Acadian Mining Gold Exploration - Drilling commences at Beaver Dam - Resource
update provided
Trading Symbol: ADA:TSX; C2Z-Frankfurt
Shares Outstanding: 324,958,360
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<p><location>HALIFAX</location>, <chron>Sept. 17</chron> /CNW/ - Acadian Mining Corporation (TSX: ADA) ("Acadian" or the "Company") is pleased to announce that a diamond drilling program has commenced at Beaver Dam with the goal of expanding the Main Zone along strike and at depth, and increasing the confidence level of the current resource through in-fill drilling with the ultimate objective of moving the project to the feasibility stage. The Beaver Dam Main Zone as presently defined has a strike length of 725 meters and averages approximately 30 meters in width. Drilling to date has generally been to shallow depths to support a potential bulk tonnage - open pit development plan. However, limited deep drilling to date demonstrates the continuity of the gold zones to depth, and supports the potential for a gold deposit amenable to underground mining methods below the open pit target.</p>
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<p>The drill results of the final six holes of the last drill program reported on <chron>October 22, 2007</chron> yielded the following assay results below at depth. Intercept widths are approximately 85% of true widths.</p>
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Drill Holes From (m) Interval (m) Grade (uncut g/t)
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BD07-134 192.0 15.0 6.06
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including 201.0 6.0 ` 13.87
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including 201.0 2.0 33.28
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BD07-137 206.0 4.0 10.54
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Including 206.0 1.0 36.30
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BD07-139 240.0 5.0 3.47
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Including 244.0 1.0 10.20
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<p>Historic drill holes BD86-53C and BD86-53B intercepted 18.77 g/t gold over 2.30 meters at an approximate vertical depth of 450 meters and 31.30 g/t gold over 1.22 meters at an approximate vertical depth of 650 meters respectively. Intercept widths are approximate true widths.</p>
<p>The current resource at Beaver Dam is comprised of cut indicated resources of 446,000 oz. gold (9.08 million tonnes grading 1.53 g/t gold) and cut inferred resources of 504,000 oz. gold (10.40 million tonnes grading 1.50 g/t gold). Details of the Beaver Dam resources are described in the "Technical Report on the Updated Mineral Resource Estimate", effective date <chron>July 16, 2007</chron> and filed on SEDAR <chron>September 17, 2007</chron>.</p>
<p>The Beaver Dam property is one of five advanced gold projects, all of which host National Instrument 43-101 compliant resources, that collectively host indicated resources of 626,000 oz. gold and inferred resources of 1,111,000 oz. gold. Details are provided in the table below which has been updated to reflect the increase in inferred resources by 100,000 oz. gold to 1,111,000 oz. through the acquisition of the remaining 50% interest in the Fifteen Mile Stream property reported in the news release of <chron>July 9, 2009</chron>.</p>
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Summary of Gold Resources
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Cut(xx)
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Lower
Property Cut-off Category Tonnes* Grade Ounces*
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Indicated 9,080,000 1.53 446,000
Beaver Dam 0.30 g/t --------------------------------------------------
Inferred 10,400,000 1.51 504,000
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Fifteen
Mile 0.7 g/t Inferred 3,800,000 1.66 202,000
Stream
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Indicated 225,000 14.91 108,000
Forest Hill 3.50 g/t/ -------------------------------------------------
1.20m Inferred 383,000 11.93 147,000
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Indicated 134,000 9.67 42,000
Tangier 3.50 g/t/ ------------------------------------------------
1.20m Inferred 271,000 12.08 105,000
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Indicated 63,000 14.72 30,000
Goldenville 3.50 g/t/ ------------------------------------------------
1.20m Inferred 385,000 12.38 153,000
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TOTAL - Indicated 626,000
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5 Properties Inferred 1,111,000
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Uncut
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Lower
Property Cut-off Category Tonnes* Grade Ounces*
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Indicated 9,090,000 2.01 589,000
Beaver Dam 0.30 g/t --------------------------------------------------
Inferred 10,370,000 2.16 720,000
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Fifteen
Mile 0.7 g/t Inferred 3,800,000 1.66 202,000
Stream
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Indicated 225,000 24.02 174,000
Forest Hill 3.50 g/t/ -------------------------------------------------
1.20m Inferred 383,000 12.42 153,000
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Indicated 134,000 9.67 42,000
Tangier 3.50 g/t/ ------------------------------------------------
1.20m Inferred 271,000 15.09 130,000
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Indicated 63,000 16.62 33,000
Goldenville 3.50 g/t/ ------------------------------------------------
1.20m Inferred 385,000 18.78 232,000
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TOTAL - Indicated 838,000
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5 Properties Inferred 1,437,000
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* Rounded
(xx) See "Technical Reports" below for reports filed on SEDAR by Acadian
Mining Corporation.
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<p>It is the Company's intention, subsequent to the current drill program and subject to funding, to significantly ramp up its gold exploration efforts, concentrating on an aggressive drill campaign on its five 100% controlled advanced gold projects; Beaver Dam, Fifteen Mile Stream, Tangier, Goldenville and <person>Forest Hill</person>. The emphasis and objective will be to significantly increase current indicated and inferred gold resources.</p>
<p>A strong exploration focus is expected to be placed on the FMS Trend, a geological corridor and district scale feature which is believed to have high discovery potential for bulk tonnage style gold deposits. There are presently three known bulk tonnage gold deposits on the FMS Trend, two of which, Beaver Dam and Fifteen Mile Stream, are 100% controlled by Acadian. The Company controls approximately 33,000 hectares over a distance of approximately 100 kilometers on the FMS Trend.</p>
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Management's Opinion
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<p>Will Felderhof, President and CEO, stated, "We are very excited to resume exploration on our extensive gold holdings and are confident that our advanced projects and the discovery potential of the FMS Trend should enable us to achieve growth in resources with each successive drill campaign".</p>
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Other
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<p>Negotiations are continuing for surface access to the west and central portion of the Fifteen Mile Stream gold property, which is anticipated to result in further delays for drilling planned in this area.</p>
<p>Finalization of the metallurgical report on testwork conducted by SGS Lakefield Limited on a 1,403 kg sample from the Beaver Dam deposit is anticipated prior to <chron>September 30, 2009</chron>. The results of this testwork will be released upon receipt of the final report.</p>
<p>Terence F. Coughlan, P. Geo., is a qualified person as defined by National Instrument 43-101 and has reviewed the technical information reported in this news release for accuracy.</p>
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Technical Reports
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<p>"Technical Report on the Mineral Resource Estimate for the Tangier Property, <location>Halifax</location> County, Nova Scotia, <location>Canada</location>", dated <chron>September 29, 2004</chron>, and filed on SEDAR <chron>November 5, 2004</chron>.</p>
<p>"Technical Report on the Mineral Resource Estimate for the Goldenville Property, Guysborough County, Nova Scotia, <location>Canada</location>", dated <chron>March 1, 2005</chron> and filed on SEDAR <chron>March 3, 2005</chron>.</p>
<p>"Technical Report on the Updated Mineral Resource Estimate for the <person>Forest Hill</person> Property, Guysborough County, Nova Scotia, <location>Canada</location>", dated <chron>September 28, 2005</chron> and filed on SEDAR <chron>November 3, 2005</chron>.</p>
<p>"Technical Report on the Updated Mineral Resource Estimate for the Beaver Dam Property, <location>Halifax</location> County, Nova Scotia, <location>Canada</location>", dated <chron>September 14, 2007</chron> and filed on SEDAR <chron>September 17, 2007</chron>.</p>
<p>"Technical Report on the Resource Estimate on the Fifteen Mile Stream Property, <location>Halifax</location> County, Nova Scotia, <location>Canada</location>", dated <chron>May 27, 2008</chron> and filed on SEDAR <chron>July 4, 2008</chron>.</p>
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About Acadian
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<p>Acadian is a <location>Halifax</location>, Nova Scotia, <location>Canada</location> based mining company with five advanced gold projects, all of which host National Instrument 43-101 compliant resources. The Company also owns a zinc-lead mine (Scotia Mine) at Gays River, Nova Scotia, which is currently on care and maintenance. Acadian is actively exploring and developing its gold, zinc-lead, and barite properties in Atlantic <location>Canada</location>. Acadian holds a 29.18% interest in <person>Royal Roads</person> Corp. (RRO-TSX-V), which is actively exploring in Newfoundland and Labrador with a current focus on the historic Buchans Camp.</p>
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Forward Looking Statement
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<p>Certain information regarding Acadian contained herein may constitute forward-looking statements within the meaning of applicable securities laws. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Acadian believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Acadian cautions that actual performance will be affected by a number of factors, many of which are beyond Acadian's control, and that future events and results may vary substantially from what Acadian currently foresees. Discussion of the various factors that may affect future results is contained in Acadian's Annual Information Form dated <chron>March 31, 2009</chron>, which is available at <a href="http://www.sedar.com">www.sedar.com</a>. Acadian's forward-looking statements are expressly qualified in their entirety by this cautionary statement.</p>
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Additional Information
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For additional information on Acadian's properties and activities, please
visit our web site at www.acadianmining.com.
No regulatory authority has approved or disapproved the contents of this
release.
For further information: G. William Felderhof, President & CEO; Terry F. Coughlan, Vice President, (902) 444-7779, Toll Free: 877-444-7774, [email protected]
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