~33.4M lbs. Tin at Its Laopandao Polymetallic Project in Northern China

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BEIJING, Feb. 1, 2011 (GLOBE NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) ("the Company") is pleased to announce that it has completed an initial geological report from recently completed exploration work at the Company's Laopandao Silver-Tin-Copper-Lead Polymetallic project in Inner Mongolia, Northern China.



Since 2006, an advanced drilling program has been carried out on the project, focusing on three mineralization zones and it is these three zones which were the focus of the report. Highlights from the report are as follows:



Highlights


Mineralization zone I is featured by a silver-copper-tin enrichment and is approximately 540m long, 100m wide with a dip extension of over 300m, containing 8 mineralized bodies with average grades Ag 231.7 g/t, Cu 0.48%, and Sn 0.335%.


Mineralization zone II is also featured by a silver-copper-tin enrichment and is approximately 200m long and 80m wide, containing 16 mineralized bodies with the highest average grade of individual mineralized body at Ag 274.46 g/t, Cu 1.26 % (II-3 mineralized body), and Sn 0.185% (II-1a mineralized body) .


Mineralization zone III is characterized by tin mineralization, approximately 300m long and 200m wide and occurs within a granite porphyry intrusion. A total of 21 mineralized bodies were identified with the highest Tin ore grade at 34.08% and average Tin grade of 0.413%.


All mineralized bodies have been defined by drill holes and/or underground drifts, the samples were analyzed with internal and external verification.


The initial resource estimate of the three mineralization zones are based on Chinese National Non-ferrous Metal Resource Estimation Standards. Estimates show 4,616,370 t (metric tonnes) of ore with 318.2 t (10.2 million oz.) silver, 10,239 t copper, and 15,184.5 t tin.


The Company will continue advanced exploration of Laopandao in 2011. The company will conduct metallurgical testing on the 2010 exploration results and commission an initial NI 43-101 technical report based on CIM standards.




1. General geology and main exploration targets of the Laopandao Property



Laopandao, a key exploration project for Silver Dragon, is located in Inner Mongolia Keshiketeng County, North China and is 44.88 km2.



(Please see Fig. 1 at >http://www.silverdragonresources.com/Upload/Jan2011Tables.pdf).



In 2010, advanced geological exploration work was continued and the exploration targets were focused on mineralization zones I and III. The exploration consisted of 11 drill holes (4,696 m), 634m tunneling, and an additional geophysical survey.



(Please see Table 2 at >http://www.silverdragonresources.com/Upload/Jan2011Figure2.jpg)



(Please see Fig 3 at >http://www.silverdragonresources.com/Upload/Jan2011Tables.pdf).



The average grades of mineralization zone I are Ag 231.7 g/t, Cu 0.48%, and Sn 0.335%.



Mineralized bodies I-1 -I-7 are comprised of Silver-Copper-Tin mineralization, the mineralized bodies are light yellow to black and of lenticular shape. The metal mineral composition of ores consists of macarsite, arsenopyrite, chalcopyrite, chalcocite, tetrahedrite, pyrrhotite, cassiterite, argentite, sphalerite, and native silver. Gangue minerals are K-feldspar, quartz, sericite, calcite, and small amount of tourmaline. Commonly, the ores form disseminated structures. Alteration surrounding the mineralized bodies includes silicification, tourmalinization, sericitization, potash alteration and weak fluoritization. Mineralized body I-8 is of significant Tin mineralization with average grades Ag 51.47 g/t, Cu 0.22%, and Sn 1.35%.



Mineralization zone II is located in the south of zone I and is 250m long and 80m wide, and consists of 16 mineralized bodies.



(Please see Fig 2 at >http://www.silverdragonresources.com/Upload/Jan2011Figure3.jpg)



Mineralized body II-1(a), II-14 and II-15 are more significant.



(Please see Table 4 at >http://www.silverdragonresources.com/Upload/Jan2011Figure4.jpg)



(2) Tin mineralization occurring in Yanshanian granitic porphyry intrusion



Mineralization zone III is located in the southwest of the mineralization zone II and occurs within a granitic porphyry intrusion.



(Please see Fig 2 at >http://www.silverdragonresources.com/Upload/Jan2011Figure5.jpg)



(Please see Table 5 at >www.alschemex.com) for external assay verification.



The results of both the internal and external verification show that the original assay results are of high quality and accuracy.



5. Initial resource estimation



Based on available data, the initial resource estimation of silver, copper and tin have been carried out according to Chinese National Non-ferrous Metal Resource Estimation Standards.



Table 6 shows industrial cut off grade and the lowest industrial grades of silver, copper and tin for resource estimation.



(Please see Table 6 at >http://www.silverdragonresources.com/Upload/Jan2011Tables.pdf)



According to the above initial resource estimation results, it is clear that the exploration achievements at the Laopandao property are significant with an obvious further silver-copper -tin resources and/or reserve potential.



5. Further exploration and development plan



Further exploration at the Laopandao Property is as follows:



1. Tunneling will focus on mineralization zone III, in order to further define mineralized bodies.



2. At mineralization zone 1 and II, more drifts will be added.



3. Metallurgical testing will be conducted.



4. A feasibility study on all mineralization zones will be carried out to provide basic information for further development of the Laopandao Property.



5. The exploration database of Laopandao to date will be used to complete an initial NI43-101 technical report.



About National Instrument (NI) 43-101 and Chinese National Non-ferrous Metal Resource Estimation Standards



Assessment is preliminary in nature that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary assessment will be realized. The Securities and Exchange Commission does not recognize or accept NI 43-101 or Chinese estimate reporting standards. The reader is advised to perform the necessary due diligence and not make decisions solely based on the information in this press release.



About Laopandao



The Laopandao exploration area covers 44.88 square kilometers and is located approximately 650 kilometers north by northeast of Beijing in Chifeng, Inner Mongolia (see Project location Map at:



>http://www.globenewswire.com/newsroom/prs/?pkgid=4242