Silver Dragon reports high grade silver-lead-zinc intersections at Mongolian project

Exploration in Mongolia's Erbahuo silver district is returning high grades in drill intersections.

Author: Proactive Investors
Posted: Thursday , 05 Nov 2009

LONDON -

Silver Dragon Resources Inc (OTCBB: SDRG) reported further encouraging results from the Dadi silver-lead-zinc polymetallic project in Inner Mongolia, Northern China, where owner Sanhe Sino Top Resources and Technologies Ltd - a 40 pct affillate of Silver Dragon - during recent drilling encountered 15 mineralised intervals of high grade material.

One of the intersections in hole ZK0401 returned 15.3 metres grading on average 914.8 grams per ton of silver, 7.58% lead and 9.11% zinc.

The hole was completed to a depth of 446 metres and revealed significant silver, lead, and zinc mineralization, many of which are at greater depths, which may turn out to be new mineralized zones.

Drill hole ZK0401 is located at exploration line No. 4, the purpose of which was to detect dipping extensions of mineralised body No II, which had been revealed by near-surface tunnelling.

Silver Dragon will report more data from the ongoing drilling and tunnelling at Dadi as it becomes available.

Dadi is one of the eight exploration properties of Sanhe Sino-Top Resources and Technologies, a Chinese company which holds exclusive exploration rights to these properties located in the prolific Erbahuo Silver District in Inner Mongolia, China. The Dadi exploration area covers 12.48 square km.

Silver Dragon controls 40% of the group, the Gansu Shengda Group 52% and HIC holds 8%. Sino-Top holds exclusive exploration rights to eight properties and mining rights to one property, the Erbahuo silver mine, in Inner Mongolia, covering a total area of 261.25km2.

In 2008, the Erbahuo silver mine was spun off from Sino-Top and put under a separate entity, Chifeng Silver Dragon Resources & Technologies Ltd, a US-Chinese joint venture that is currently 70% owned by Silver Dragon and 30% by HIC.

Published courtesy of Proactive Investors - www.proactiveinvestors.co.uk