LUOYANG, CHINA, June 21 /CNW/ - Asian Dragon Group Inc., (OTCBB:AADG)
(FWB:P2J1) (WKN:A0KE7Z) is pleased to provide an update on activity at its
Jinjishan Gold Mine.
In the last three months nearly 1,000 meters of tunneling have been
completed. The 770M straight Tunnel at the Huashiya Zone and the 788M slope
Tunnel at the Luishugou Zone are scheduled to connect within the next 30 days
to form a long corridor intersecting several newly discovered gold veins. Many
of the veins are wider than 1m with grades ranging from 3g/t to over 30g/t. As
a result the estimated ore reserves from this zone alone total more than
150,000 tonnes with minimum grades of 5 to 8g/t. Asian Dragon plans to mine
these veins and commence full operation of the concentration mill running at
capacity at three shifts/day.
The two hole drill program at the Zhuyuanmao Zone has also been completed
and workers have intercepted five veins at this location. The first drill hole
has been completed at a depth of 301m and the second drill hole at a depth of
310m. The two drill holes are 50m apart.
Asian Dragon has commenced work on a 150m sinking shaft at the Jindonggou
Zone. At this location Asian Dragon plans to connect three separate existing
tunnels with average ore grades of 15g/t. The existing veins in these tunnels
are narrower but Asian Dragon expects the veins to widen significantly as they
expose them further. The early estimates of the potential ore deposit in this
area indicate at least 500,000 tonnes of easily assessable ore with potential
average gold content of 10g/t plus.
Asian Dragon is also evaluating the Houyao Zone where high grade gold
veins exist near the surface. Asian Dragon plans to complete a geological
survey before deciding what action will be taken. This area is similar, though
larger, than the Jindongcou Zone and it is anticipated will add significant
ore reserves to the mine.
There are still several other large parcels of ground scheduled for
exploration work within Asian Dragon's 28.3km2 license. Asian Dragon's current
focus at the Jinjishan Gold Mine is on confirming existing ore reserves as
economically as possible, expanding its exploration activity and ensuring full
operation of its concentration mill.
Asian Dragon is currently conducting due diligence on its acquisition of
Fuding Mining Development Co., Ltd. (FMDC) as announced on May 2nd, 2007,
where Asian Dragon has agreed to invest US$10 million, plus price based stock
commitment, within 1 year, with an ability to increase its interest to 70% by
investing a further US$20 million for a total investment of US$30 million
within 3 years. FMDC has established partnerships with 3 other Chinese
Companies (the "Partner" or collectively "Partners"), in an arrangement that
will result in each Partner contributing up to a 70% interest in their best
advanced staged properties. These properties all have world class deposit
potential including Molybdenum, Vanadium, Lead and Silver, which are all
located within a 100km of each other in the prolific Xiaoqinling Region of
Asian Dragon has commissioned Mr. Christian Derosier, P.Geo, a world
renowned geologist and mining consultant, and independent qualified person to
visit and provide detailed reports for all of the properties under option by
FMDC. He will make his recommendations to Asian Dragon on which advanced stage
properties should be retained and focused on by the company.
Asian Dragon is focused on creating shareholder value by concentrating on
significant mineral projects, which will help fast track the company to become
a major producer and follow the path of billion dollar market-cap companies in
the same region: Silvercorp Metal Inc., Lingbao Gold and China Moly.
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