LUOYANG, CHINA, October 22 /CNW/ - Asian Dragon Group Inc., (OTCBB:AADG) (FWB:P2J1) (WKN:A0KE7Z) a precious and base metals exploration, property acquisition and mining development company, is excited to announce that it has entered into an Agreement to acquire a 70% interest in the Xiaowagou ("XWG") Mine, a Silver-Lead Property, holding a current 2.13 km2 Exploration Permit, through its partner, Fuding Mining Development Limited, a China Base and Precious Metal Development Company. The XWG Property is located in the area of Xiayu and adjacent to the TSX listed Silvercorp Metals Inc.'s Ying Silver Project, within 3 km from their world class HPG Silver-Lead Mine and 6 km southwest of the SGX Silver-Lead Mine.
The Xiayu region of Luoning County in the Henan Province of China exhibits prolific Silver-Lead mineralization that is comparable to the mineral deposit types similar to the mesothermal veins of the Coeur d'Alene District in Idaho, U.S.A., where more than 1 billion ounces of silver have been mined in the past 120 years.
Director Daniel Hachey, who has been involved in numerous major corporate financings including Glamis Gold, Canico Resource, Research in Motion, JDS Fitel, Alliance Communications, commented on the latest acquisition, "We are thrilled to add the XWG Property to our assets in China. Combined with the recently acquired Fanggelewan Silver-Lead Mine (FGLW), we have significantly increased the potential for a major discovery of a world class Silver-Lead deposit. Asian Dragon continues to demonstrate their strong Chinese connections as it is the only public company, other than Silvercorp, to have acquired 2 prime prospect silver-lead properties in the Xiayu region. With the recent additions of the Silver-Lead properties to the Luanchuan Mozigou (MZG) Molybdenum Mine, Asian Dragon has dramatically enhanced its property portfolio. As Asian Dragon continues its momentum in conjunction with the increasing value of gold and silver on the worldwide market, key management and operational prospects are being reviewed to accelerate Asian Dragon's push to major mine discovery and resource production."
Asian Dragon's Independent Qualified Person Mr. Christian Derosier, P.Geo, recently visited the XWG Property where he had the opportunity to study five tunnels and several trenches. Some of these tunnels and trenches were sampled and assayed. He is pleased to report that the results from these samples range as follows:
0.16 - 30.1g/T Au 10.35 - 7658.50 g/T Ag 0.35% - 2.38% Cu 0.22% - 12.11% Pb 0.06% - 9.80% Zn
Mr. Derosier stated on the XWG Mine, "Because of the presence of the granitic intrusion, one can expect higher gold and copper values in the halo of metamorphism with a diminution of silver and base metals grades." Based on the previous Chinese Property Owner's preliminary work program, Mr. Derosier is very excited about the potential of the property.
About Asian Dragon
Asian Dragon was established to focus on China's explosive precious and base metals reserves and markets and to become one of China's largest foreign metals producers through a series of joint ventures and mine and property acquisitions.
Long standing relationships with the Gold Bureau and other Chinese Partners have provided Asian Dragon with the exclusive opportunity to commence due-diligence on several advanced Chinese 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.