ADA Acadian Gold Scotia production could begin in Q1
This is great news, as I was expecting later Q2 2007 production. Tiny debt financing should be no problem, considering it's a small fraction of the annual cash flow -- they just have to choose the best terms from the competing lenders (kind of like Lending Tree commercials).
Acadian Gold Corp (TSX-V:ADA)
Shares Issued 104,808,584
Last Close 11/20/2006 $0.72
Tuesday November 21 2006 - News Release
Mr. G. Will Felderhof reports
ACADIAN GOLD PROVIDES UPDATE ON STATUS OF SCOTIA (ZINC-LEAD) MINE
Acadian Gold Corp. is on schedule with its Scotia mine project, and that zinc
and lead concentrate production could start as early as the first quarter of
2007, with shipments to commence in the second quarter of 2007. Two
milestones key to staying on target with respect to start-up include raising
debt capital in the order of $15-million for capital expenditures, working
capital and contingencies, and receipt of an industrial approval permit from
the Nova Scotia government.
The company is in discussions with a number of lending groups regarding the
required debt capital, and given the robust project economics and the current
prices for zinc and lead, this is expected to be in place prior to the
year-end or early 2007.
The industrial approval permit is the final permitting document required by
the company to commence operations. The required information to support the
issuance of this permit (consists primarily of certain updated environmental
background data contained in the environmental assessment study approved in
2000) should be filed with the Nova Scotia government by Nov. 24, 2006. It is
anticipated to have the industrial approval permit in hand early in the first
quarter of 2007.
Refurbishment of the mill has been under way for three months and currently
involves the services of 20 full-time employees of ScoZinc Ltd. plus outside
contractors. Excellent progress has been made to date with a new
35,000-square-foot roof installed, mill heating system commissioned and main
pump house completed. Mill electrics are expected to be completed in the
fourth quarter of 2006 and mill mechanical (crushing, grinding and flotation
circuits) in the first quarter of 2007.
Upon receipt of the industrial approval permit, mill commissioning is
scheduled to commence which will initially entail treatment of low-grade
material from the open pit. Initial sales of zinc and lead concentrates are
expected to take place in the late first quarter of 2007 or early second
quarter of 2007.
Advertisements for mine and mill personnel have been placed in several
publications, and it is anticipated that many of the positions will be filled
by residents of the local community. It is expected that at full production
the Scotia mine will employ approximately 80 people.
Management's opinion
Will Felderhof, president and chief executive officer, stated: "We are pleased
with progress to date and at this time remain confident that we can meet our
targeted start-up date of first quarter of 2007. This event will be a major
milestone for Acadian Gold and is expected to be a cornerstone for future
growth."
About Acadian Gold
Acadian Gold is a Halifax, Nova Scotia, Canada based resource company focused on exploring and developing gold and zinc properties in Atlantic Canada.
In addition to exploring and developing zinc properties in Nova Scotia through the Scotia Zinc Project, Acadian Gold is currently 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.
The principal focus in the Scotia Zinc project is the Scotia Mine which is slated to commence zinc and lead production in Q2-2007. At a planned rate of production of 700,000 tonnes per year from the open pit, the Scotia Mine is expected to produce 30,000 tonnes of high grade zinc concentrate and 10,000 tonnes of high grade lead concentrate per year. This is equivalent to 39.8 million pounds of zinc and 16.5 million pounds of lead annually. The projected (feasibility study) cost of production is US$0.34/pound zinc equivalent. Please see Press Release No. 16-06, July, 17, 2006 for further details.
Other
Technical information pertaining to the Scotia Mine Project was sourced from the "Resource Reserve and Feasibility Study" ("Study") announced on July 17, 2006. The principal author of the Study was Mr. Doug Roy, M.A.Sc. (Mining Engineering), P. Eng., who is an independent, third party mining engineer employed by MineTech International Limited of Halifax, Nova Scotia, Canada, and is a Qualified Person as defined by National Instrument 43-101. Mr. Roy is responsible for the preparation of the technical information reported in this news release pertaining to the Scotia Mine Project.
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 Acadian Gold's properties and activities, please visit our web site at www.acadiangold.ca. If you wish to be added to Acadian Gold's email or fax distribution list for future news releases and updates, please contact us at phone: 902-444-7779, fax: 902-444-3296. FOR FURTHER INFORMATION, PLEASE CONTACT:
G. Will Felderhof
President & CEO
or
Terry F. Coughlan
Vice President
902-444-7779
1-877-444-7774
mail@acadiangold.ca
Halifax, Nova Scotia |
