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Silver Dragon Commissions Beijing Ten-star Technology Ltd. for Development of Its Erbahuo Silver Project
2008-10-02 08:00 ET -News Release
BEIJING,Oct. 2, 2008 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc.(OTCBB:SDRG) is pleased to announce that it has engaged BeijingTen-star Technology Ltd., a Chinese project management and consultingservice provider, for a feasibility study on project development of theErbahuo silver mine, which is Silver Dragon's flagship property innorthern China.
Silver Dragon intends to develop its Erbahuo silver manganesedeposit and construct a 150 tonne per day underground mine andprocessing plant in Wengniute County, Chifeng City, Inner Mongolia,China, which is expected to be fully operational before the end of2009.
The scope of the project includes the development of theErbahuo mine, the mineral processing plant and all related facilities.The final scale of the project will be a mine that can produce 150tonnes per day of silver ore, a mineral processing plant that canproduce over 50 tonnes per day of manganese sulphate and 1,000 ouncesper day of silver.
The development of the Erbahuo project is planned in stages:
-- Stage One: To build a mineral processing plant that can produce
manganese sulphate with a capacity above 50 tonnes per day.
-- Stage Two: To build the mine with a capacity of 150 tonnes per
day.
-- Stage Three: To build a mineral processing facility with a
capacity of 150 tonnes per day.
The feasibility study consists of the following tasks:
-- To collect all information that is needed to carry out the
study;
-- To carry out a full process lab test work using ore samples
from site;
-- Process design and major equipment configuration;
-- Layout design;
-- Major equipment and raw material inquiring and investment
estimation;
-- Project schedule and cash flow estimation;
-- Economical analysis.
The feasibility study is expected to be completed within threemonths. To date, Ten-star has taken 150kg of ore samples from the siteand 50kg of coal samples from the local region and shipped them to labsfor process test work. Meanwhile, a study on the mining plan is alsounderway.
In a parallel development, Silver Dragon has also commenced anew exploration program at Erbahuo silver mine for the purpose offurther expanding its resources, especially the polymetallic sulphidesat greater depths. The program consists of geophysical surveying,drilling and tunnelling. To date, the geophysical surveying competedhas revealed great potentials for in-depth mineralization. Preparationsare underway to drill and verify the mineralization targets that havebeen defined by those geophysical survey results.
About Beijing Ten-Star Technology, Ltd.
Beijing Ten-star Technology Ltd. is a Chinese project managementand consulting service provider that is based in Beijing. The Ten-Starconsulting team has significant experience in the mining projectdevelopment all over China and the Asian region. The team consists ofexperts in project management, process engineering, mineral processmining, civil engineering and construction, mechanical engineering,etc. The team leader is Mr. Xu Hao, who has six years experience in themetallurgical industry and 13 years experience in the mining industryin China, Australia and the Pacific Islands, covering a broad range ofareas including study management, project management, engineeringcoordination and equipment manufacturing management. He served asdeputy project manager of the Jinfeng Gold project - the largest Bioxacid plant in the world and the largest Gold plant in China, and wasinvolved in engineering, procurement management and overall projectcoordination. He has specialist expertise in hydrometallurgicalextraction processes, including alumina refining, cobalt, nickel,manganese, vanadium and titanium. Mr. Xu and his team are wellacquainted with Silver Dragon's Erbahuo property through theirinvolvement in a status evaluation study project commissioned by SilverDragon to Ausenco Ltd. in January, 2007.
About Erbahuo Silver Mine
Erbahuo silver mine covers an area of 1.2 square kilometers. Itis located 120 kilometers northwest of the city of Chifeng, which is450 kilometers northeast of Beijing, China and comprises the Erbahuomining district, part of the prolific silver belt on the structuraljoin where the north edge of the North China platform meets with thesouth edge of the Hercynian fold belt of the Great Xingan Mountains.The deposit is a shear zone hosted and stratabound volcanogenichydrothermal system of parallel trending and dipping mineralizationcontaining pyrolusite, psilomelane, limonite, pyrite, galena,sphalerite, chalcopyrite, and other silver related mineralization.Silver is concentrated within manganese oxides. Erbahuo used to beconsidered a silver manganese mine in a fracture zone. In recent years,however, the features of strata bound Ag deposits have been discovered,suggesting the potential for significant further resources in sulfidesthat contain silver, copper, molybdenum and other metals.
An NI43-101 technical report on this property was completed inJuly, 2007, by Micromine Consulting ("Micromine"), a resource sectorsoftware developer and consulting company headquartered in Perth,Australia.
The Erbahuo silver mine is wholly-owned by Sanhe Sino-TopResources & Technologies Ltd. ("Sino-Top"), a Chinese company ofwhich Silver Dragon currently owns 90% and shall own 40% afterreceiving Ministry of Commerce approval as per the equity transferagreement with Huaguan Industrial Corp. (see press release of July 14,2008). Under the same agreement, Erbahuo Silver Mine will be spun offfrom Sino-Top and be put under a separate entity, i.e. Chifeng SilverDragon Resources & Technologies, Ltd. ("Chifeng Silver"), anAmerican-Chinese joint venture that will be 70% owned by Silver Dragonupon completion of the relevant government approval process.
About Silver Dragon Resources Inc.
Silver Dragon Resources Inc. is a mining and metal companyfocused on the exploration, acquisition, development and operation ofsilver mines in proven silver districts globally. Silver Dragon'sobjective is to acquire silver mining assets that contain promisingexploration targets, have highly leveraged, out-of-the-money silverdeposits, and/or are producing properties with significant untappedexploration potential. It is management's objective to grow SilverDragon into a significant silver producer by developing the Cerro lasMinitas and Erbahuo projects in Mexico and China respectively. For moreinformation, please visit the Company's website at:www.silverdragonresources.com (now available in Chinese).
The Silver Dragon Resources Inc. logo is available at https://www.globenewswire.com/newsroom/prs/?pkgid=4242
Safe Harbor Statement under the Private Securities LitigationReform Act of 1995: The statements contained herein which are nothistorical, such as statements regarding the exploration anddevelopment of the Liangdi Silver Project, outcome and timing for thecompletion of further assays and metal amounts in partial assayresults, are forward-looking statements. Forward-looking statements arestatements that are not historical facts and are generally, but notalways, identified by the words "expects," "plans," "anticipates,""believes," "intends," "estimates," "projects," "aims," "potential,""goal," "objective," "prospective," and similar expressions, or thatevents or conditions "will," "would," "may," "can," "could" or "should"occur. Information inferred from the interpretation of assay resultsand information concerning mineralization zones may also be deemed tobe forward-looking statements, as it constitutes a prediction of whatmight be found to be present when and if a project is actuallydeveloped. Forward-looking statements are subject to risks anduncertainties that could cause actual results to differ materially fromthose expressed in the forward-looking statements, including, but notlimited to, certain delays beyond the company's control with respect tofuture assay results, delays in testing and evaluation of assays, andother risks detailed from time to time in the Company's filings withthe Securities and Exchange Commission.
CONTACT: Silver Dragon Resources Inc.
Marc Hazout, President
Alessandro Motta, Investor Relations
(416) 223-8500
1-866-512-SDRG (7374)
info@silverdragonresources.com