Adriana Resources Inc.

Adriana Resources Inc.

September 15, 2005 06:30 ET

Adriana Signs MOU for Otelnuk Lake Iron Deposit

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 15, 2005) - Adriana Resources Inc. (the "Company") - (TSX VENTURE:ADI) is pleased to announce it has entered into a Memorandum of Understanding (the "MOU") with Bedford Resource Partners Inc. ("Bedford") to earn a 100% interest in the Otelnuk Lake iron deposit located in northeastern Quebec. On signing the MOU, the Company paid $10,000 to Bedford, an arms length party, as a non-refundable deposit. The MOU provides that the parties will negotiate a definitive agreement subject to, inter alia, satisfactory due diligence by the Company and satisfactory review of a National Instrument 43-101 ("NI 43-101") compliant report. The definitive agreement is also subject to all applicable regulatory approvals.

Watts, Griffis and McOuat Limited ("WGM"), a Toronto-based international consulting geological and engineering firm, with considerable experience and expertise in the evaluation of iron deposits, has been engaged to carry out a site visit, gather and analyze independent samples and prepare an initial technical review of the property. This review, which will be prepared according to the guidelines of NI 43-101 will focus on evaluating the historic mineral resource estimates for the Otelnuk Lake iron deposits and the results of historic metallurgical studies, all of which were carried out in the 1970s by previous owners of the property. The main purpose of the review will be to determine and recommend to the Company, an appropriate work plan and budget, to include a significant amount of diamond drilling, which if completed as recommended will enable the preparation of an NI 43-101 compliant report or Mineral Resource estimate.

The property is located 170 km north of the town of Schefferville, which once served as a centre for the iron ore mining and processing operations of the Iron Ore Company of Canada. The terminus of the Quebec North Shore and Labrador Railroad, a common carrier, is located in Schefferville. The property, consisting of 139 mining claims totalling 6,702 hectares in area, can be easily reached by float or ski-equipped aircraft.

The Otelnuk Lake property was first explored in the early 1950s during the original Labrador Trough exploration boom. The first mention of significant magnetite (+specular hematite) iron formation deposits on the property was approximately 1954. The property was staked by King Resources Company in 1970. Subsequent diamond drilling, surface sampling and trenching resulted in the preparation of mineral resource estimates for the North Zone in 1972 and 1973. Limited drilling approximately 3 kilometers south of the North Zone resulted in the preparation of a mineral resource estimate for the South Zone in 1976. This historic work has shown that iron formation mineralization occurs over a strike length of approximately 25 kilometers. Portions of the deposits outcrop and they dip shallowly at 5 degrees. Within the boundaries of the reported tonnage, till and rock cover is no greater than 25 meters vertical.

The historic diamond drilling and mineral resource estimates were limited to one particular iron formation unit. This unit is underlain by additional iron-formation units that may hold potential for more tonnage and this possibility will be investigated during the present WGM review.

The historic mineral resource estimates were prepared by King Resources Company and are documented below. The North Zone resource was classified as drill proven and the South Zone as drill indicated. These classifications were ones commonly used at the time.

Magnetic Fe Soluble Fe Iron Formation True
Zone Tonnes % % Thickness (m)
North 556,800,000 25.08 33.92 15
South 1,022,300,000 25.76 33.06 30

Lakefield Research (now SGS Lakefield) carried out limited metallurgical testwork on surface samples and drill core from the North Zone in 1971 and 1974 at its laboratory in southern Ontario. In addition, in 1976 a 19-tonne bulk sample was taken from the North Zone, of which 1 tonne was shipped to a German laboratory for metallurgical testwork. This work was carried out in 1977. While the results from the two laboratories cannot be directly correlated, both prepared concentrates grading 65.9% to 70.6% Soluble Fe with weight recoveries of 29.5% to 33.3%. These figures compare favourably with active iron ore operations in the southern portion of the Labrador Trough.

There has been no work reported on the property since 1976.

These historic "resource" estimates and test results were prepared prior to the implementation of NI 43-101. The Company and WGM have neither audited these estimates nor made any attempt to classify them according to NI 43-101 standards. They are presented because the Company and WGM consider them to be relevant and of historic significance. These estimates should not be relied upon for any assessment of the merit of the property.

Mr. John Sullivan, P.Geo, a Qualified Person under NI 43-101, has approved the technical content of this News Release.


Michael J. Beley, President

This release includes certain statements that may be deemed "forward-looking statements". All statements in this release that address future acquisitions, production reserve potentials or exploration drilling, are forward-looking statements. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of this release.

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