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Silver Dragon Completes Initial NI 43-101 Resource Estimate on its Laopandao Tin-Silver Polymetallic Project
Toronto, December 7, 2011 (PRIME NEWSWIRE) -Silver Dragon Resources Inc. (OTCBB: SDRG) (the "Company") is pleased to announce that an initial deposit modeling resource estimate has been completed for the Company's Tin-Silver Polymetallic project located in Inner Mongolia, China in accordance with Canadian Securities Administrators National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Located in north central Inner Mongolia, approximately 650 kilometers north of Beijing, the Laopandao Tin-Silver Polymetallic project is readily accessible along modern, inter-provincial, multi-lane highways, and secondary paved and gravel roads.
The report notes that tin-silver/lead-copper mineralization was discovered on the property during the 1970s. Subsequent prospecting, soil geochemical surveys, geological mapping geophysical surveys, diamond drilling and underground exploration/development discovered two anomalous areas on the property referred to as Anomaly 95 and Anomaly 102. Over the ensuing four decades the majority of the exploration activity focused on Anomaly 95, which contains three mineralized zones designated as Zone I, Zone II and Zone III. Each Zone contains numerous parallel west northwesterly trending lenses ranging from 1m to 7m wide which have been traced along strike by trenching and diamond drilling for up to 300 metres.
Two different styles of hydrothermal mineralization were noted on the property
- Copper-Tin-polymetallic fracture controlled vein-zone mineralization within altered volcanic rocks reporting encouraging mineralization grading 243.29 gpt silver, 0.78% copper 0.061% tin over 4.5 metres.
- Diamond drill hole ZK3002, with a tin-polymetallicmineralization within the roof or internal contact zone of granite porphyry, was reported as a best assay, averaging 34.05% tin over 0.40 metres.
The report classifies the resources on the Laopandaoproperty as Inferred Resources in compliance with the Canadian Institute of Mining (CIM) definitions of Resources and Reserves as referenced in NI 43-101 to be as follows:
Table 1 - Laopandao NI 43-101 Resource Estimate
|
Zones |
Tonnes |
Ag (gpt) |
Cu (%) |
Sn (%) |
|
Zone I |
348,971 |
115.92 |
0.40 |
0.59 |
|
Zone II |
417,633 |
58.45 |
0.41 |
0.15 |
|
Zone III |
1,835,950 |
4.24 |
0.06 |
0.38 |
|
Total |
2,602,554 |
27.91 |
0.16 |
0.37 |
|
NOTE: Cut-off grades include 0.1% Sn, 40 gpt Ag and 0.2% Cu. |
The authors of the report believe that this estimate is conservative and that confirmation of continuity could increase both the contained metals and classification of the resource. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
In addition to the estimate above, the authors of the report believe the resource potential for the Laopandao Zones I, II and II could range from 2.0 million tonnesaveraging 50gptAg, 0.15% Cu and 0.35%Sn to 4.0 million tonnesaveraging 25gpt Ag, 0.1% Cu and 0.22%Sn.
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