• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Silver Dragon Resources Inc. Advances Payment to Sanhe-Sino-Top Resources & Technologies, Ltd. To Commence Work Program at Erbaohuo Silver Project in Northern China

Posted on: Thursday, 30 March 2006, 12:00 CST

Silver Dragon Resources Inc. (OTCBB:SDRG) today advanced payment of US$250,000 to Sanhe-Sino-Top Resources & Technologies, Ltd. pursuant to Silver Dragon's commitment under the Asset Purchase Agreement dated March 21, 2006 among Silver Dragon, Sino-Top and Sino Silver Corp. The payment now allows Sino-Top to commence the 2006 work program at the Erbaohuo Silver Project in Northern China.

Silver Dragon has entered into an agreement to acquire a 60% interest in Sino-Top, a Chinese company which holds the exploration and mining rights to nine properties including a mine located in the Erbaohuo Silver District in Inner Mongolia, China. The Agreement also gives Silver Dragon the right to increase its equity interest in Sino-Top up to 70%. The Agreement is subject to consent of the shareholders of Sino Silver and the receipt of the administrative consent of the local Provincial Department of Commerce in China. In the interim, Silver Dragon has committed to funding Sino-Top in order to facilitate the commencement of the work program at the Erbaohuo Silver Project.

The total work budget for 2006 is estimated at 10,749,502 RMB (US$1,360,000), which will finance the following work:

Erbaohuo Silver Mine (1620m drilling, 400m tunneling and 2000m3 trenching):

Saihanaoboa area (500m drilling and 1000m3 trenching);

Zhanxinhu area (450m drilling, 500m3 trenching and 100m shallow shafting);

Laopandao Beihou, Yuanlinzibeishan, Liangdi, Shididonggou, Aobaotugounao and Dadi (together total 800m drilling and 2500m3 trenching).

"We are pleased to have signed this Agreement with Silver Dragon Resources," commented Dr. Liu Tie-Bing, Professor at the Institute of Geology and Geophysics, Chinese Academy of Sciences, Beijing, and Chief Operating Manager of Sino-Top. "In addition to exploration of the other properties, the intention of this work program is to develop the Erbaohuo Silver Mine into a fully operational silver mine."

"Silver Dragon continues to focus on assets in China and is establishing a representative office in Beijing to administrate our projects locally," commented Marc Hazout, President and Chief Executive Officer of Silver Dragon. "I have now been appointed to the board of Sino-Top and look forward to executing our plans in China and monetizing our assets while considering further opportunities presented to us by our strategic partners. Our immediate objective is to develop the Erbaohuo Silver Mine and become an active producer in China."

Silver Dragon Resources Inc. is a mining and metal company focused on the exploration, acquisition, development and operation of silver mines in proven silver districts globally. Silver Dragon's objective is to acquire silver mining assets that contain promising exploration targets, have highly-leveraged, out-of-the-money silver deposits, and/or are producing properties with significant untapped exploration potential. For more information, please visit www.silverdragonresources.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that 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 market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

Source: Business Wire

More News in this Category