LUOYANG, CHINA, October 24 /CNW/ - Asian Dragon Group Inc. (OTCBB:AADG) (Frankfurt:P2J1) (WKN:A0KE7Z), a precious and base metals exploration, property acquisition and mining development company, is excited to announce that its partner "Fuding Mining Development Co., Ltd." ("FMDC") has provided the first of a series of significant updates on Asian Dragon's newly acquired interest in the Luoning Xiayu Fanggelewan (FGLW) Mine which will significantly increase the asset per share value of Asian Dragon stock. The FGLW Property is located adjacent to TSX-listed Silvercorp Minerals Inc.'s Ying Silver Project in Luoning County, Henan Province, China. This region exhibits prolific Silver-Lead mineralization that Silvercorp has compared to the mineral deposits and 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.
The infrastructure at the FGLW Property is exceptional and ready for full exploration and production as there are good roads, electricity, and water. The FGLW Property includes a current 1.75km2 Mining License covering a northeast-southwest trend with a series of long veins. There are currently 10 tunnels on the FGLW Property with 7 tunnels producing similar grades and minerals (including pockets of the galena type of deposits sold directly to smelters) to the nearby Silvercorp and TLP Mines. It is expected that once exploration and production commence on the FGLW Property, the market value of Asian Dragon will rival that of Silvercorp. There are several 100 t/d concentration mills operating nearby, ready to process ore from the FGLW Property.
Asian Dragon's partner, FMDC, has taken control of the property and begun clearing out any illegal mining activities within the license permit area and a Chinese Government certified Geological Team has been commissioned to begin preparing a full review of the property. The Geological Team has started mapping the tunnels and compiling the technical data into a report. This report will form the basis for the initial work program recommended by Asian Dragon's Independent Qualified Person, Mr. Christian Derosier, P. Geo, as well as the NI 43-101 compliant report also being prepared by Mr. Derosier.
Mr. Derosier visited and obtained grab samples from the FGLW Property which were sampled and assayed at the CMA-Luoyang laboratory. Initial results from these samples are as follows:
Au Ag Cu Pb Zn
g/T g/T % % %
0.38 1300.00 0.040 0.620 0.13
0.30 1665.00 0.200 13.820 0.18
0.12 108.00 0.470 14.310 0.45
0.13 90.1 0.022 1.06 0.27
0.06 90.2 0.084 10.5 0.21
0.23 322.0 0.029 17.7 0.31
0.13 44.9
0.35 41.6 0.110 6.11 1.22
Chairman Mr. John Karlsson commented, "Asian Dragon is eager and excited to start the work program to begin proving up this major deposit potential and move to production and revenue. We are encouraged by the samples we have obtained so far as they confirm our belief that FGLW contains world class deposits of Silver and Lead. We are confident this property will dramatically increase the value of the Company and provide great benefit to our shareholders."
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.