Silver Dragon Resources Inc SDRG

RE: NEWS OUT here it is

[yoyoyo9992]

Press Release Source: Silver Dragon Resources Inc. Silver Dragon Reports On Northern China Exploration Program Thursday June 7, 1:39 pm ET BEIJING, June 7, 2007 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTC BB:SDRG.OB - News) is pleased to announce 2006 results and 2007 objectives regarding the Company's comprehensive exploration programs at the Laopandao Ag polymetallic deposit (``Laopandao''). Laopandao covers 44.79 km2, is located in the Erbahuo Silver District in Northern China, and is part of the prolific Ag polymetallic ore belt known as Huanggangliang-Ganzhuermiao. Laopandao is one of Silver Dragon's key exploration targets in 2007. ADVERTISEMENT As a result of its 2006 exploration program, Silver Dragon identified three geochemical dispersion train anomalies (No. 95, No. 102, and No. 104) in the strata of volcanic rock and volcanic sediments. The anomalies, which were formed during the Permian and the Jurassic periods and are now sandwiched between massive granite bodies, are characterized by many Ag polymetallic ore-forming factors and are each extensive and largely continuous. In 2005 and 2006, geological exploration expenditures on anomalous zones No. 95, No. 102, and No. 104 totaled RMB2,051,104 (US$268,013). Anomalous Zone No. 95 Within anomalous zone No.95, there are three north to south parallel mineralization belts (I, II, and III), each with a west by northwest strike. As is further described below, the total silver equivalent resource in anomalous zone No. 95 is currently 211.75t, grading 111.9g/t. The prospective silver equivalent resource is 1,441t. Mineralization Belt No. I: Mineralization Belt No. I is a silicified limonite Ag-Cu mineralized tuff zone that is 200m long and 100m wide. An Ag-Cu ore body (I-1) has been identified, which is 100m long, 2.33m wide, trending at 110 degrees, and dipping at 20 degrees with an 80 degree dip angle. The silver resource is 3.83t, grading 117.47g/t on average. The copper resource is 98t, grading 0.30%. The total resource in terms of silver equivalent is 5.45t, grading 165g/t. The prospective silver equivalent resource may reach 116.8t. Mineralization Belt No. II: Mineralization Belt No. II is an Ag-Sn-Cu mineralization belt, with the surrounding rock mainly consisting of volcanic rock and volcanic sedimentary rock. Two ore bodies have been identified as follows: Ore Body II-1 is 150m long, 2m wide, trending at 110 degrees and dipping at 20 degrees with an 80 degree dip angle. The copper resource is 97t, grading 0.23%; the silver resource is 1.77t, grading 42.4g/t; the tin resources is 139t, grading 0.33%. The silver equivalent resource is 7.40t, grading 176.2g/t on average. The prospective silver equivalent resource may reach 21.1t. Ore Body II-2 is 150m long, 4.95m wide, trending at 110 degrees and dipping at 20 degrees with an 80 degree dip angle. The silver resource is 8.63t, grading 74.9g/t on average; the copper resource is 670t, grading 0.58% on average; the tin resource is 359t, grading 0.31%. The silver equivalent resource is 30.2t, grading 262.2g/t on average. Discovered in 2006, Ore Body II-2 represents the main ore body within anomalous zone No.95. A geophysical anomaly that is 1,700m long and 100-150m wide with a west by northwest strike was identified by geological mapping, geophysical survey, and trenching projects. Ag-Cu-Sn ore-forming anomalies were discovered during geologic, high-energy geophysical, high-density electrical and geochemical profiling along Line 6 in the western section of the anomalous zone. Anomalies with high polarization, resistivity and density overlap well. Through trenching, tunneling and drilling projects, the existence of Ag-Sn-Cu ore bodies was revealed both on the surface and in greater depths. The occurrence of the ore bodies is consistent with the polarization and resistivity anomalies. Based on the above findings, the total silver equivalent resource in this ore body is projected to be 1,134.4t. Mineralization Belt No. III: Mineralization Belt No. III is a Sn mineralization belt in tourmalinized and silicified rhyolitic tuff that is 400m long, 200m wide and trending at 100 degrees. Fifteen Sn ore bodies were identified that are each 100-300m long, 1.02-15.8m thick horizontally, trending at 100 degrees and dipping at 20 degrees with a 60-70 degree dip angle. The tin resource is 5,807t, grading 0.34% on average. The silver equivalent resource is 168.7t, grading 99.2g/t. Anomalous Zone No. 104 During geophysical electrical survey and geological mapping in this zone, a geophysical anomaly was discovered with high polarization (Ns) at 4% and low resistivity (p less than 2000 omega M). It is over 400m long from east to west (further western extensions yet to be defined) and 300m wide from north to south. Its space distribution overlaps well with the geochemical dispersion train anomaly. A limonite silicified Ag polymetallic mineralized body was seen in the volcanic rock of the Permian Dashizhai group. (Ag-Pb-Zn) Ore Body No. IV-1 was identified in this anomalous zone and inferred to be 200m long, 7.51m wide, trending 110 degrees and dipping 20 degrees with a 60 degree dip angle. The lead resource is 15,900t, grading 2.12%; the zinc resource is 2,175t, grading 0.29%; the silver resource is 13.34t, grading 17.79g/t on average. The total silver equivalent resource in anomalous zone No. 104 is 95.75t, grading 127.72g/t and the prospective silver equivalent resource is 284.8t. The total silver equivalent resource in anomalous zones No. 95 and No. 104 is 307.5t, grading 116.39g/t and the prospective silver equivalent resource is 1,725.8t. Anomalous Zone No. 102 Only four geochemical and geophysical survey profile lines were done in anomalous zone No. 102 and Lines No. 1, No. 3, and No. 4 revealed promising results, proving the existence of limonite silicified alterations. The prospective silver equivalent resource in this anomalous zone is 100t. The most significant discovery in 2006 was the existence of Ag-Sn-Cu deposits on the peripheries of a previously identified tin deposit in anomalous zone No. 95, lending credence to Ag polymetallic ore prospecting in the future. Another major discovery was an almost circular geophysical electrical anomaly that overlaps with a geochemical dispersion train anomaly in anomalous zone No. 104, and an Ag-Pb-Zn ore body that is 7m wide, providing a reliable basis for further ore prospecting in this anomalous zone. Exploration Work Completed in 2006 As part of its comprehensive 2006 exploration program, Silver Dragon completed the following: -- 7 km2 of 1:5,000 geological sketch survey; -- 6.2 km of 1:2,000 geophysical and geochemical profile; -- 4.1 km2 of 1:5,000 electrical survey; -- 1.2 km of high-density electrical measurement profile; -- 1.6 km of high-intensity electrical survey profile; -- 361 samples for general analysis; -- 1,367 samples for spectrum semi-quantitative analysis; -- 83 samples for mineralogical analysis; -- 2,000m3 of trenching; -- 213m of tunneling; and -- 662.2m of drilling (2 holes). Exploration Plan and Objectives for 2007 As a result of the planned 2007 exploration work, the following resources or reserves are expected to be discovered: copper 15,000t, silver 250t, tin 3,000t, lead and zinc 20,000t. The 2007 work, which is expected to consist of the projects detailed below, seeks to identify 700.5 tonnes of accumulated silver equivalent resources/reserves (Chinese national standards 122b+333+334). The total silver equivalent resource of Laopandao is projected to be 1,825.8t. The exploration budget for Laopandao is RMB4,754,000 (US$621,194). Mineralization Belt No. II in anomalous zone No. 95 will be the key exploration target. The exploration objectives include the identification of ore bodies and ore characteristics, technical conditions for mining, ore treatment parameters, and the discovery of 122b+333 resources/reserves (Chinese national standards). Mineralization Belts No. I and III in anomalous zone No. 95 will be general prospecting targets. The exploration objectives include the preliminary identification of the space distribution of ore bodies, occurrence and ore characteristics and the discovery of 333+334 Ag polymetallic resources. Geological reconnaissance work will be carried out in anomalous zones No. 104 and No. 102. The objectives for No. 104 include the rough identification of ore bodies, including their size, occurrence, and characteristics. The objectives for No. 102 include the probe for the cause of the anomalies, the understanding of which will provide the basis for further exploration. 2007 exploration work is expected to consist of the following: -- 4.0 km2 of 1:5,000 geological sketch survey; -- 5.0 km2 of 1:5,000 geological fine mapping; -- 9 .0km2 of 1:5,000 primary halo survey; -- 1.2 km2 of 1:2,000 primary halo survey; -- 1.2 km2 of 1:2,000 geological topographical survey; -- 4.0 km2 of 1:5,000 geophysical survey; -- 5.0km of 1:2,000 geophysical and geochemical profile; -- 5.0km of 1:2,000 magnetic profile; -- 1.8 km of high-density resistivity and polarization profiles; -- 2.0 km of Eh-4 electromagnetic sounding profile; -- 6.0 km of high-energy electrical profile; -- 60 spots for high-energy in-depth sounding; -- 2,000 m3 of trenching; -- 1,000 m of tunneling; -- 1,700 m of drilling (4 holes); -- 500 samples for general analysis; -- 3,000 samples for spectrum semi-quantitative analysis; -- 60 samples for petrologic and mineralogical analysis; -- 30 samples for comprehensive analysis; -- 1 ore treatment test; -- 1 environmental engineering report -- 1 geohydrologic report Laopandao: Discoveries in 2005 and 2006 and Objectives for 2007 Ore Body Length Width Depth Ore (m) (m) (m) (1,000t) ----------------------- ----------- ------------ ---------- --------- 95# No.95 ----------------------- ----------- ------------ ---------- --------- II-1(333) 100 2.33 50 33 ----------------------- ----------- ------------ ---------- --------- II-1(333) 150 2 50 42 ----------------------- ----------- ------------ ---------- --------- II (15 bodies, 333) 100-300 1.18-15.8 50-100 1702 ----------------------- ----------- ------------ ---------- --------- II-2 (333) 150 4.95 200-300 115 ----------------------- ----------- ------------ ---------- --------- Subtotal 1892 ----------------------- ----------- ------------ ---------- --------- 104# No.104 ----------------------- ----------- ------------ ---------- --------- II-1(333) 200 7.51 100 750 ----------------------- ----------- ------------ ---------- --------- 95#+104#No.95+No.104 2642 ----------------------- ----------- ------------ ---------- --------- Objectives for 2007 ----------------------- ----------- ------------ ---------- --------- ----------- ------------ ---------- --------- Total ----------------------- ----------- ------------ ---------- --------- ----------------------- --------------------------------------------- Ore Body Average Grade ----------------------- --------------------------------------------- Cu Ag Sn Pb Zn (%) (g/t) (%) (%) (%) ----------------------- ------ ----------- ------ ------- ----------- 95# No.95 ----------------------- ------ ----------- ------ ------- ----------- II-1(333) 0.30 117.47 ----------------------- ------ ----------- ------ ------- ----------- II-1(333) 0.23 42.20 0.33 ----------------------- ------ ----------- ------ ------- ----------- II (15 bodies, 333) 0.34 ----------------------- ------ ----------- ------ ------- ----------- II-2 (333 ) 0.58 74.90 0.31 ----------------------- ------ ----------- ------ ------- ----------- Subtotal ----------------------- ------ ----------- ------ ------- ----------- 104# No.104 ----------------------- ------ ----------- ------ ------- ----------- II-1(333) 17.79 2.12 0.29 ----------------------- ------ ----------- ------ ------- ----------- 95#+104#No.95+No.104 ----------------------- ------ ----------- ------ ------- ----------- Objectives for 2007 (122b) 5000 ----------------------- ------ ----------- ------ ------- ----------- (333) 10000 ----------------------- ------ ----------- ------ ------- ----------- Total 15000 ----------------------- ------ ----------- ------ ------- ----------- -------------------- ----------------------------------- ------------ Silver Ore Body Metal (t) Equivalent -------------------- ----------------------------------- ------------ Cu Ag Sn Pb Zn Grade Metal (g/t) (t) -------------------- ------ ------ ------- ----- ------- ------ ------ 95# No.95 -------------------- ------ ------ ------- ----- ------- ------ ------ II-1(333) 98 3.83 165 5.45 -------------------- ------ ------ ------- ----- ------- ------ ------ II-1(333) 97 1.77 139 176.2 7.40 -------------------- ------ ------ ------- ----- ------- ------ ------ II (15 bodies, 333) 5807 99.2 168.7 -------------------- ------ ------ ------- ----- ------- ------ ------ II-2 (333) 670 8.63 359 262.2 30.2 -------------------- ------ ------ ------- ----- ------- ------ ------ Subtotal 865 14.23 6305 111.9 211.75 -------------------- ------ ------ ------- ----- ------- ------ ------ 104# No.104 -------------------- ------ ------ ------- ----- ------- ------ ------ II-1(333) 13.34 15900 2175 127.72 95.75 -------------------- ------ ------ ------- ----- ------- ------ ------ 95#+104#No.95+No.104 865 27.57 15900 2175 116.39 307.5 -------------------- ------ ------ ------- ------------- ------ ------ Objectives for 2007 (122b) (122b) (122b) 161.8 5000 50 1000 -------------------- ------ ------ ------- ------------- ------ ------ (333) (333) (333) (333) 423.6 10000 200 2000 20000 (Pb&Zn) -------------------- ------ ------ ------- ------------- ------ ------ Total 15000 250 3000 20000 (Pb&Zn) 700.5 -------------------- ------ ------ ------- ------------- ------ ------ Laopandao: Prospective Resources Zone Ore Body Length Width Depth Ore (m) (m) (m) (10,000 t) ------------- --------- -------- ---------- -------- ----------- 95 II-1 1000 2.33 100 69.9 ------------- --------- -------- ---------- -------- ----------- II-1 200 2 100 12.0 ------------- --------- -------- ---------- -------- ----------- II-2 1700 4.95 200-300 631.1 ------------- --------- -------- ---------- -------- ----------- II 100-300 1.18-15.8 50-100 170.184 ------------- --------- -------- ---------- -------- ----------- 104 II-1 500 7.51 200 225.3 ------------- --------- -------- ---------- -------- ----------- Subtotal 1108.5 ------------- --------- -------- ---------- -------- ----------- 102 ------------- --------- -------- ---------- -------- ----------- Total ------------- --------- -------- ---------- -------- ----------- Zone Average Grade -------------- --------------------------------------------------- Cu (%) Ag (g/t) Sn (%) Pb (%) Zn (%) -------------- --------- ---------- ---------- --------- --------- 95 0.30 117.47 -------------- --------- ---------- ---------- --------- --------- 0.23 42.20 0.33 -------------- --------- ---------- ---------- --------- --------- 74.90 0.31 0.58 -------------- --------- ---------- ---------- --------- --------- 0.34 -------------- --------- ---------- ---------- --------- --------- 104 17.78 2.12 0.33 -------------- --------- ---------- ---------- --------- --------- Sub total 0.25 40.77 0.18 0.43 0.07 -------------- --------- ---------- ---------- --------- --------- 102 -------------- --------- ---------- ---------- --------- --------- Total -------------- --------- ---------- ---------- --------- --------- Zone Metal (t) Silver equivalent ------------- ------------------------------------- ----------------- Cu Ag Sn Pb Zn Grade Metal (g/t) (t) ------------- ------ ------ ------ ------ ----- ------ ------- 95 2097 82.1 167.1 116.8 ------------- ------ ------ ------ ------ ----- ------ ------- 276 5.1 396 175.8 21.1 ------------- ------ ------ ------ ------ ----- ------ ------- 25214 324.8 13505 179.7 1134.4 ------------- ------ ------ ------ ------ ----- ------ ------- 5807 99.2 168.7 ------------- ------ ------ ------ ------ ----- ------ ------- 104 40.0 47764 7435 126.4 284.8 ------------- ------ ------ ------ ------ ----- ------ ------- Subtotal 27587 452 19708 47764 7435 155.7 1725.8 ------------- ------ ------ ------ ------ ----- ------ ------- 102 100 100.0 ------------- ------ ------ ------ ------ ----- ------ ------- Total 1825.8 ------------- ------ ------ ------ ------ ----- ------ ------- Note: Silver equivalent (total silver) calculations are based on the Shanghai market spot prices on March 23, 2007: Silver RMB3,649/kg, Lead RMB15,000/tonne, Zinc RMB28,680/tonne, Copper RMB60,400/tonne, Tin RMB106,000/tonne. Shanghai Gold Exchange: Au RMB165/g, Pb & Zn RMB21,000/tonne. About Silver Dragon 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 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: https://www.silverdragonresources.com (now available in Chinese). Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements, such as statements with respect to expected resources or reserves, and exploration targets and objectives, that 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 market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. Contact: Silver Dragon Resources Inc. Marc Hazout, President [phone] Toll Free: 1-866-512-SDRG (7374) [e-mail] -------------------------------------------------------------------------------- Source: Silver Dragon Resources Inc.