LUOYANG, HENAN PROVINCE, CHINA, June 26 /CNW/ - Asian Dragon Group Inc.,
(OTCBB:AADG) (FWB:P2J1) (WKN:A0KE7Z) is excited to announce that its newly
negotiated and majority owned China Base Metal Development Company, "Fuding
Mining Development Co., Ltd." ("FMDC"), has entered into an Acquisition
Agreement for a 70% interest in Luanchuan Mozigou (MZG) Molybdenum Mine,
located in Jiaohe Village of Luanchuan County, Henan Province, China. The
region exhibits prolific molybdenum mineralization and is home to the Luoyang
Luanchuan Molybdenum Group Co., Ltd.'s ("China Molybdenum") Sandaozhuang Mine,
a 24-million-pound-per-year molybdenum mine only 6 km from the MZG Molybdenum
Mine. China Molybdenum is a single mine producer which recently completed its
IPO to raise over US$900 million on the Hong Kong Stock Exchange, with the
Sandaozhuang Mine being one of the largest pure molybdenum mines in the world
with 498,000 tonnes of reserves plus 506,000 tonnes of tungsten reserves.
Asian Dragon will initially earn 51% of FMDC by investing US$10 million,
plus stock to be agreed upon, within 1 year and may increase its interest to
70% by investing a further US$20 million for a total investment of US$30
million within 3 years.
The MZG Moly Mine contains a current Exploration License comprised of
14.09 km2 with a 4 km2 aspect of the property running the same
northwest-southeast trend as China Molybdenum, all aspects of this ore body
trend which extend over a 60 km "saddle" bordering Luanchuan and Lushi County.
The overburden is mostly thin and bare on the surface which makes the project
suitable for large-scale opencast mining with 2 exposed veins on surface each
of which are 50m or wider and only 200m apart indicating the potential of a
consolidated ore body below surface. Current Chinese reports estimate the size
of the molybdenum ore body within the MZG Property at over 180,000 m3 above
surface level while preliminary work projects confirm the property contains
molybdenum and other minerals at grades similar to China Molybdenum.
There is a local 2000 t/d iron mill that will cost approximately US$4
million to acquire, upgrade and transport to the Moly site. Roughly, each
tonne of the ore containing Moly has the same value as a 1/3 oz of gold, a
2000 tonne/day operation could therefore generate US$433,000 gross/day,
US$216,000 per day profit total.
About Molybdenum - Molybdenum is used primarily to harden various forms
of steel, making it more resistant to corrosion and improving its strength at
high temperatures. Steel mixed with molybdenum has a variety of applications
within the construction, shipbuilding, auto, defense and oil industries among
others. What makes it especially valuable, though, is the fact that it has few
substitutes and has an enormous market in Chinese industry.
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
Long standing relationships with the Gold Bureau 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.
For further information:
For further information: Asian Dragon Group Inc. Investor Relations:
Badshah Communications Group Ltd., 866-857-7522