Message #15 From:
NewsBot Date: March 4, 2007 11:30:00 PM
AADG News Asian Dragon Group Inc. Enters Final Negotiations With Major China Gold Producer, Luoning Luyuangou Gold Mine With High Grade Gold Assay Values of 1,185 g/t
LUOYANG, China--(BUSINESS WIRE)--Asian Dragon Group Inc. (OTCBB:AADG) (FWB:P2J1) (WKN:A0KE7Z) is excited to report Asian Dragon has entered final negotiations with Luoning Huatai Mining Development Company Limited (Huatai), to acquire an interest in the Luoning Luyuangou Gold Mine (Luyuangou). The focus on immediate gold production complements the development of Project Luogold in Luoning County. Asian Dragon continues to seek partnerships with existing gold producers to finance operations and share revenue from newly expanded gold production within the mine. Huatai operates a number of profitable Gold and Silver Mines in Luoning County of Henan Province, including their HPG Silver Mine, which recently joint ventured with Silvercorp Metals Inc., on a 40 / 60 basis.
The Luyuangou Gold Mine consists of a non-exploited, formerly state-owned (Luoyang Lushi Geological Resource Co. Ltd., a subsidiary to the Sixth Team of Nonferrous Geological and Mineral Resource Bureau) and now privatized gold mine with fully equipped mining infrastructure including rail facilities for main haulage and subordinate machinery for secondary haulage. The property is approximately 10.83 km2 with gold mining operations from 6 tunnels from the No. 1 and No. 2 veins. The daily total ore production is over 500 t/d which exceeds the capacity of their newly constructed 300 t/d concentration mill operation. The ore being mined averages over 15 g/t according to the information provided by Huatai. The economics have led to dump trucks from as far as away as 200 km to purchase these high-grade ore to haul back for process.
Mr. Christian Derosier, P.Geo, President of CDGC Inc., a world renowned geology and mining company and Asian Dragon's appointed independent qualified person, is finalizing detailed reports from his recent visit and review of the Luyuangou Gold Mine. His initial comments after the tour were that the Luyuangou Gold Mine is the best gold mine he has visited in China. The mine facilities are new and modernly equipped. He was excited to obtain several samples from the mining operation of the No.2 vein, of which one of the samples returned an assay value of 1,185 g/t grade, the highest assay result from a sample that he has taken in China.
About Asian Dragon
Asian Dragon was established to focus on China’s explosive precious metals reserves and markets and to become one of China’s largest foreign gold and precious metals producers through a series of joint ventures and mine and property acquisitions.
Long standing relationships with the Gold Bureau have provided Asian Dragon with the exclusive opportunity to commence due-diligence on several advanced Chinese Gold Mining Projects in one of the Country’s most well-known and prolific mineral production regions, the Xiaoqinling Region.
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.
