The Lac Otelnuk Iron Deposit is a Lake Superior type iron deposit or taconite- banded sedimentary rocks composed of magnetite and hematite within chert and jasper. The deposit is located on the western margin of the Labrador Trough in the Nunavik region of northern Quebec. In the early 1970s the property was held by King Resources who retained MPH Ltd. to conduct surface exploration and drilling. From 1970 to 1976 thirty-three widely spaced diamond drill holes were completed over a strike length of 22 km, primarily to test the upper most of three iron formation units.
In 2005 the property was optioned by Adriana Resources , and in 2007 and 2008, Adriana drilled 67 diamond drill holes totaling 7,446 meters to test all three iron formation units over a 9 km by 2.5 km portion of the deposit referred to as the South Zone. Drilling at a spacing of 600m by 500m has delineated a flat to gently dipping iron deposit, approximately 100 meters thick, containing inferred and indicated resources of 6.3 billion tonnes containing on average 29% Fe and a Davis Tube Weight Recovery of 27% that will produce a magnetite concentrate containing 68% Fe. The resource is compliant with National Instrument 43-101 Standards and Guidelines and CIMM Definitions. (Resources are being updated)
In addition to diamond drilling, Adriana has commissioned geometallurgical studies, bench scale metallurgical testing, environmental monitoring and a fully integrated Scoping Study for a mine, processing facility and infrastructure to produce and deliver 50 million tonnes of iron pellets per year to tide water.