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Adriana Resources reports 4.29 billion tonnes of indicated resource at Lac Otelnuk Iron Project

Published: 09:32 01 Apr 2009 EDT

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Markets may pay scant attention but Canadian Venture and Frankfurt listed Adriana Resources Inc. has reported 4.29 billion tonnes of Indicated Mineral Resources and an additional 1.97 billion tonnes of Inferred Mineral Resources following the recent completion of a National Instrument ("NI") 43-101 Mineral Resource estimate. The estimate was based on the information from the 2007-2008 drill programme on the South Zone of the Lac Otelnuk Iron Project, located in Nunavik, Quebec, Canada. The cut-off grade for the estimate was 18%.

According to Michael Beley, President of Adriana, the South Zone of Lac Otelnuk can now be considered a world-class iron deposit. Beley reckons that the estimate will bring will bring global attention to the project and also to Nunvaik, Quebec, Canada as a major iron ore player. Similar mineralization was identified along strike to the northwest for approximately 15 km in the North Zone, through drilling completed in the 1970s. The North Zone has yet to be drilled by Adriana, but shows the true potential of the Lac Otelnuk project, as the Company believes the North Zone lies within the same iron formation as the South Zone, and is the geological continuation of the Lac Otelnuk Deposit, commented  Beley.

We have been promoting iron ore companies over the last few months. As the global economy revives, demand for iron ore is expected to take off with companies such as Adriana bound to attract investor attention. The company has two other iron ore projects namely Bedford iron prospect, Labrador, Canada and Brazore Ltda, Iron Export Project, Brazil. Bedford iron prospect is still an exploration endeavour and Adriana plans to commence some geophysics work soon. The project is just 25km Northwest of Schefferville on the east side of Howells River where Millennium Capital Corp. (NML) has its iron ore project. Readers may recall our coverage of NML earlier.

Adriana’s Brazore project in Brazil adds a different dimension to the company. The company has an agreement with ArcelorMittal, the world's leading steel company, on the principal terms for the development of an iron ore port facility in the State of Rio de Janeiro, Brazil, to be constructed on lands acquired by Adriana in January 2008. ArcelorMittal will acquire 80% of the Port for total consideration of approximately US$40.5 million with Adriana holding the remaining 20%. In addition, ArcelorMittal has agreed to acquire up to 19.9% of the Adriana’s common shares which represents up to C$25 million and will also be granted a seat on Adriana's Board of Directors.

These recent developments make Adriana an interesting story and we will be following the company closely. Fundamentals remain strong for iron ore and companies such as Adriana with established resource estimates and strategic partnerships present a strong investment proposition.

About Adriana Resources Inc.
Adriana's goal is to become a fully integrated iron ore producer through continued development of its iron ore port facility in Brazil, through acquisition of iron ore mineral resources in Brazil, and the advancement of the Lac Otelnuk Iron Project in Quebec, Canada.

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