Silver Dragon (OTCBB: SDRG) Continues to Advance Operations in China
Baby Bulls
January 29, 2010
Silver Dragon Resources Inc. (OTCBB: SDRG) continues to advance its operations in China. Since receiving the prestigious Prospector/Explorer of the Year Award for its Dadi Silver Polymetallic Project at the 2009 China Mining Congress & Expo back in October, the Company (i) announced massive intercepts at Dadi of 915 g/t silver, 7.6% lead, and 9.1% zinc across more than 15 meters; (ii) raised $1 million; and (iii) sold 2 properties in China for gross proceeds of $4.2 million. Keep in mind that Dadi is one of six remaining Chinese properties for which Sino-Top holds the exploration and development rights and Sino-Top is 40% owned by Silver Dragon.
And by the way, all of those accomplishments don't include receipt of a business license for the exploration and development of copper, lead, zinc, silver, gold and associated metals, as well as the sale of such developed products, which the Company announced on January 28, 2010 and which is valid until the year 2023.
And as if that is not enough, take a look at the last several press releases, particularly at the comments from management. Unless we´re reading too much into it, and I don´t believe we are, the Company is close to completing its initial resource estimate with respect to one of its flagship properties, Dadi. It is impossible to guess the results of a resource estimate for Dadi, but anything in the 15 to 20 million silver equivalent ounce range would be terrific, 40% of which can be attributed to Silver Dragon.
Assuming it comes in at the high-end of that range, 20 million, 40% of which is 8 million, in combination with Company´s resource estimate in Mexico, which is approximately 25 million silver equivalent ounces, the Company would have a total of 33 million silver equivalent ounces. With 90 million shares out, at $0.30 per share, Silver Dragon has a market cap of around $27 million. Divide that by its silver equivalent ounces ($27 million / 33 million silver equivalent ounces), the result is that the Company would be trading for $0.82 per in ground silver equivalent ounce. That seems cheap compared to its peers and with silver above $16 per ounce.
For more information about Silver Dragon and other micro and small cap companies, please visit our blog site at http://babybulltwits.wordpress.com.
And by the way, all of those accomplishments don't include receipt of a business license for the exploration and development of copper, lead, zinc, silver, gold and associated metals, as well as the sale of such developed products, which the Company announced on January 28, 2010 and which is valid until the year 2023.
And as if that is not enough, take a look at the last several press releases, particularly at the comments from management. Unless we´re reading too much into it, and I don´t believe we are, the Company is close to completing its initial resource estimate with respect to one of its flagship properties, Dadi. It is impossible to guess the results of a resource estimate for Dadi, but anything in the 15 to 20 million silver equivalent ounce range would be terrific, 40% of which can be attributed to Silver Dragon.
Assuming it comes in at the high-end of that range, 20 million, 40% of which is 8 million, in combination with Company´s resource estimate in Mexico, which is approximately 25 million silver equivalent ounces, the Company would have a total of 33 million silver equivalent ounces. With 90 million shares out, at $0.30 per share, Silver Dragon has a market cap of around $27 million. Divide that by its silver equivalent ounces ($27 million / 33 million silver equivalent ounces), the result is that the Company would be trading for $0.82 per in ground silver equivalent ounce. That seems cheap compared to its peers and with silver above $16 per ounce.
For more information about Silver Dragon and other micro and small cap companies, please visit our blog site at http://babybulltwits.wordpress.com.
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