Vancouver — Shares of Red Dragon Resources (DRA-V, RDDRF-O) plummeted on March 29th trading to close down 44% following poor initial drill results from its Weixi zinc project in Yunnan province, China.
With assays in for three of four initial drill holes, the company reports no significant results and only anomalous zinc values.
The four holes were testing the depth extension of the Baluo prospect-Main zone where a 2006 surface sampling program evaluated exposed mineralization over several hundred metres of strike and across 50 to 100 metres of width. A reported 61 samples, out of a total of 254 collected, averaged 9.1% zinc, 4.8% lead, and 26.4 grams silver per tonne.
The holes all encountered dolomitized limestone with strong hematite and silica alteration plus varying degrees of fracturing and solution collapse breccias. The company is reviewing the possibility it drilled into the footwall of the mineralized zone that may actually dip shallowly to the east rather than westward.
Two rigs are being moved to test Baluo in 2007 plus a third to drill the Dadihua prospect, located about 18 km north.
Weixi consists of five concessions covering about 196 sq. km of similar stratigraphy as the large Jinding-Lanping zinc deposit situated 130 km south. Jinding-Lanping is China’s largest zinc mine with annual output of about 100,000 tonnes (220 million lbs.) of the metal.
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