Sales Of Concentrates From Cerros las Minitas Project

 

TORONTO, ON - Silver Dragon Resources Inc. reported that it has commenced toll milling operations from its Cerros las Minitas silver property in Durango, Mexico.

In June 2009, Silver Dragon signed a toll-milling agreement with Besmer S.A. de C.V. of Mexico to process up to 12,000 tonnes of ore over 12 months from Cerros las Minitas. During the first two months of toll-milling, 790 tons of ore were processed, yielding 28.382 tons of silver/lead concentrates and 15.618 tons of zinc concentrates. Based on current market prices, these concentrates are valued at approximately USD $73,000.

The toll-milling agreement and subsequent concentrate sales represent significant milestones in the process of transitioning Cerros las Minitas to production. Meanwhile, the Company continues to move through the process of obtaining an environmental permit for the property. When received, this permit will enable production to commence from the Company's own mill, which was acquired in October 2008.

"We are pleased with the commencement of our Mexican toll-milling operation, enabling Silver Dragon to graduate to the ranks of producing silver miners," commented Marc Hazout, President and CEO of Silver Dragon Resources. "Moreover, we look forward to obtaining the final environmental permit at Cerros las Minitas, which will enable production at our own mill."