TORONTO, ONTARIO -- (Marketwire) -- 06/19/12 -- Adriana Resources Inc. (TSX VENTURE: ADI) ("Adriana" or the "Company") is pleased to report the completion of an updated National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") Mineral Resource estimate ("the Estimate") using information from the most recent drilling program on its 40% owned Lac Otelnuk Project. The Estimate was completed by Watts, Griffis and McOuat Limited ("WGM"), Consulting Geologists and Engineers of Toronto, Canada, and resulted in 11.35 billion tonnes of Measured and Indicated Mineral Resources and an additional 12.39 billion tonnes of Inferred Mineral Resources based on a Davis Tube Weight Recovery ("DTWR") cutoff grade of 18%. The Measured and Indicated portion of the Mineral Resource extends over a strike length of 20 km. The Inferred portion of the deposit north and south of the Measured and Indicated Mineral Resource adds an additional strike length of 16 km to the deposit for a total strike length of 36 km. The update reflects an increase of 232% in Measured and Indicated and 794% in Inferred Mineral Resources from the previous estimate as noted in the Company's news release dated August 23, 2011.
The Total Iron (Head Fe analysis), DTWR and Satmagan results (Head magnetic Fe) are shown in the table below:
CATEGORIZED MINERAL RESOURCE ESTIMATE FOR
LAC OTELNUK PROJECT (CUTOFF OF 18% DTWR)
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Magnetic
Tonnes TFe Head DTWR Fe
Resource Classification (in billions) % % %
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Measured 5.51 29.2 26.8 18.4
Indicated 5.84 28.7 25.3 17.5
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Total M&I 11.35 28.9 26.0 17.9
Inferred 12.39 30.4 26.0 17.8
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For the 2011 drilling program, a changeover was made to Satmagan measurements to replace previous Davis Tube ("DT") testwork. For QA/QC purposes, some DT tests were still maintained and certain samples had both DT and Satmagan determinations. WGM built a relationship between the magnetic Fe determined by Satmagan and that determined by DT where both techniques were used. There was a strong correlation between the two types of measurements and WGM normalized the Satmagan results to the DT results using this relationship. For consistency with previous Mineral Resource estimates, a %DTWR cutoff was retained based on this relationship.
The Estimate was completed using an Inverse Distance to the power of one method with a block size of 50m x 50m x 5m high. In general, Measured Mineral Resources are defined as blocks being within 350 m of a drillhole intercept, Indicated Mineral Resources are defined as blocks from 350 m to 500 m from a drillhole intercept and Inferred Mineral Resources are defined as blocks more than 500 m distance from a drillhole intercept and interpolated out to a maximum of approximately 1,000 m where the drilling is more sparse, predominantly in the deeper parts of the deposit. This categorization was used specifically in the Main Zone (previously named the South Zone) area of the deposit.
Recent more widely spaced drilling was carried out to the north and south of the previous Mineral Resource area to trace the strike extensions of the deposit and some additional holes were also drilled to follow the mineralization at depth in the south part of the deposit. The areas directly to the north and the south of the Main Zone for about 3 km strike length were all classified as Indicated. Any Mineral Resources beyond the 3 km extension on either side of the Main Zone was classified as Inferred, due to even more widely spaced drilling. The deeper intersections of mineralization, predominantly on the northeastern down-dip extension of the deposit, generally lie beneath 70 m or more of cover rock and this mineralization was re-categorized as Inferred, regardless of the distance to a drillhole, to account for the uncertainty that would be associated with a higher stripping ratio.
The 2010 and 2011 drilling programs showed that the iron formation units have excellent continuity of geology/geometry and grade, although there appears to be some structural complexity to the northeast of the deposit where possible thrusting has occurred. This will be followed up in the next phases of drilling to get a better understanding of the nature of this complexity and how it affects the mineralization in this area. In general, the drilling programs were successful in upgrading the categorization of the existing Mineral Resources and substantially expanding the Mineral Resources to the north and south of the Main Zone.
Mr. Michael W. Kociumbas, P.Geo., Vice-President of WGM, and Mr. Richard Risto, P.Geo., are independent Qualified Persons in accordance with NI 43-101. Mr. Kociumbas has reviewed and is responsible for the Mineral Resources presented in this news release. WGM has previously visited the site, collected independent core samples and reviewed the QA/QC data received to date. Mr. Risto has reviewed and approved the underlying sampling, analytical and test data used for the Estimate.
Diamond drilling on the Lac Otelnuk Project resumed on May 3, 2012 and by May 10 all four drill rigs were in full operation. Since May 3, 2012, forty eight holes totaling 5,333 metres have been completed. Drilling is currently focused on definition drilling to better define the limits of the potential early stage mine pit for mine planning purposes. Additional drilling for hydrogeology monitoring wells and further delineation drilling to upgrade inferred mineral resources are planned. Exploration drilling is also planned to test other magnetic targets on the Lac Otelnuk Project. Since 2007, Adriana and Lac Otelnuk Mining Ltd. have drilled 261 drill holes totaling 34,037 metres on the taconite iron deposit.
Grindability testing on large diameter core samples from the Main Zone has been completed by SGS Minerals, and bench scale testing using high pressure grinding rolls is planned. Golder Associates has again been retained to conduct environmental monitoring and complete the surveys necessary for the Economic and Social Impact Assessment.
ON BEHALF OF ADRIANA RESOURCES INC.
Allen J. Palmiere, President and CEO
Certain information regarding the Company, including the Company's plans to increase and upgrade mineral resources and management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties. Without limitation, statements relating to potential mineralization and resources, exploration results, mining and development, future plans and objectives of the Company and imprecision of mineral resources estimates, are forward-looking statements that involve various degrees of risk. 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, risks inherent in mineral exploration, development, construction and mining operations, delays in obtaining or failures to obtain required governmental, environmental or other project approvals, environmental risks, access to labour and services and competition from other companies. 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.
Contacts:
Adriana Resources Inc.
Connie Dos Santos
Director, Investor Relations
(416) 363-2200 ext. 223
Adriana Resources Inc.
Allen J. Palmiere
President and CEO
(416) 363-2200 ext. 222
www.adrianaresoruces.com
