Silver Dragon Reports on 2011 Exploration Results and Discloses 2012 Exploration and Development Plans for its Laopandao Silver-Polymetallic Project

BEIJING, April 10, 2012 (PRIME NEWSWIRE) - Silver Dragon Resources Inc. (OTCBB: SDRG) ("the Company") is pleased to announce that it has completed a geological report on the results from the 2011 exploration program at its  Laopandao silver-copper-tin polymetallic project in Inner Mongolia, Northern China.

 

After five years of exploration, Laopandao has evolved into an advanced exploration project with a completed initial NI 43-101 compliant resource estimate, and a metallurgical analysis in progress. An extensive underground tunnel system has been constructed and a drilling, trenching & tunneling program is well underway with a total of 7,174 meters of surface trenching, 14,632 meters of diamond drilling, and 2,822 meters of underground exploration-development (tunneling) completed to date. Some of the highlights from the report are as follows:

• In 2011, the exploration work focused on mineralization zone III and included 308 meters tunneling, 192 pieces of sampling and assaying, as well as hydrogeological, engineering, geological, and environmental surveys within the property demonstrating a potential viable operation.  
• Exploration to date has demonstrated economic tin resources in mineralization zone III with more than 1% tin discovered in many areas including in mineralized bodies III-10 and III-12. (See Tables 2 & 3).  
• 21 mineralized bodies have been defined in mineralization zone III with several mineralized bodies of tin defined by tunneling (See Figures 1 & 2).  
• The recalculation of tin resources in mineralization III shows the total amount of polymetallic ore reaching 2,657,105 metric tonnes (332 [indicated] + 333 [inferred] category resources following Chinese Geological Exploration Standards) with 11,383 metric tonnes (25 million pounds) of tin, demonstrating  significant resource potential.  
• Two groups of samples have been collected for metallurgic testing.  The test results are expected during the second quarter of 2012, which will provide basic economic parameters for a pre-feasibility study.  
• In 2012, further exploration plans, including drilling and tunneling have been designed to establish resources with higher categories.  Plans to convert these Chinese resource estimates into National Instruments 43-101 standards have also been made.

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