ADA.v - Acadian Gold now in productionCan a mod please change the thread title?ACADIAN GOLD CORPORATION ANNOUNCES OPERATIONS COMMENCED AT SCOTIA ZINC-LEAD MINE
Halifax, NS May 07, 2007
FSC / Press Release
ACADIAN GOLD CORPORATION ANNOUNCES OPERATIONS COMMENCED AT SCOTIA ZINC-LEAD MINE
Halifax, Nova Scotia CANADA, May 07, 2007 /FSC/ - Acadian Gold Corporation (TSX - VX: ADA), ("Acadian Gold") announced today that the Scotia Mine (zinc-lead) at Gays River, Nova Scotia, Canada has commenced operations. The mill is in the commissioning phase during which the mechanical components of the mill, related primarily to the crushing, grinding and flotation circuits, will be tested and proven to ensure that the flow of ore and treatment of materials is optimized.
It is anticipated that the commissioning phase will be completed by late June to mid-July 2007 at which point the mill should be operating at the planned capacity of approximately 2,000 tonnes per day. During commissioning, daily throughput is expected to be in the range of 1,000 to 1,500 tonnes per day.
Progress is being made in the negotiation of concentrate sales agreements, the details of which will be announced when agreements are concluded. The market for zinc and lead concentrate is very strong as reflected in the current zinc and lead prices of approximately US$1.74 per pound and US$0.93 per pound, respectively. Marketing of Scotia Mine product will be further facilitated by the superior quality of the concentrates. The zinc grade is 60% with less than 1% iron and the lead grade is 75%.
If production targets are met in 2007 as expected, the Scotia Mine should produce approximately 23.4 million pounds of recoverable zinc metal and approximately 7.8 million pounds of recoverable lead metal. Targeted production for 2008 is approximately 44.6 million pounds of recoverable zinc metal and 19.1 million pounds of recoverable lead metal. The cash cost of production is projected to be approximately US$0.52 per pound zinc-equivalent in 2007 and approximately US$0.34 per pound zinc-equivalent in 2008.
Photographs of the Scotia Mine operation can be viewed on the Acadian Gold's website at www.acadiangold.ca
Will Felderhof, President and CEO stated, "The commencement of operations at Scotia Mine is a milestone event for Acadian Gold. We are pleased to be in a position to take full advantage of the current high prices of zinc and lead. We anticipate Scotia Mine to be the engine to drive the growth of Acadian Gold going forward. This is an exciting time for both our shareholders and the employees at Scotia Mine."
About Acadian Gold
Acadian Gold is a Halifax, Nova Scotia, Canada based resource company which has brought a zinc-lead mine, Scotia Mine, located at Gays River, Nova Scotia into operation. In addition to bringing a new mine on stream, Acadian Gold 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. This production is equivalent to 39.8 million pounds of zinc metal and 16.5 million pounds of lead metal annually. Please see Press Release No. 16-06, July 17, 2006 for further details.
Acadian Gold 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 is provided in Press Release No. 01-06, January 5, 2006, under the paragraph titled "About Acadian Gold". Acadian Gold is bringing a new approach to the development of Nova Scotia gold deposits by pursuing a multiple mine central processing, managing and servicing strategy.
Forward Looking Statement
Certain information regarding the Company 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 the Company 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. The Company cautions that actual performance will be affected by a number of factors, many of which are beyond the Company's control, and that future events and results may vary substantially from what the Company currently foresees. Discussion of the various factors that may affect future results is contained in the Company's 2005 Annual Report which is available at www.sedar.com
. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
For additional information on the Company's properties and activities, please visit our web site at www.acadiangold.ca
. If you wish to be added to the Company's e-mail or fax distribution list for future news releases and updates, please contact us at phone: 902 444-7779, fax: 902 444-3296, email: email@example.com
FOR FURTHER INFORMATION, PLEASE CONTACT:
G. William Felderhof, President & CEO
or Terry F. Coughlan, Vice President
(902) 444-7779 Toll Free: firstname.lastname@example.org
Halifax, Nova Scotia