Asian Dragon Group Finalizes Negotiations For Major China Vanadium Project, Lushi Jiashapa Vanadium Mine With World Class Deposit Potential

    LUOYANG, CHINA, August 1 /CNW/ - Asian Dragon Group Inc., (OTCBB: AADG)
(FWB:P2J1) (WKN: A0KE7Z) is excited to announce its newly negotiated majority
owned China Base Metal Development Company, Fuding Mining Development Limited
has entered an acquisition Agreement for a 70% interest in Lushi Jiashapa
(JSP) Vanadium Mine, located in area of Wenguxiang to Dashihe of Lushi County,
Henan Province, China. The region exhibits prolific surface Coal containing
Vanadium mineralization discovered only in 2005. Local village residents have
been selectively mining rich pockets of coal in the area, as fuel for

    Asian Dragon will earn 51% of the newly formed Fuding by investing an
initial US$10 million within 1 year and increasing to 70% by a further
investment of US$20 million for a total of US$30 million within the next 3
years. This assertive move to base metals further displays Asian Dragon's
focus on increasing shareholder value.

    The JSP Vanadium Property contains a current Exploration License
comprised of 8.3 km2 with an approximate 1km wide by 8 km long covered
east-west trend ore body which extends over a 42 km area that sometimes widens
up to 3 km wide. The overburden is mostly thin and bare on the surface which
makes the project suitable for large-scale opencast mining with 3 exposed
veins on the surface, each of which are 60m and 150m or wider and only a few
hundred meters apart, indicating the potential of a consolidated ore body
below surface. Current Chinese reports estimate the size of the Vanadium ore
body deposit within the JSP Property above surface level at over 50,000 tonnes
of Vanadium, while preliminary work projects confirm the whole ore body
contains in excess of 2 million tones of Vanadium.

    About Vanadium: Used in metal alloys, and important in the production of
aerospace titanium alloys, as a catalyst for production of maleic anhydride
and sulfuric acid, in dyes and mordants, as target material for X-rays. Russia
and South Africa are the world's largest producers of Vanadium. Large reserves
are also found in the U.S., Canada, and China. The management of Asian Dragon
believes Vanadium is "the next" important strategic metal to be used in many
new and improved products. The Chinese Government has already mandated small
amounts of Vanadium to be added to every screw produced in China by 2010.

    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: Max
Sioson, 604-338-6281

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890