VANCOUVER, Jan. 25 /CNW/ - Red Dragon Resources Corp. (the "Company")
announces the completion of the 2007 Phase Two drill program (3,619m in 23
drill holes) on the Baoming Project in northern Yunnan Province, China. This
project is under joint venture with Tibet Baoming Industry Trade Ltd., a
Chinese private company. The project is partly contiguous with and south of
the Company's Shanchuan Project.
The drill program started on the 20th of September and ended the first
week of December 2007. The short reconnaissance drill holes were completed in
three areas along the Baluo prospect. The Baluo prospect is a coincident
lead-zinc anomaly in soils and rocks that has been the focus of small scale
mining. The anomaly trends north to northwest for over 5 kilometres across the
concession and is open to the south.
The drill holes intersected dolomitized limestone breccia, limestone and
lesser mudstone. No significant intervals of mineralization were intersected
in this program, however anomalous concentrations of zinc oxide (0.1 to 5%)
were associated with faulted dolomitized limestone breccia. A plan map and
table containing the collar location, azimuth, dip and length of the drill
holes is available on the Company's website (www.reddragonresources.com).
The high-grade grab and chip samples from surface oxide mineralization
that were previously reported were not intersected at depth and the Company
interprets these high-grade samples as erosional remnants of surface enriched
mineralization. Based on the results to date, future exploration will be
re-directed into other higher potential prospect areas.
The Shanchuan concession to the north, which comprises 85 square
kilometers will be drill tested in 2008. Several lead-zinc anomalies have been
identified by the geochemical sampling program completed in 2007. Sulphide
lead-zinc mineralization has been noted in addition to oxide and will be
targeted during the 2008 program.
In Canada, the Company has a large land position in the Athabasca Basin
totaling 1,600 square kilometers, which is currently under joint venture with
Areva Resources Canada. Under the terms of the agreement, Areva can earn a 50%
interest in the project by completing exploration expenditures totaling
U.S.$5.5 million, of which approximately $2.4 million has been spent to date.
Numerous targets have been identified by this work and will be followed up in
Red Dragon remains in strong financial condition with approximately
$15 million in the treasury (net of payables) or approximately $0.22 per share
and is currently evaluating several advanced stage projects for acquisition to
supplement their more grass-roots exploration projects in China and Canada.
"It is a noticeably different environment today than a year ago for
junior exploration underwritings," states Alvin Jackson, Red Dragon CEO. "The
Company's strong cash position represents a significant asset at this time."
Drill core samples were analyzed by International Plasma Labs Ltd. in
Kunming, China. Rock samples arriving at the laboratory in Kunming are sorted,
dried and crushed to -20 mesh. The sample is then reduced to a 250 gram charge
by repeated passes through a riffle splitter and then pulverized to 90%
passing -200 mesh. The sample is then rolled to assure a homogeneous particle
distribution and transferred to a bag for analysis. Total copper, lead and
zinc were analyzed by atomic absorption spectroscopy (AAS). Silver was
analyzed by fire assay with atomic absorption spectrometer (AAS) finish. Red
Dragon Resource Corp. has inserted quality control samples in addition to
quality control samples inserted by the laboratory.
Red Dragon Resources Corp. is a mineral exploration company actively
involved in base metal and uranium exploration in China and Canada.
On Behalf of the Board
Red Dragon Resources Corp.
Per: Alvin Jackson, Chairman and Chief Executive Officer
The technical information in this news release has been prepared in
accordance with Canadian regulatory requirements as set out in National
Instrument 43-101 and reviewed by Garnet Dawson, P.Geo., Vice President of
Exploration for Red Dragon Resources Corp.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of the
information contained herein. The statements made in this press release
may contain certain forward-looking statements that involve a number of
risks and uncertainties. Actual events or results may differ from the
For further information:
For further information: Red Dragon Resources Corp., Tel: (604)
602-8188; or Harbour Financial Inc., Brian N. Barbour, Tel: (403) 813-5832