ADA is up on this news 13:43 EDT Friday....
ACADIAN MINING SIGNS AGREEMENTS FOR THE SALE OF ZINC AND LEAD CONCENTRATES FROM ITS SCOTIA MINE
13:43 EDT Friday, October 12, 2007
FSC / Press Release
ACADIAN MINING SIGNS AGREEMENTS FOR THE SALE OF ZINC AND LEAD CONCENTRATES FROM ITS SCOTIA MINE
PENDING PROJECT UPDATES
Halifax, Nova Scotia CANADA, October 12, 2007 /FSC/ - Acadian Mining Corporation (ADA - TSX Venture), ("Acadian" or "Corporation") announced today that its wholly owned subsidiary, ScoZinc Limited, has signed Agreements with two buyers, MRI Trading AG ("MRI") and Trafigura AG ("Trafigura"), for the sale of 100% of the zinc and lead concentrate production from Acadian's Scotia Mine in Nova Scotia. Both MRI and Trafigura are headquartered in Zug, Switzerland. The Agreements specify the commercial terms for the sale of Scotia Mine production from start-up to December 31, 2008, as contemplated by the Memoranda of Understanding announced on June 27, 2007 in News Release No. 21- 07. The contracts also include an opportunity to continue the arrangements for a further two years, to December 31, 2010, should the parties agree in late 2008 to principal terms governing production for this period.
No production has been sold forward at this time and, as a result, an investment in Acadian provides full leverage to zinc and lead prices. However, the Corporation will assess the possible merits of selling forward a portion of the production from time to time as market conditions warrant.
Stanley Neamonitis, special marketing consultant to Acadian Mining based out of New York, has stated, "The commercial terms in the Agreements for the sale of production from Scotia Mine are very favourable to Acadian Mining."
Will Felderhof, President and CEO stated, "We are pleased to have reached agreement on the sales terms of the Scotia Mine zinc and lead production with Trafigura and MRI. This is an opportune time to bring a zinc-lead mine into production given the current high prices for these metals. Our anticipated cash flow from Scotia Mine should result in strong growth of the Corporation going forward."
Scotia Mine produces a high grade (60%) zinc concentrate low in iron (less than 1%) and other contaminants and a high grade (75%) lead concentrate. Commissioning of the mine commenced on May 7, 2007 and is currently operating at a mill throughput rate of 2,000 tonnes per day processing mid-grade ore. The mine shipped 800 tonnes of lead concentrates in September, 2007 and the Corporation anticipates shipping a further 1,000 tonnes in early November, 2007. A shipment of 5,000 tonnes of zinc concentrate is also scheduled for early November, 2007. Current zinc concentrates stockpiled at the Scotia Mine and the Corporation's warehouse facility in Sheet Harbour total 4,430 tonnes.
Pending News - Zinc-Lead Projects
Final Assay results from a 25 hole reverse circulation drilling program on the Carrols Corner Prospect located approximately 3 km west of the Scotia Mine mill are expected shortly.
Initial diamond drill results from a drilling program underway on the Getty Deposit located approximately 700 metres west of the Scotia Mine main deposit are expected shortly. A total of 45 drill holes of a 100 hole program have been completed. A second diamond drill was brought on site early in the week which will speed up the drill program.
An inferred resource estimate compliant with National Instrument 43-101 is expected to be completed on the Getty Deposit before the end of October, 2007.
Pending News - Gold Projects
Diamond drill results from a six hole program designed to test the continuity of higher grade gold mineralized trends below 200 metres at the Beaver Dam property are expected shortly. Results of a first phase scoping study on the open pit potential of Beaver Dam is expected in late November, 2007. A metallurgical test program on Beaver Dam gold mineralized material is expected to be completed by the year end.
About the Corporation
The Corporation is a Halifax, Nova Scotia, Canada based resource company which has recently brought the Scotia Mine into operation, a zinc-lead mine located at Gays River, Nova Scotia into operation. In addition to bringing the new mine on stream, the Corporation is focused on exploring and developing gold, zinc and barite properties in Atlantic Canada.
The Scotia Mine will operate initially as an open pit mine and is expected to produce 30,000 tonnes of high grade zinc concentrate and 10,000 tonnes of high grade lead concentrate per year. Please see News Release No. 16-06, July 17, 2006 for further details.
The Corporation is also focused on developing four advanced gold properties, Beaver Dam, Tangier, Forest Hill and Goldenville, which form the core holdings of the Scotia Goldfields project. All of the four advanced properties host gold resources described in technical reports prepared in compliance with National Instrument 43-101 and are available on www.sedar.com. A summary of gold resources for Goldenville, Forest Hill and Tangier is provided in News Release No. 01-06, January 5, 2006, under the paragraph titled "About Acadian Gold". A summary of gold resources for Beaver Dam is provided in News Release No 23-07, July 16, 2007. The Corporation is bringing a new approach to the development of Nova Scotia gold deposits by pursuing a multiple mine, central processing, managing and servicing strategy.
The Corporation holds a 44.42% equity interest in Royal Roads Corp. ("Royal Roads") (RRO-TSX-V). Royal Roads' principal asset is a 16,075 hectare (approximately 32 km x 5 km) mineral property known as the Tulks North property which is strategically located in the centre of the world-class Buchans base metal camp in central Newfoundland, Canada. In addition, Royal Roads holds a 34.05% equity interest in Buchans River Ltd. ("Buchans River") (BUV-TSX-V), which also holds a highly prospective property portfolio in the Buchans camp. Acadian's indirect interest in Buchans River is 15.13%.
Royal Roads' Tulks North property is host to the Daniels Pond deposit which was discovered by BP Resources Canada Ltd. in 1989. Royal Roads reported (see News Release issued November 7, 2006) an inferred resource (Zn cutoff = 2%, S.G. 4.0) of 1.69 million tonnes grading 0.57% copper, 4.40% lead, 8.37% zinc, 196.9 g/t silver and 0.68 g/t gold over an average width of 4.2 metres.
