Adriana Resources Inc.

Adriana Resources Inc.

October 21, 2014 16:49 ET

Adriana Announces its Participation in Feasibility Study for New Labrador Trough Rail Link

TORONTO, ONTARIO--(Marketwired - Oct. 21, 2014) - Adriana Resources Inc. ("Adriana" or the "Company") (TSX VENTURE:ADI) announces today that Lac Otelnuk Mining Ltd. ("LOM") is joining Champion Iron Limited (TSX:CIA) and the Government of Québec in a partnership formed for the purpose of carrying out a feasibility study regarding a new multi-user rail link between the Port of Sept-Îles and the Labrador Trough.

LOM is a joint venture company that holds the Lac Otelnuk Property in Nunavik, Québec, of which Adriana owns 40% and WISCO International Resources Development & Investment Limited owns 60%.

The special purpose entity called La Société ferroviaire du Nord québécois, société en commandite ("SFNQ") is open to other mining companies to join. SFNQ is a partnership of government and industry established to manage the feasibility study.

On July 21, 2014, the Secrétariat au Plan Nord issued a request to mining companies with projects in the Labrador Trough interested in contributing to a feasibility study regarding the new rail link. The Government of Québec will make a financial contribution for the realization of the study of up to $20 million, as announced concurrently with the tabling of its 2014-2015 budget in June.

The study to be overseen by the SFNQ will evaluate the technical and economic requirements of a new multi-user common carrier to service the Labrador Trough. The objective is to focus on a phased construction approach that would satisfy the needs of all potential users.

Allen J. Palmiere, President & CEO of the Company, said "We are very pleased to join the Government of Québec and Champion Iron Limited in the new rail project study. It provides an opportunity for collaboration between industry, Government and all stakeholders. The potential new railway would stimulate the development of the north with the benefits accruing to the local and provincial stakeholders. Any such development will need the involvement and support of the Inuit, First nations and other stakeholders and I look forward to engaging with all of them to ensure that this process develops an optimal solution for social, financial and operational purposes".


Allen J. Palmiere, President and CEO

Certain information regarding the Company 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. As a consequence, 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.

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