Acadian Mining Corporation holds a large portfolio of gold properties totalling approximately 34,000 hectares in the Nova Scotia goldfields in Canada. Seven of these properties host historic gold mines. The Company is presently concentrating on developing its 4 advanced gold properties; Beaver Dam, Forest Hill, Tangier, and Goldenville, all of which are 100% owned. Each of these 4 properties hosts gold resources described in technical reports prepared by independent consultants in compliance with National Instrument 43-101 and are available on www.sedar.com. Current gold resources stand at 626,000 ounces (cut) in the measured and indicated categories and 909,000 ounces (cut) in the inferred category. (See Table below)
The principal focus in the Scotia Goldfields Project continues to be on the Beaver Dam property where the Company is targeting a potential bulk-tonnage-open pit gold deposit. July 16, 2007 the Company announced a revised resource estimate which increased both the measured and indicated, and the inferred resources by over 100%. Measured and indicated resources (cut, 0.3 g/t cut-off) are estimated at 446,000 ounces gold (9,080,000 tonnes grading 1.53 g/t gold) and inferred resources (cut, 0.3 g/t cut-off) at 504,000 ounces gold (10,400,000 tonnes grading 1.51 g/t gold).
Management is pleased with the progress being made on Beaver Dam and anticipates commencing a scoping study shortly. A positive study along with favourable results from a metallurgical test program expected to be completed soon, should support the commencement of a pre-feasibility study shortly thereafter.
Diamond drill results were released (May 10, 2007) for Acadian’s 100% owned Goldenville property. These results are considered favourable and warrant the continuation into a second phase drill program. Goldenville, along with Forest Hill and Tangier, are the Company’s principal, advanced underground gold properties all of which host National Instrument 43-101 compliant gold resources, which along with Beaver Dam, form integral parts of Acadian’s central processing strategy. With the exception of Forest Hill and Beaver Dam which are subject to small overriding royalties, all four of these gold properties are 100% owned by Acadian.
The future programs on these properties will initially be directed to Beaver Dam which is the potential site for a central processing mill and Tangier which is close by (approximately 40 kilometres) and accessible by ramp to 145 metres below surface.
Forest Hill, Goldenville and Tangier all boast considerably underground infrastructure including modern shafts and a ramp which will considerably shorten the length of time and significantly reduce the capital expenditure required to bring them into production (subject to positive feasibility studies).
Acadian Mining Corporation believes the central processing strategy is a key to successfully developing the gold properties in the Nova Scotia goldfields resulting in reduced capital and operating costs associated with building and operating one processing facility versus multiple plants.
The Company is particularly focused on identifying and exploring properties with potential for bulk tonnage – open pittable gold deposits. This focus is reflected in two recently optioned properties, Lake Catcha and Oldham. An initial drill program at Lake Catcha intersected 44 metres grading 0.46 g/t gold and 53 metres grading 0.61 g/t gold.
