Adriana launches first-phase program at Lac Otelnuk

Vancouver – Adriana Resources (ADI-V) has launched a first-phase work program at the Lac Otelnuk iron property situated 170 km north of Schefferville, on Quebec’s North Shore near the border with Labrador.

The 289-sq-km property covers a 45-km-long strike length of iron formation, as defined by outcrops and government aeromagnetic survey data. Within the system are two significant magnetite iron-formation taconite deposits known to extend for at least 25 km on strike.

Both deposits were partially drilled by previous operators in the 1970s, resulting in the delineation of historic mineral resources that pre-date National Instrument 43-101 disclosure standards.

The smaller North zone hosts 623 million tonnes at 25.08% magnetic iron, or 33.92% soluble iron over an estimated average true thickness of 15 meters. The South Zone hosts 1.14 billion tonnes at 25.76% magnetic iron, or 33.06% soluble iron, over an estimated average true thickness of 30 metres. These historic estimates were provided for information purposes only, and are not to be relied upon for economic evaluation purposes.

The deposits are sub-horizontal, with the two most important combined iron-formation units estimated at about 15 to 38 metres thick, based on previous work programs. There are additional sub-units immediately beneath the sub-units hosting the historic resources that are considered to have potential for additional mineral resources.

Adriana’s initial work program is based on the recommendations of Watts, Griffis and McOuat, a Toronto-based consulting firm with extensive experience in the evaluate on of iron deposits.

The ongoing program will continue through the summer into the fall, and will entail the construction of a 40-person camp, line-cutting, sampling, mapping and an environmental baseline study in anticipation of a first-phase drill program planned for 2007.

Adriana can earn a 100% interest in the property by spending $4 million on exploration before the end of 2011, and issuing 2 million of its shares to the vendor by Nov. 30, 2007. The company must also pay a royalty of 2.5% on gross revenue from the sale of iron produced, with advance royalties kicking in on Nov. 30, 2006 in the amount of $150,000 annually, payable quarterly, though to the start of production.