DURANGO, Mexico, Aug. 14, 2008 (PRIME NEWSWIRE) -- Silver Dragon Resources Inc. (OTCBB:SDRG) is pleased to announce that the Company has signed an agreement with Vector Engineering Inc. of Grass Valley, California to update a previously prepared National Instrument 43-101 technical report (see new releases dated February 6, 2007 and August 30, 2006).
The updated NI-43-101 technical report will cover five (5) new mineralized zones which were discovered during the Company's exploration programs in 2007 and 2008 at the Company's Cerro las Minitas Project in Durango, Mexico.
Silver Dragon originally retained Vector Engineering in August 2006 to carry out an independent technical study of Cerro las Minitas, in particular to confirm previous mineral resource estimates and to reclassify the resulting mineral resource estimate in accordance with NI 43-101 classification criteria.
The NI 43-101 report will follow the guidelines specified by the Canadian Council of Professional Geoscientists ("CCPG") and will include property description and location, history, geological setting, deposit types, mineralization, exploration, drilling, sampling method and approach, sample preparation, analyses and security, data verification, adjacent properties, mineral processing and metallurgical testing, mineral resource and mineral reserve estimates, as well as other relevant data and information. General tasks to be completed include: (i) a geologic examination of the mineral property; (ii) a compilation and review of all existing documents and data; (iii) preparation of a summary of the documents and data in accordance with NI 43-101 requirements; and (iv) preparation and submission of the NI 43-101 technical report.
"This initiative represents the further development of our world-class Cerro las Minitas silver project," commented Marc M. Hazout, President and Chief Executive Officer of Silver Dragon Resources. "We have been working to expedite the development of this project and are excited to have an independent firm complete a NI-43-101 technical report on these new discoveries and results of the 2007-2008 work program."
The Company expects that the report will be completed over the next 6-8 weeks and will be released by fall of 2008.
About Vector Engineering
Vector Engineering, Inc. is one of the leading engineering and consulting firms in the world specializing in the application of civil engineering, hydrogeology, geology, and geotechnical engineering to mine waste management, heap leach pad design, tailings disposal system design, construction support services and provides a variety of mining support services. Vector also has an extensive geotechnical laboratory. Today, Vector has a staff of over 500 engineers, scientists and planners involved in major projects throughout the world. With offices across the Americas, Asia and Australia, and 22 years of experience, Vector is one of the most geographically-diverse companies in its class. Vector is part of the Ausenco group of companies. For more information, please visit the Company's website at: www.vectoreng.com
About Cerro las Minitas
Cerro las Minitas is comprised of 15 concessions covering 1,413 Hectares. It is located 68 kilometers northeast of the city of Durango, Mexico and comprises the Cerro las Minitas mining district, part of the prolific silver belt of the Sierra Madre Occidental. Silver Dragon Resources Inc. through its wholly owned Mexican Subsidiary Silver Dragon Mining de Mexico S.A. De C.V. acquired the exploration and mining rights to the property in March 2006.
About Silver Dragon Resources Inc.
Silver Dragon Resources Inc. is a mining and metal company focused on the acquisition, exploration, development and operation of silver mines in proven silver districts exclusively in China and Mexico. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, and/or producing properties with significant untapped exploration potential. It is management's objective to grow Silver Dragon into a significant silver producer by developing Cerros las Minitas in Mexico and the nine Erbahuo properties in China. With operations in Mexico, the world's leading producer of silver, and in China, the world's largest consumer of silver, Silver Dragon is prepared to participate in China's increasing demand for silver. For more information, please visit the Company's website at: http://www.silverdragonresources.com (now available in Chinese).
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Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
The statements contained herein which are not historical, such as statements regarding the exploration and development of the Cerro las Minitas Silver Project, outcome and timing for the completion of further assays and metal amounts in partial assay results, are forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," "projects," "aims," "potential," "goal," "objective," "prospective," and similar expressions, or that events or conditions "will," "would," "may," "can," "could" or "should" occur. Information inferred from the interpretation of assay results and information concerning mineralization zones may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to future assay results, delays in testing and evaluation of assays, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.