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 extent 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.
Red Dragons four 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.
Winter conditions did not allow for repositioning of the rig to test on a different azimuth. Two rigs are being allocated to test Baluo in 2007 plus a third to drill the Dadihua prospect located about 18 km to the north.
Weixi consists of five concessions covering about 196 sq. km of similar stratigraphy as the large Jinding-Lanping zinc deposit situated about 130 km to the south. Jinding-Lanping is Chinas largest zinc mine with annual output of about 100,000 tonnes (220 million lbs.) of the metal.
Investors punished Red Dragon with its shares loosing 57 to close at 73 apiece on strong volume following the assays.
Be the first to comment on "Red Dragon’s Weixi drilling disappoints"