Silver Dragon resources will start silver production at its Erbahuo silver mine in China in the second quarter of 2011.
The open-pit mine is expected to produce dore silver bars by the third quarter of 2011, which will be sold to smelters for further refining.
Huaguan Industrial and Guangxi Hongteng Mining have partnered to develop and operate the mine under a five-year arrangement.
The firms anticipate processing 100,000t of ore, yielding up to 8t of silver in the first year.
The Erbahuo mine is owned by Chifeng Silver Dragon Resources & Technologies, a joint venture between Silver Dragon Resources and HIC, a Chinese state-owned entity.