TORONTO – Adriana Resources Inc. is pleased to announce that it has completed a Feasibility Study (“FS”) on the Lac Otelnuk Iron Ore Project (“LOM Project”) located in Nunavik, Québec. Lac Otelnuk Mining Ltd. (“LOM”) is a joint venture company between Adriana and WISCO International Resources Development & Investment Limited (“WISCO”), of which Adriana owns 40% and WISCO owns 60%.
A Feasibility Study (“FS”) with AACE Class 3 estimates (targeted accuracy +/- 15%) for the LOM Project designed for a 50 million tonnes per year (Mtpy) operation considering a 30 year mine life has been completed by SNC Lavalin Inc. The results of the study have concluded that, with 50 Mtpy of high quality product developed in two phases, the LOM Project is technically feasible with positive financial results, based on the selected process technologies, product transportation method, power supply concept, water and tailings management system, the long term iron ore price forecasts developed by SNL Metals and Mining and the applicable tax regimes. LOM has engaged Met-Chem Canada Inc., (“Met- Chem”) Montreal, Quebec, to compile a Technical Report in accordance with National Instrument 43-101 (“NI 43-101”), and it will be filed on SEDAR within 45 days after this news release.
Allen J. Palmiere, the CEO of Adriana said: “We are very pleased to announce the completion of the Feasibility Study for the Lac Otelnuk Project. The results of the study show that the LOM Project has robust and attractive economics under different scenarios. The Feasibility Study provides to our partner, WISCO, the basis for further strategic evaluations and financing arrangements. We are very proud of our team and the work that has been done to complete the Feasibility Study.”
Full details of the study can be found at www.adrianaresources.com