Adriana Resources Inc.

TSX VENTURE : ADI


Adriana Resources Inc.

March 23, 2009 08:31 ET

Adriana Reports 4.29 Billion Tonnes of Indicated Mineral Resources and 1.97 Billion Tonnes of Inferred Mineral Resources at Lac Otelnuk Iron Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2009) - Adriana Resources Inc. ("Adriana" or the "Company") (TSX VENTURE:ADI)(WKN:A0F7EL) is pleased to report the recent completion of a National Instrument ("NI") 43-101 Mineral Resource estimate ("the estimate") using information from the 2007-2008 drill program on the South Zone of the Lac Otelnuk Iron Project, located in Nunavik, Quebec, Canada. The estimate was completed by Watts, Griffis and McOuat Limited ("WGM"), a geological and engineering consulting firm based in Toronto, Canada, and resulted in 4.29 billion tonnes of Indicated Mineral Resources and an additional 1.97 billion tonnes of Inferred Mineral Resources based on a Davis Tube Weight Recovery ("DTWR") cut-off grade of 18%. See table below:



Summary of Mineral Resource Estimate
(using a Davis Tube Weight Recovery ("DTWR") cut-off grade of 18%)

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Resource Tonnes
Classification (in billions) %Fe Head DTWR % % SiO2 %Fe DTC
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Indicated 4.29 29.08 27.26 3.53 68.00
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Inferred 1.97 29.24 26.55 3.51 68.12
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WGM modeled the upper five geological sub-units (2A, 2B, 2C, 3A and 3B) of the Lac Otelnuk iron formation for the Mineral Resource estimate. The estimate was done using an Inverse Distance to the power of one method with a block size of 10 m x 10 m x 5 m high. Indicated Mineral Resources are defined as blocks being within 350 m of a drillhole intercept. Inferred Mineral Resources are interpolated out to a nominal 1,000 m on the fringe and at depth, as the entire 600 m x 500 m grid was not completed and some drill holes did not penetrate the entire stratigraphy, however, the units show excellent continuity.

"Adriana is pleased to say that the South Zone of Lac Otelnuk can now be considered a world-class iron deposit, and the new resource estimate has exceeded our expectations, and is a significant milestone for the Company. The significance of this resource estimate will bring global attention to the project and also to Nunavik, Quebec, Canada as a major iron ore player. Similar mineralization was identified along strike to the northwest for approximately 15 kilometres in the North Zone, through drilling completed in the 1970s. The North Zone has yet to be drilled by Adriana, but shows the true potential of the Lac Otelnuk project, as the Company believes the North Zone lies within the same iron formation as the South Zone, and is the geological continuation of the Lac Otelnuk Deposit," commented Michael Beley, President of Adriana. "Of note, a single exploration hole drilled by Adriana in 2008, located 2,000 metres west of the baseline on Section 10 North, confirmed the significant western extension of the iron formation under a broad topographic high or ridge. This area was not previously explored, and the drill hole was lost before reaching the lower stratigraphic units."

Information provided by Magnus Erickson of Raw Materials Group, Stockholm, Sweden, a group which manages an extensive mining industry database, indicated that the mineral resource identified in the South Zone of the Lac Otelnuk project currently ranks it in the "Top 15" of all known "world-class" iron deposits.

About the Lac Otelnuk Iron Project

The Lac Otelnuk Iron Project lies within the Labrador Trough in Northern Quebec. The deposit is a Lake Superior-type (Mesabi Range) taconite iron formation. These types of deposits have been the principal source of iron ore mined in the world. The Lac Otelnuk iron formation has been identified over a strike length of approximately 25 kilometres through mapping and exploration drilling in the 1970s.

A total of 67 diamond drill holes totaling 7,446 metres were drilled by Adriana on a nine kilometre portion of the deposit referred to as the South Zone (including 27 holes totaling 2,191 metres drilled in 2007). The 2008 drill campaign completed grid drilling of the South Zone at a drill spacing of 600 m by 500 m.

The Lac Otelnuk iron formation strikes northwest to southeast. It subcrops at surface and dips gently (from 2 to 5 degrees) to the northeast, eventually plunging under sedimentary formations. The western extent is terminated by erosion. Due to the gentle north-easterly dip and westerly sloping terrain, much of the sedimentary rocks that overly the South Zone have been stripped away by erosion, exposing the Upper Iron Formation.

For further information on the Lac Otelnuk Iron Project please refer to Adriana's website at: http://www.adrianaresources.com/s/LacOtelnuk.asp. For lab and assay procedures, completed by SGS Minerals in Lakefield, Ontario, see news release dated February 12, 2009.

Due to the uncertainty of Inferred Mineral Resources it cannot be assumed that all, or any part of this resource will be upgraded to an Indicated or Measured Resource as a result of continued exploration. To justify upgrading of the Mineral Resource to a Mineral Reserve, demonstrated economic viability is required. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.

Mr. Michael W. Kociumbas, P.Geo., Vice-President of WGM, is responsible for the Mineral Resource estimate. Mr. Kociumbas is an independent Qualified Person ("QP") in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects and has reviewed and is responsible for the Mineral Resources presented in this news release. WGM is currently preparing the NI 43-101 Technical Report on the property, which will be filed on SEDAR (www.sedar.com) within 45 days from the date of this press release. WGM has visited the site, collected independent core samples and reviewed all the QA/QC data received to date.

Mr. Frank Condon, P.Eng., a director of the Company and a QP as defined by NI 43-101, has reviewed and approved the technical disclosure contained in this news release.

About Adriana Resources Inc.

Adriana's goal is to become a fully integrated iron ore producer through continued development of its iron ore port facility in Brazil, through acquisition of iron ore mineral resources in Brazil, and the advancement of the Lac Otelnuk Iron Project in Quebec, Canada.

ON BEHALF OF ADRIANA RESOURCES INC.

Michael J. Beley, President

Certain information regarding the Company including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with mining exploration and development, volatility of prices, currency fluctuations, imprecision of resource estimates, environmental and permitting risks, access to labour and services, competition from other companies and ability to access sufficient capital. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.

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 release.

Contact Information

  • Adriana Resources Inc.
    Robert Ferguson
    (604) 629-0250 or Toll Free: 1-877-629-0150
    or
    Adriana Resources Inc.
    Ali Sinawi
    (604) 629-0250 or Toll Free: 1-877-629-0150
    (604) 629-0923 (FAX)
    Website: www.adrianaresources.com