Asian Dragon Group Inc., Reports Strong Progress On China's Project Luogold
LUOYANG, China-(Business Wire)-January 11, 2007 - Asian Dragon Group Inc., (OTCBB:AADG) (FWB:P2J1) (WKN:A0KE7Z) is pleased to update the work program initiated on the Jinjishan Gold Property. The initial exploratory work programs have commenced and been completed on time and budget. The process of working with the Chinese partner has provided invaluable experience in the further expansion of the current and future work programs.
Huashiyan Zone
Adit work continues on the 770m Tunnel as previously updated on November 28, 2006 by Asian Dragon. The tunnel is 2m high by 2.2m wide and a total of 470m has now been completed. This includes the 280m direct drive that has crossed 3 veins as planned and encountered 2 other smaller narrow veins. The work now focuses on the vein crossing at 250m where the adit turns parallel to the vein going east for 60m and west for 130m. The width of this vein is measured from 0.6m to 1.3m. Chip samples have been taken from a number of locations along this vein for assay, results of which will be available shortly.
Zhuyuanmao Zone
A 2 hole drill program has been initiated to test for the extension of 5 veins exposed on the surface with an outcrop. These veins were recently discovered while conducting geological survey work which was not previously done for this zone. The first drill hole has been completed at a depth of 301m and the second drill hole is currently at a depth of 260m. The 2 drill holes are 50 metres apart and the second drill hole is located further from the outcrop at a lower elevation of 25 metres.
Liushugou Zone
Preparation work has begun for the 788m Tunnel. Workers are setting up winter camp and have started clearing the area in preparation for the planned drive of 500m. This tunnel is located at an elevation of 788m and starts at a 20 degree slope, before leveling off after 120m. The plan is to cross through 4 veins at depth to test for the extension where previous mining has taken place near the surface.
Quality Control
Samples of the drill core from the first drill hole have been separated, with a portion of the core being assayed locally by an independent lab under the supervision of the Luoyang Gold Bureau and portions of the remaining core sample have been selected for submission to the Chemex Laboratory in North Vancouver, Canada for further testing by Mr. Christian Derosier, P.Geo, President of CDGC Inc., a world renowned geology and mining consultant and Asian Dragon's recently appointed Independent Qualified Person on the project under NI 43-101.
Asian Dragon management has decided to initiate and implement a series of small work programs consisting of drilling and tunneling through out the 28.3 km(2) of the Jinjishan Gold Property. These work programs will not only provide valuable information on the property, but provide first hand experience working with the Chinese on gold mining in China. The collected data will form the basis of a major work program designed to best confirm the ore body as previously defined by the local Chinese Geological Exploration Team.
About Asian Dragon
Asian Dragon was established to focus on China's explosive precious metals reserves and markets and to become one of China's largest foreign gold and precious metals producers through a series of joint ventures and mine and property acquisitions.
Key relationships in China are enabling Asian Dragon to capture business opportunities as the Chinese Government continues to privatize many of their industries, enabling local and foreign investment to fill the void left by the Government ministries. Asian Dragon takes advantage of an identified niche opportunity in the Gold Mining Industry of China, where the Chinese Government has withdrawn the military from Gold Mining and set up the Gold Bureau to continue Gold Mining on an international scale.
Long standing relationships with the Gold Bureau have provided Asian Dragon with the exclusive opportunity to commence due-diligence on several advanced Chinese Gold Mining Projects in one of the Country's most well-known and prolific mineral production regions, the Xiaoqinling Region, where hundreds of small and dozens of medium to large mines are actively mining gold and various other precious metals and minerals. Earlier companies which acquired smaller advanced mining projects have since proven out positively and have succeeded in turning themselves into billion dollar market-cap opportunities. Two recent examples are Hong Kong listed Lingbao Gold Co. and Toronto Stock Exchange listed Silvercorp Metal Inc. both of which have major projects in 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.
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