NEWS =CRAPAcadian Mining scales back zinc-lead operationsHALIFAX, Dec. 10, 2008 (Canada NewsWire via COMTEX News Network) --
Trading Symbol: ADA:TSX; C2Z-Frankfurt
Shares Outstanding: 153,402,907
AcadianMining Corporation (TSX: ADA) ("Acadian" or the "Company") announcedtoday that it is scaling back its operations at its Scotia Mine(zinc-lead) in the face of continued deterioration of metal prices.Operations staff has been further reduced by 38 bringing the total minestaff down to 70. A revised mine plan is being implemented which willfocus on mining currently developed run of mine grade ore and lowergrade (approximately 2% zinc) material at surface with a zero stripratio. Waste stripping will be deferred until economic conditions havesufficiently improved. These additional operational measures werenecessary due to the rapid decline in metal prices over the past twomonths. On October 1, 2008, zinc and lead prices were US$0.75 per poundand US$0.82 per pound respectively. On December 1, 2008, the prices forzinc had declined 33% to US$0.50 and lead 49% to US$0.42 per pound. OnJanuary 1, 2008, zinc and lead prices were US$1.08 per pound andUS$1.23 per pound respectively.
The revised mine plan isanticipated to supply sufficient ore to the mill until the end ofQ1-09. Zinc-lead operations beyond this date will be contingent upon asignificant rebound in metal prices.
The Company is currentlyevaluating the merits of modifying the mill to treat gold bearingmaterial sourced from a planned open pit gold deposit, the 'Touquoydeposit', located approximately 45 km east of Scotia Mine. The Touquoydeposit which is owned by ASX listed Atlantic Gold NL ("Atlantic"),subject to a 40% carried interest by privately owned Moose RiverResources Ltd., has received environmental approval, and subject tofinancing and certain additional regulatory approvals could potentiallybe brought into production in Q2-09 or Q3-09. The proposals beingdiscussed with Atlantic, the Touquoy project operator, envisagestrucking and treating 3,000 tpd (1,000,000 tpy), in the Scotia Mill.
Inthe event the proposed plan to treat material from the Touquoy depositdoes not come to fruition, the Scotia Mill is expected to be put oncare and maintenance pending more favourable zinc and lead prices.
TheCompany is currently exploring funding possibilities, includingdivesting of certain assets, to strengthen its balance sheet. Failureto raise additional capital will hinder the Company's ability toproceed with the proposed Touquoy gold initiative and will impact onthe Company's ability to continue operations.
About the Company
-----------------