SDRG(1.75)Silver Dragon Begins Underground Development and Test Mining of the La Chiva Zone At Its Cerro Las Minitas Silver Project in Durango, Mexico
May 23, 2007 8:00:00 AM
DURANGO, Mexico, May 23, 2007 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce the beginning of underground development and test-mining of the La Chiva zone at its Cerro Las Minitas Silver Project in Durango, Mexico. The La Chiva zone is a shallow mineralized body which was discovered during drill-testing in 2006. It is estimated that the La Chiva zone contains more than 54,000 tons of oxide mineralization with grades of approximately 350 g/ton silver, 4.76% lead, and 2.59% zinc. These grades have been estimated conservatively from surface drill intercepts. Drill data also indicates the existence of a supergene enrichment zone a short distance below the present level of the Guadalupe Ramp. Upon receipt of sample development material from this zone, grade estimates are expected to increase.
Under the supervision of Silver Dragon's management, a contractor from Mexico is managing the testing and development of the enrichment zone. As of the date of this release, high grade silver, lead, and zinc deposits from the Guadalupe Ramp have been accessed and underground development has commenced. Where initially accessed, the La Chiva mineralized zone was found to be 1.7 meters wide and appeared to be of high grade. Assay results are pending. Development material is being trucked to the surface, where it is stockpiled for metallurgical testing. Material not used for metallurgical testing will be sent to toll mills in the region for the recovery of contained metals.
Two additional mineralized oxide bodies, similar to the La Chiva zone, are now known in the Puro Corazon area. The Guadalupe Ramp will also enable mining and haulage access to those bodies as the Company progresses.
Mining of the La Chiva body will allow the Company to fine-tune its mining methods, make reliable estimates of mining costs, provide bulk samples for ongoing metallurgical test work, and continue exploration for additional high-grade resources.
Preliminary flotation and leach testing of oxide material from Cerro Las Minitas has been completed. The Company has decided to begin development of the La Chiva zone to acquire representative material for more advanced metallurgical testing and to begin toll milling of excess development material to recover metals.
Drilling is now in progress to explore additional mineral targets defined in 2006 and 2007. Several significant new intercepts of mineralization have been made, but assay results are still pending. These values will be reported upon receipt.
About Cerro Las Minitas
Cerro Las Minitas is comprised of 16 concessions covering 1423 Hectares. It is located 68 kilometers northeast of the City of Durango, Mexico and comprises the Cerro 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.
About Silver Dragon Resources Inc.
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: 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 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
Toll Free: 1-866-512-SDRG (7374)