades are Ag 40 g/t, Pb 0.3%, and Zn 0.5%; and the lowest industrial grades are Ag 80 g/t, Pb 0.7%, and Zn 1%.  Collected samples are analyzed in Yanjiao Central Laboratory of North China Nonferrous Geological Survey Bureau.

The transverse drifts CM16 and CM12 did not hit obvious Ag-Pb-Zn mineralization (Table 6 and 7), but revealed strong alteration.  In addition, transverse drifts CM06, CM02, and CM00 are completed and the assay results are on the way.

Aobaotugounao
Up to the end of July, 9 surface drilling holes have been completed at exploration lines no. 23 (ZK2301), no. 19 (ZK1902), no. 15 (ZK1502), no. 7 (ZK0701), no. 3 (Zk0301), no. 0 (ZK0001), no. 4 (Zk0401), no. 8 (ZK0801), and no. 14 (ZK1401), respectively.   The total drilling length of these 9 holes are 2,706m and all of them hit alterations and mineralization of zinc and lead. 

Based on assay results of drill hole ZK0701, major zinc mineralization intervals are revealed (Table 8).  From drilling depth 82.05m to 87.45m intervals (total length 5.4m), the highest grades are Ag 48.5 g/t, Pb 0.26%, and Zn 28.46% (sample AH336 with drilling length 0.5m) and the average grade of zinc is 1.3% (the calculation did not take into account very high zinc grades).

The assay results of other drilling holes are not ready yet, but according to geological investigation, the main mineralization is featured by zinc.
Silver Dragon will report on further drilling progress once the assay results of the other drill holes become available.

Table 8 - Assay results of drill hole ZK0701 at exploration line no. 7 in Aobaotugounao Property

Sample number Assay sample number Sampling position Sample length (m) Sample weight (kg) Geological description Assay results
From (m) To (m) Ag (g/t) Pb % Zn %
AH331 2012-Z-2179 76.90 77.90 1.00 2.00 Altered rock 1.2 0.24 0.43
AH332 2012-Z-2180 77.90 78.90 1.00 2.40 Altered rock 2.8 0.23 0.45
AH333 2012-Z-2181 78.90 79.90 1.00 2.30 Volcanic rock 2.2 0.034 0.068
AH334 2012-Z-2182 79.90 80.95 1.05 2.30 Altered rock 4.0 0.065 0.48
AH335 2012-Z-2183 80.95 82.05 1.10 2.00 Altered rock 1.2 0.081 0.42
AH336 2012-Z-2184 82.05 82.55 0.50 1.50 Mineralized body 48.5 0.26 28.46
AH337 2012-Z-2185 82.55 83.55 1.00 2.50 Mineralized body 2.4 0.072 1.93
AH338 2012-Z-2186 83.55 84.55 1.00 1.90 Mineralized body 2.5 0.077 0.81
AH339 2012-Z-2187 84.55 85.55 1.00 2.10 Mineralized body 3.5 0.080 1.22
AH340 2012-Z-2188 85.55 86.55 1.00 2.20 Mineralized body 4.5 0.030 0.70
AH341 2012-Z-2189 86.55 87.45 0.90 2.00 Mineralized body 3.5 0.11 0.62
AH342 2012-Z-2190 87.45 88.45 1.00 2.40 Altered rock 3.0 0.13 0.48
AH343 2012-Z-2191 126.80 127.70 0.90 2.00 Altered rock 3.2 0.15 0.33
AH344 2012-Z-2192 127.70 128.40 0.70 1.50 Mineralized body 7.5 0.47 0.61
AH345 2012-Z-2193 114.55 114.85 0.30 0.80 Volcanic rock 1.2 0.030 0.060
AH346 2012-Z-2194 142.85 143.55 0.70 1.30 Volcanic rock 1.8 0.009 0.035
AH347 2012-Z-2195 143.55 144.50 0.95 2.40 Volcanic rock 2.5 0.021 0.063
AH348 2012-Z-2196 148.25 148.55 0.30 0.70 Mineralized body 14.8 1.60 1.63
AH349 2012-Z-2197 152.20 153.20 1.00 1.80 Volcanic rock 1.2 0.014 0.018
AH350 2012-Z-2198 153.20 153.70 0.50 1.40 Altered rock 2.2 0.19 0.28
AH351 2012-Z-2199 153.70 154.70 1.00 2.50 Altered rock 4.0 0.23 0.26
AH352 2012-Z-2200 154.70 155.80 1.10 2.60 Mineralized body 6.5 0.46 0.57
AH353 2012-Z-2201 155.80 156.90 1.10 2.50 Volcanic rock 1.2 0.060 0.066
AH354 2012-Z-2202 174.10 174.95 0.85 2.20 Volcanic rock 2.0 0.088 0.096
AH355 2012-Z-2203 174.95 175.65 0.70 1.80 Volcanic rock 2.0 0.077 0.069
AH356 2012-Z-2204 175.65 176.45 0.80 2.50 Volcanic rock 2.8 0.072 0.12
AH357 2012-Z-2205 176.45 177.25 0.80 2.00 Mineralized body 10.9 0.46 0.72
AH358 2012-Z-2206 177.25 178.25 1.00 2.20 Altered rock 2.0 0.093 0.17
AH359 2012-Z-2207 88.45 89.45 1.00 2.10 Altered rock 1.2 0.070 0.24
AH360 2012-Z-2208 204.05 204.95 0.90 2.00 Volcanic rock 1.2 0.013 0.029
AH361 2012-Z-2209 252.10 253.10 1.00 2.40 Volcanic rock 1.5 0.079 0.019
AH362 2012-Z-2210 253.10 254.20 1.10 2.60 Volcanic rock 1.2 0.045 0.028
AH363 2012-Z-2211 263.45 264.45 1.00 2.20 Volcanic rock 1.5 0.065 0.096
AH364 2012-Z-2212 264.45 265.15 0.70 2.40 Volcanic rock 3.0 0.054 0.091
AH365 2012-Z-2213 165.50 166.55 1.05 2.80 Volcanic rock 4.8 0.018 0.034
AH366 2012-Z-2214 147.25 148.25 1.00 2.60 Volcanic rock 1.2 0.066 0.080
AH367 2012-Z-2215 148.55 149.55 1.00 2.30 Volcanic rock 1.2 0.012 0.015

* Based on Chinese Exploration Standards, the cutoff grades are Ag 40 g/t, Pb 0.3%, and Zn 0.5%; and the lowest industrial grades are Ag 80 g/t, Pb 0.7%, and Zn 1%.  Collected samples are analyzed in Yanjiao Central Laboratory of North China Nonferrous Geological Survey Bureau.


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.

About Dadi
Dadi is one of the six exploration properties of Sanhe Sino-Top Resources and Technologies Ltd. ("Sino-Top"), a Chinese company that holds exclusive exploration rights to these properties, located in the prolific Erbahuo Silver District in Inner Mongolia, China. Silver Dragon Resources Inc. 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 (see Project location Map at: http://www.silverdragonresources.com/_img/China_Project_Location_Map.jpg).

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 Baiyingaolao Formation dacitic tuffaceous lava, dacitic tuff, rhyolitic tuff, and tuffaceous sandstone and conglomerate, among which dacitic tuffaceous lava and dacitic tuff are the main host rocks of mineralization.

A preliminary NI 43-101 feasibility study of the Dadi property was completed in Q3-2011, with the results presented in a Technical Report prepared by Southampton Associates Inc. of Toronto, Canada (see press release of September 7, 2011).

About Aobaotugounao
The Aobaotugounao property covers a total of 21.07 km2. It is approximately 9km northwest of Tongxing Township, Keshiketeng County, Inner Mongolia. Geologically, it is characterized by a hydrothermal vein Ag-polymetallic deposit within Jurassic volcanic series. Recent geological work on the property has identified 16 alteration zones, three of which are Ag-Pb mineralization zones. Major alterations are limonitization, siliconization, chloritization and fluoritization. A geophysical survey has suggested the possible existence of silver, lead, zinc and copper mineralization zones below 150 meters from surface. The 4,000 meter drilling planned for Aobaotugounao will help further define the existing mineral zones as well as identify additional mineral zones within the exploration area.

About Sino-Top
Sanhe Sino-Top Resources & Technologies, Ltd. (“Sino-Top'') was originally incorporated in 2003 as a Chinese company wholly-owned by Huaguan Industrial Corp. (“HIC''), a subsidiary of the state-owned North China Geological Exploration Bureau. Sino-Top became an American-Chinese joint venture in 2005. Silver Dragon Resources Inc. acquired Sino-Top in 2006, and currently owns 40% of Sino-Top after having sold 50% of its ownership interest to its Chinese partners. The Chinese side partners, led by Gansu Shengda Group Ltd. (“Shengda”), at 52%, and HIC, at 8%, collectively together own 60% of Sino-Top. Sino-Top holds exclusive exploration and development rights to six properties in northern China (Inner Mongolia), covering a total area of 139 km2. Sino-Top won the prestigious Prospector/Explorer of the Year Award for its Dadi Silver Polymetallic Project, at the China Mining Congress & Expo 2009 held in Tianjin, China, during October 20-22, 2009.

About Silver Dragon Resources Inc.
Silver Dragon Resources Inc. is a mining and metals 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, its six Sino-Top properties in China (particularly Dadi and Laopandao). For more information, please visit the Company's website at: www.silverdragonresources.com (available in Chinese).

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 Dadi silver-polymetallic 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.

Contact
Silver Dragon Resources Inc.
Marc Hazout, President or Alessandro Motta, Investor Relations
(416) 223-8500 or Toll Free: 1-866-512- SDRG (7374)
Email: info@silverdragonresources.com

Footer

Cautionary Note to U.S. Investors
The United States Securities and Exchange Commission (SEC) limits disclosure for U.S. reporting purposes to mineral deposits that a company can economically or legally extract or produce. We may use certain terms on this website such as "reserves," "resources," "geologic resources," "proven," "probable," "measured," "indicated" or "inferred," which may not be consistent with the reserve definitions established by the SEC. U.S. investors are urged to consider closely the disclosure in our Form 10-K. You can review and obtain copies of the latest Form 10-K filing from the SEC's website at http://www.sec.gov/edgar.shtml.