Initial Drill Results on Weixi Zinc Project
Thursday March 29, 2:37 pm ET
DRA.V
VANCOUVER, March 29 /CNW/ - Red Dragon Resources Corp. (the "Company") announces the following update for the Company's Weixi zinc project located in Yunnan Province, southwestern China. The Weixi project consists of five exploration concessions the company joint ventured with Chinese partners in 2006. The project has a total area of 196 square kilometres and covers similar stratigraphic units as those which host the Jinding/Lanping deposit located 130 kilometres to the south. The Jinding/Lanping deposit is China's largest zinc mine with annual production of 100,000 tonnes of zinc per year. Since acquiring the concessions, the Company has completed a surface sampling program that has outlined potentially economic concentrations of zinc mineralization in several areas over an 18 kilometre strike length.
The initial four diamond drill holes testing the Weixi project were completed in mid February at which time drilling was suspended due to heavy snow conditions at higher elevations. The target tested is referred to as the "Baluo prospect - main zone" from which surface sampling results were previously reported in News Release No. 14/06 (August 21, 2006). In this area, mineralization is exposed on surface over a continuous strike length of 700 metres with widths varying from 50 to 100 metres. A total of 61 samples of scree, dump material, and outcrop out of 254 samples collected within this area returned an average grade of 9.1% zinc, 4.8% lead, and 26.4 grams/tonne silver. This higher grade mineralization has an overall trend of northwest-southeast.
Assay results which have been received from three of the initial four holes returned no significant results and only anomalous concentrations of zinc. All drill holes intersected strong hematite and silica altered dolomitized limestone with varying degrees of fracturing and solution collapse breccias. Given the high values returned on surface, it is believed these holes were drilled into the footwall of the mineralized zone and the zone may be dipping shallowly to the east instead of to the west as initially interpreted. Appropriate drill locations were not available to test both possibilities due to the winter conditions.
Although the initial drilling results were disappointing, the Company is confident that detailed mapping will determine the controls to mineralization and future drilling will intersect similar grades and thicknesses of zinc mineralization as that sampled on surface. The Company has planned an extensive exploration program in 2007 with two drills dedicated to delineating the Baluo prospect as well as a third drill rig to test the Dadihua prospect located approximately eighteen kilometres to the north. In addition to drilling, a program of mapping, trenching and soil geochemistry will be completed over the entire land holdings to help delineate the numerous areas of zinc mineralization sampled by the Company in the second half of 2006 and reported in News Release 16/06 (September 21, 2006). This program is expected to commence in early May when snow has melted at higher elevations.
Laboratory Procedures
Drill core samples were analyzed by International Plasma Labs Ltd. in Kunming, China, an ISO9001:2000 certified laboratory. Samples arriving at the laboratory in Kunming are sorted, dried and crushed to -20 mesh. The sample is then reduced to a 250 gram charge by repeated passes through a riffle splitter and then pulverized to 90% passing -200 mesh. The sample is then rolled to assure a homogeneous particle distribution and transferred to a bag for analysis. Total copper, lead and zinc were analyzed by classical wet chemical techniques and lead and zinc oxide were analyzed by induced coupled plasma (ICP). Silver and gold were analyzed by fire assay with atomic absorption spectrometer (AAS) finish. Red Dragon Resource Corp. has inserted quality control samples in addition to quality control samples inserted by the laboratory.
Red Dragon Resources Corp. is a mineral exploration company actively involved in base and precious metals and uranium exploration in Canada and China.
On Behalf of the Board
Red Dragon Resources Corp.
Per: Alvin Jackson,
Chairman and Chief Executive Officer
The technical information in this news release has been prepared in accordance with Canadian regulatory requirements as set out in National Instrument 43-101 and reviewed by Garnet Dawson, P.Geo., Vice President of Exploration for Red Dragon Resources Corp.
Malcolm Forbes is Project Manager for Red Dragon Resources Corp. and the Qualified Person as defined in NI 43-101 on the Weixi Project. Mr. Forbes is responsible for supervising the drill program, sampling procedures and quality assurance program.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.
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