Vancouver — Sampling by Red Dragon Resources (DRA-V, RDDRF-O) on its Weixi lead-zinc project in Yunnan province, China continues to return high-grade zinc values.
Almost 400 surface samples were collected mostly from outcrop, artisanal workings and dumps in the main zone. An average grade of 9.06% zinc, 4.77% lead and 26.4 grams silver per tonne was returned from 61 samples of scree, dump material and outcrop. One outcrop grab sample from the northern end of the main zone returned 20.84% zinc, 27.55% zinc and 146 grams silver.
Earlier this year, two trenches excavated about 150 metres apart returned average grades of 10.22% zinc, 0.6% lead and 9.34 grams over 16 metres and 10.71% zinc, 1.16% lead and 2.33 grams silver over 24 metres in the southern end of the zones. Mineralization remains open at both ends of each trench.
The company’s exploration program has traced lead-zinc mineralization over three separate zones, with the main horizon extending over 5 km of strike and across widths of several metres to over 100 metres. Previous small-scale surface mining has exposed a number of mineralized showings.
Red Dragon plans an initial 10,000-metre drill program to begin in September, using two rigs.
Lead-zinc mineralization at Weixi is primarily hosted in limestone breccias and calcareous sandstones.
The project is situated about 130 km north of the Jinding lead-zinc deposit in Lanping Cty., one of China’s largest lead-zinc deposits with a total resource of 164 million tonnes grading 7.8% zinc and 1.6% lead. The Weixi lead-zinc project area and Lanping lead-zinc deposit both occur along the same tectonic-metallogenic zone, the Three River base metal belt, that extends from Tibet to Vietnam.
Red Dragon is earning a 60% interest in the joint venture from its Chinese partner Tibet Baoming Industry & Trade by spending US$2.3 million over two years. It can increase its interest to 90% by bringing the project to production.
With 63.5 million shares outstanding and a recent share price around $1.40, the company posts an $89-million market capitalization.
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