Silver Dragon closes Positive preliminary feasibility study on the Dadi Silver-Polymetallic Project
Toronto, Ontario, Canada (BUSINESS WIRE) 8 September 2011
Silver Dragon Resources, Inc. (SDRG.OB) (the “Company”) is pleased to announced that a preliminary feasibility study for the Silver Company silver-polymetallic project in Inner Mongolia, China in accordance with Canadian Securities Administrators National Instrument 43-101 Standards of Disclosure is for Mineral Projects completed.
The economic analysis estimates that a 40 g / t cut-off grade, the Dadi project will generate net cash flows over the seven-year project, the lives of U.S. $ 207 million, of which U.S. $ 82 million, the Company will accrue. The report estimates an internal rate of return (IRR) of 175% and a Net Present Value (NPV) of U.S. $ 142 million applying a discount rate of 8%. On the basis of the company 40% interest in the project, the IRR of 153% and NPV $ 55 million. These figures are based on natural resources and not on mineral reserves. The economic analysis was included in the measured and indicated resources. Inferred resources were not included into the economic analysis.
The report estimates the cost for the project at U.S. $ 11.50 per ton of ore processed and the capital cost of the mine into production are estimated at $ 13,000,000.
The key assumptions used in the estimates include a three-year average market price of $ 21/oz for silver and the market price of U.S. $ 0.96/lb for zinc and U.S. $ 1.00/lb for lead. Key assumptions include 20% dilution, 70% mining recovery and 40% cut-off grade. Metallurgical studies show 90% of lead and 40% of the silver will be included in the lead concentrate and 75% zinc and 40% of the silver will be included in the zinc concentrate. The average grade of lead concentrate is 66% lead and 2670 g / t silver. The average grade of zinc concentrate, 42% zinc and 31 g / t silver.
Marc Hazout, President and CEO, said:. “As we move to complete the approval process and the preparation for production at the Dadi, this updated study shows the economic potential of the project I am very pleased with the quality of project, as it is currently defined, and the future growth potential and satisfaction. “
The study contains a NI 43-101 compliant resource estimate and model study to test the resource estimate. The resource estimate was based on a modified method involving polygonal cut-off grades of 1 g / t Ag and 40 g / t silver. The following tables summarize appreciate the resource.
cut-off> 1 g / t AG
Measured 836 700 tons of silver (g / t) 184.7% Lead 2.19% Zinc 1.95
1.8958 million tonnes of Indicated
Silver (g / t) 196.32% Lead 1.83% Zinc 3.19
Measured
+ Indicated 2.7325 million tons of silver (g / t) 192.76% Lead 1.94% Zinc 2.81
2.4468 million tonnes of Inferred
Silver (g / t) 133.18% 1.31% Lead 2.53 Zinc
cut-off> 40 g / t AG
Measured 671 811 tons of silver (g / t) 224.46% Lead 2.63% Zinc 1.99
1.18508 million tons Indicated Silver (g / t) 305.67% Lead 2.81% Zinc 3.97
Measured
+ Indicated 1.8569 million tons of silver (g / t) 276.29 2.74% 3.25% lead, zinc
1.1734 million tonnes of Inferred
Silver (g / t) 263.89% 3.01% Lead 3.66 Zinc
determined cut-off grade solely on the basis of the silver content. Metal equivalents were not used. The resource estimate support for the economic analysis does not include inferred resources.
The full report entitled “NI 43-101 Report Preliminary Feasibility Study Dadi Silver-Polymetallic Property Keshiketeng County, Inner Mongolia, Peoples Republic of China” of 25 August 2011 and prepared for the company of Southampton Associates Inc., is on the company’s website (http://www.silverdragonresources.com).
David G. Wahl, P. Eng., P. Geo, ICD.D is president of Southampton Associates Inc. Mr. Wahl is a Qualified Person under NI 43-101 and is responsible for the above-mentioned report. Mr. Wahl has verified and the data described in this press release, including sampling, analytical and test data reviewed.
About the Dadi Polymetallic Silver Property
Dadi is one of the six exploration properties of Sanhe Sino-Top Resources & Technologies Ltd. (“Sino-Top”), a Chinese company, the exclusive exploration rights to these properties in the prolific Erbahuo Silver District in Inner Mongolia is , China. The company has a 40% stake in Sino-Top. The Dadi exploration area is 12.48 square kilometers in the Mesozoic volcanic basin in Keshiketeng County, Inner Mongolia, China
(see project map at: http://silverdragonresources.com/_img/China_Project_Location_Map.jpg).
About Silver Dragon Resources Inc.
Silver Dragon Resources Inc. is a mining and metals industry globally focused on the exploration, acquisition, development and operation of silver mines in proven silver districts. Silver Dragon has the goal of silver mining assets that contain promising exploration targets are deep in debt, out-of-the-money silver deposits, and / or producing properties with significant untapped exploration potential. It is the management acquire the target company into a significant silver producer to grow through the development of the six Sino-Top properties in China, where 40% of the shares of the company (especially the Dadi and Laopandao properties) and the Society Erbahuo Silver Mine (by the company Chifeng Silver Dragon subsidiary), even in China. For more information, please visit the website at:. Http: / / www.silverdragonresources.com (now also in Chinese)
Silver Dragon Resources is a uniquely structured company of the future in the way global resources together, they maximize the profitability in the new world economy, such as CBS Money Watch covered in the history of Silver Dragon Resources for structuring a new global market.
For more information or an interview with Silver Dragon Resources, Inc. (SDRG.OB) please e-mail or call for planning:
Marc Hazout, President & CEO
Alessandro Motta, Vice President of Investor Relations
http://www.silverdragonresources.com
info (at) Silver Dragon Resources (dot) com
Toll Free (North America): 1-866512-SDRG (7374)
416-223-8500 outside the USA / Canada
warning on mineral reserve and resource estimates:
Silver Dragon Resources Inc. is a domestic corporation that reports to the United States Securities and Exchange Commission (“SEC”) files. Information on mineralization and reserves in the Company’s reports with the SEC are required to contain the rule to comply with the SEC Industry Guide 7th This press release and do not meet with the study guide 7 because they have been prepared in accordance with Canadian Institute of Mining, Metallurgy and Petroleum standards that were adopted by NI 43-101 –. Accordingly, we advise you that the information contained in this press release and may not be comparable with information in the company’s SEC reports and other information published under the United States federal securities laws and the applicable rules and regulations by other U.S. companies contain. In particular, the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource”, as in this press release and the study is defined to be used and must be published by NI 43-101, but these terms are not in Guide 7 and are normally not in reports and registration statements filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into mineral reserves, with proven efficiency. “Inferred mineral resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It can not assume, assumed that all or part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or prefeasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of inferred mineral resources, or are there these economically or legally mine in the situation. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations;. But the SEC normally only permits issuers to mineralization, which has no “reserves” by SEC standards as in place tonnage and grade without reference to unit measures report
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein that are not historical, including statements regarding the exploration and development of the Dadi project, estimates of project performance, cost and other metrics future and the company’s plans and intentions 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,” “anticipate,” “believes,” “intends,” “estimates,” “projects,” identifies “goal,” “potential,” “goal,” “goal,” “potential” and similar expressions or that events or conditions “will,” “would,” “may,” “may,” “could,” or “should”. The estimates of the mineralization can also identify forward-looking statements as a prediction of what might be found, when and if a project is actually developed mind. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements are expressed, including, but not limited limited to, financing risks, volatility of metals and other prices and costs, uncertainty of mineralization estimates lack of operational control of projects, political risks, regulatory risks, operational risks, certain delays beyond the company’s control with respect to future assay results, delays in testing and evaluation of assays, as well as other risks detailed from time to time in Company filings with the SEC.
Silver Dragon Resources, Inc. (SDRG.OB)
Silver Dragon Resources Guardians of Hidden Treasures http://www.SilverDragonResources.com
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