Silver Dragon Resources (OTCBB: SDRG) has been issued a new exploration license for its Dadi Property in Inner Mongolia, China, under the name of Inner Mongolia Guangda Mining, Ltd. Silver Dragon and its Chinese Joint Venture partners are currently implementing a major surface and underground exploration program at Dadi during the 2010 exploration season, consisting of 10,000 metres of diamond drilling, 2,000 metres of underground exploration-development, and 2,000m of trenching. This program will be completed later this year, and the annual geological report and an accompanying metallurgical testing report will subsequently be provided to form the basis for a mining license application. Sino-Top’s management anticipates that the Dadi property will be constructed into a silver, lead, and zinc producing mine in 2011.
Silver Dragon Resources Inc. (OTCBB: SDRG) continues to make progress at Dadi based on its 2010 drill program, highlights of which include the following:
- Significant silver, lead and zinc mineralization is continuously being revealed by drilling, tunneling, and trenching.
- Three mineralization intervals have been revealed by drill hole ZK1203. The third mineralized interval is 4.7m wide with average grades of 279 g/t Ag, 2.5% Pb, and 4.6% Zn. The highest grades of this interval are 708 g/t Ag, 6.1% Pb, and 8.0% Zn (1.2m wide).
- In the PD2 mineralization zone, three transverse drifts revealed a new mineralized body . The widest part of the mineralized body at transverse drift NCM01 is 21.4m with average grades of 133.5 g/t Ag, 1.3% Pb, and 3.1% Zn. Within this interval, the richest mineralization is 1,875 g/t Ag, 13.1% Pb, and 20.2% Zn (0.9m wide).
- Surface trench No. 0102 revealed a significant mineralized interval with 6.1m width and average grades of 347.7 g/t Ag, 6.0% Pb, and 0.4% Zn. The highest grades in this interval are 1,272 g/t Ag, 19.0% Pb, and 1.1% Zn (1m wide).
- Sino-Top’s management intends to develop the Dadi property into a producing mine in 2011.
Silver Dragon Resources Inc. (OTCBB: SDRG), which has released news regarding advancements to its properties in China, continues to advance its property in Mexico as well based on today’s milestone achievement, approval from the Mexican Federal Environmental Agency of the Company’s Environmental Impact Manifest for the Cerros las Minitas.
The significance of today’s announcement is that this approval allows the Company to commence construction the Cerros las Minitas silver mine and represents a key regulatory requirement in proceeding towards production.
Silver Dragon Resources’ (OTCBB: SDRG) Dadi property is slowly but surely coming into its own and potentially exceeding everyone’s expectations. According to an independent technical report, the Company can confirm that silver, lead, and zinc mineralization is exposed on surface and underground as both oxides and sulphides in two deposits referred to a PD-1 and PD-2. Both deposits exhibit good continuity along strike and down dip, each with excellent potential for additional discoveries, as well as along parallel structures. Below please find highlights from the report:
- The weighted average grade of all of the samples collected during the 2009 exploration program is 187.75 gpt silver (Ag), 1.98% lead (Pb), and 2.34% Zinc (Zn);
- The most significant drill intercept was 2,937 g/t silver, 25.96% lead, and 29.95% zinc over a 2.9 meter interval;
- Independent confirmation sampling by Southampton Associates Inc., and assaying by SGS Toronto (an ISO approved Laboratory), confirms the order of magnitude of the assay results reported;
- The proposed 2010 surface and underground exploration program, which includes 10,000 meters of drilling, 2,000 meters of tunnelling, and 2,000 meters of trenching are designed to define and optimize the variables required to support a scoping study by Q-4, 2010; and
- The proposed Dadi exploration program budget of $US3.3 million, of which Silver Dragon’s 40% share is fully-funded, commenced in April 2010.
We are excited by the results from the 2009 drill program and look forward to the 2010 program and the continued success which we expect to find.
Silver Dragon Update at Laopandao: Significant Amounts of Tin, Planned 5,100 Meter Drill Program, and Expected Resource EstimateMay 4, 2010
Silver Dragon Resources Inc. (OTCBB: SDRG), in an update on its Laopandao property in Inner Mongolia, China, has disovered significant mineralization resulting from six diamond drill holes of more than three thousand meters which traced 21 mineralized zone deposits. In short, the 21 mineralized zones averaged from 0.240 % Tin (“Sn”) over 3.4 m to 0.506% Sn over 9.2m with minor amounts of silver and copper, including an intersection of 34.08% Sn over 0.4 metres.
To further define the potential resource, Silver Dragon and its Chinese joint venture partners are planning a major surface and underground exploration program at Laopandao during 2010. This program will consist of 5,100 metres of diamond drilling, 1,300 metres of underground exploration-development and 1,000m of trenching. The Company’s exploration efforts are expected to result in preliminary resource assessment in Q4-2010.
These are fantastic results from just 6 drill holes, which with the planned 2010 exploration program, are expected to keep getting better. We look for more similar results from the Company going forward, at Laopandao as well as across the Company’s other properties.
Silver Dragon (OTCBB: SDRG) recommends to its shareholders that they reject the exchange offer submitted by Guardians of Gold and Nirek Resources and that they do not tender their shares to the offer. Simply stated, Silver Dragon doesn’t believe the offer is representative of the Company’s long term value.
Silver Dragon (OTCBB:SDRG – News) has completed an initial National Instrument 43-101 compliant technical report for its Dadi Silver Polymetallic property in Inner Mongolia, China, of which Silver Dragon has a 40% interest. The report is available upon request from the Company, and request we did. Here’s how it breaks down.
Mineralization was defined in two zones, PD1 and PD2. Within each zone, both indicated and inferred resources were identified. The following table was compiled directly from information provided in the report, no calculations were made.
Using current prices for silver ($15), lead ($0.90), and zinc ($0.90), we used the above information to calculate an indicated resource of approximately 13.1 million silver equivalent ounces and an inferred resource of approximately 31.7 million silver equivalent ounces, as illustrated in the chart below. That’s almost 45 million combined silver equivalent ounces.
Keep in mind too that this resource is the result of only limited drilling and tunneling on a small portion of the overall Dadi property. As a result, the upside opportunity for this award winning property is unknown.