Press release from Marketwire
Update on Corporate Position And Progress on Lac Otelnuk Project
Thursday, August 15, 2013
Update on Corporate Position And Progress on Lac Otelnuk Project10:51 EDT Thursday, August 15, 2013
TORONTO, ONTARIO--(Marketwired - Aug. 15, 2013) - Adriana Resources Inc. ("Adriana or the Company") (TSX VENTURE:ADI) is pleased to announce that it has filed its Unaudited Condensed Financial Statements for the quarter ended June 30, 2013. It is important to note that the Company had cash on hand of $45.8 million as at June 30, 2013. This represents $0.29 per issued and outstanding common share and provides the Company with the financial resources to meet all of its currently anticipated expenditures for the next two years as the Lac Otelnuk Project advances through feasibility and permitting. Adriana owns 40% of Lac Otelnuk Mining Ltd. ("LOM") which is a joint venture company with WISCO International Resources Development & Investment Limited ("WISCO") which in turn holds the Lac Otelnuk Property in Nunavik, Québec.
LOM continues to advance the project. Over the first several months of this year, LOM engaged SNC-Lavalin to perform various trade-off studies and to determine the scope of the additional metallurgical, geotechnical, geohydrology and environmental test work necessary to complete the feasibility study. Field work began with the reopening of the exploration camp in May with hydrogeological and geotechnical drilling commencing in early July. Hydrogeological drilling is now complete and geotechnical drilling continues. Field work concentrated in the areas of the mine, tailing management facility, the processing plant, airstrip and the permanent camp as well as to find potential borrow sources for construction. Drilling and blasting is underway to extract an 80 tonne bulk sample for pilot plant testing. This sample is expected to be shipped from site by mid-September. Once the test results are obtained, LOM will be in a position to finalize the flow sheet and begin the other feasibility design work.
Dr. Xiaogang Hu, Ph.D., P. Eng., our Project Director and General Manager joined LOM in May 2013. Dr. Hu is a senior cold region engineering and construction specialist. He has been involved in extensive design and construction phases on mining projects in the Northern Region. As the project director, he also directed the feasibility study and permitting for another large iron ore project in the Arctic region prior to join LOM. Dr. Hu has established a Montreal office and is heading up the technical team consisting of Martin Perusse, Director, Environment & Sustainability, Remi LaPointe, Director, Process Engineering, Maria DiNiro, Director, Project Control, and Sam Huang, Director, Metallurgy. This technical team will manage the feasibility and permitting process for the Lac Otelnuk project.
The Company is currently reviewing its 60% owned Port Project in Brazil. The Company has been working towards an environmental permit. In June 2013, the legislation and regulations dealing with marine ports changed. Our Brazilian Team has been working on revising the applications necessary to obtain a permit through the new regulatory process. Although, we believe the Port Project has value, due to the recent downturn in the iron ore sector and the potential availability of excess port capacity, the Company has decided to commission a study to determine the port projects viability. The study will determine the alternatives available to the Company and will take approximately two months to complete.
ON BEHALF OF ADRIANA RESOURCES INC.
Allen J. Palmiere, President and CEO
Certain information regarding Adriana and LOM, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties. Certain important risk factors could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements including, without limitation, changes in the world wide price of mineral commodities and currency fluctuations, general market conditions, the uncertainty of future profitability and access to sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and caution should be exercised on placing undue reliance on forward looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.
FOR FURTHER INFORMATION PLEASE CONTACT:
Adriana Resources Inc.
President & CEO
Adriana Resources Inc.
Connie Dos Santos
Director, Investor Relations