Acadian Mining Corporation year end results - Revenue from Scotia Mine operations commences



    Trading Symbol: ADA:TSX; C2Z-Frankfurt
    Shares Outstanding: 142,287,907

    HALIFAX, March 31 /CNW/ - Acadian Mining Corporation (TSX: ADA)
("Acadian" or the "Company") announced its audited financial results for the
year ended December 31, 2007 and information on its Scotia Mine operations,
highlights of which are presented in Tables 1 & 2 below. Complete financial
statements accompanied by "Management's Discussion and Analysis of Results"
and "Shareholder's Letter" are available on the regulatory filing site,
www.sedar.com and the Company's website, www.acadianmining.com. Additional
information is presented in the Company's review of activities for 2007, which
was provided in a news release on January 16, 2008.
    The Company realized revenues of $9,734,047 from zinc and lead
concentrate sales for the period ($8,275,301 in the fourth quarter). This
sales revenue is the Company's first revenue as it moves from an exploration
company to a producer of zinc and lead.
    A net loss of $5,371,741 ($0.05 per common share) for the period reflects
to a large degree on the higher cost per unit of zinc and lead production
associated with mine start up and commissioning of the mill. These higher than
normal unit costs have decreased substantially in the early part of Q1-08.
January and February, 2008 operating results show profits from operations of
$401,696 and $1,402,040 respectively, and further improvements are anticipated
in Q2-08.
    Cash cost per pound of payable metal (zinc and lead) sold for the period
was $0.68, which exceeded the internally forecasted high of $0.62 for the mine
start-up period by $0.06. This cost has subsequently decreased to $0.49 per
pound of metal (zinc and lead) sold during the period January and February,
2008.
    Table 1 - Financial Highlights

    
    -------------------------------------------------------------------------
                         Quarter ended December 31    Year ended December 31
    -------------------------------------------------------------------------
                                 2007         2006         2007         2006
    ------------------------------------------------------------------------
                                    $            $            $            $
    -------------------------------------------------------------------------
    Revenue                 8,173,118                 9,734,047
    -------------------------------------------------------------------------
    Operating loss          3,207,731      753,770    6,589,406    1,847,259
    -------------------------------------------------------------------------
    Net loss                3,170,360      226,588    5,371,741      797,374
    -------------------------------------------------------------------------
    Loss per share                .03          .01         0.05         0.01
    -------------------------------------------------------------------------
    Cash and equivalents    3,022,868    3,641,345    3,022,868    3,641,345
    -------------------------------------------------------------------------
    Working capital         6,885,320    5,568,294    6,885,320    5,568,294
    -------------------------------------------------------------------------
    Total assets           63,043,436   39,158,604   63,043,436   39,158,604
    -------------------------------------------------------------------------

    The Company raised $27,795,151 in capital during the year on the issue of
new shares and the exercise of warrants. These funds were principally invested
in capital assets of $17,330,681 and in mineral properties of $4,095,762, and
to working capital requirements of $5,889,568.

    Operational highlights for the period ended December 31, 2007 are
presented in Table 2 below.


    Table 2 - Operational Highlights - Year ended December 31, 2007

    -------------------------------------------------------------------------
    Production
    ----------
    -------------------------------------------------------------------------
    Tonnes milled                     Total                       336,534
    -------------------------------------------------------------------------
    Tonnes milled                     2007 sales                  280,202
    -------------------------------------------------------------------------
    Head Grade - zinc                 Percent                     2.13
    -------------------------------------------------------------------------
    Head Grade - lead                 Percent                     0.88
    -------------------------------------------------------------------------
    Recovery - zinc                   Percent                     73.11
    -------------------------------------------------------------------------
    Recovery - lead                   Percent                     76.41
    -------------------------------------------------------------------------
    Zinc concentrate                  Tonnes dry                  9,200
    -------------------------------------------------------------------------
    Zinc concentrate                  Grade %                     55.49
    -------------------------------------------------------------------------
    Zinc metal                        Tonnes                      5,105.3
    -------------------------------------------------------------------------
    Zinc metal                        Pounds                      11,255,307
    -------------------------------------------------------------------------
    Lead concentrate                  Tonnes dry                  3,579
    -------------------------------------------------------------------------
    Lead concentrate                  Grade %                     60.43
    -------------------------------------------------------------------------
    Lead metal                        Tonnes                      2,163
    -------------------------------------------------------------------------
    Lead metal                        Pounds                      4,768,537
    -------------------------------------------------------------------------
    Metals Sold - Cost of Production
    --------------------------------
    -------------------------------------------------------------------------
    Zinc                              Tonnes                      4,910.7
    -------------------------------------------------------------------------
    Zinc                              Pounds                      10,826,085
    -------------------------------------------------------------------------
    Lead                              Tonnes                      1,140.0
    -------------------------------------------------------------------------
    Lead                              Pounds                      2,515,440
    -------------------------------------------------------------------------
    Zinc & Lead                       Total pounds                13,341,525
    -------------------------------------------------------------------------
    Cost of production sold                                       $9,068,838
    -------------------------------------------------------------------------
    Cost of production sold           Per pound zinc & lead       $0.68
    -------------------------------------------------------------------------
    Cost of production sold           Per tonne milled            $32.36
    -------------------------------------------------------------------------

    The Company's 2007 zinc and lead production was 23% and 18% respectively
below target, which was due to a combination of not reaching the planned mine
benches as per the pit schedule and operational disruptions typically
experienced in the start up of a new mine and milling facility. Not reaching
the planned mine benches as per the pit schedule resulted in lower head grades
to the mill. The average zinc head grade for the period was 2.13%, which was
13% below plan for the benches mined; however, the average lead head grade was
0.88% which was 33% above plan for the benches mined. Zinc and lead recoveries
in the mill were 73.11% and 76.41% respectively which was 9% and 5% below
plan, and is attributed to low head grade (in the case of zinc), circuit
control issues and operator inexperience. All of these issues which negatively
impacted production levels and mill recoveries have shown steady improvement
during Q4-07 and Q1-08.
    The figures reported for concentrate grades and recoveries are updated and
adjusted from those reported in the news release of January 16, 2008,
reflecting more complete mill data than was available in early January.
    Recent ore milled which graded 3.6% zinc and 1.6% lead yielded an 85.12%
recovery for zinc at a concentrate grade of 58% zinc, and an 89.92% recovery
for lead at a concentrate grade of 72% lead. It is anticipated that similar
recoveries should be attainable for the 2008 planned average head grades of
3.1% zinc and 1.3% lead. Mill throughput is currently averaging 2,300 tpd,
however recent escalations to 2,650 tpd indicate that the targeted 2,500 tpd
average may be achievable. This rate of throughput would be 25% higher than
indicated in the 2006 feasibility study.
    Production levels for the month of March, 2008 will be negatively impacted
due to an unanticipated interruption of operations in the open pit caused by
extreme volumes of run-off water overwhelming the polishing pond discharge
weir which necessitated shutting down of the pit pumps. This was due to a
series of heavy rainfall events compounded with spring thaw conditions.
Corrective measures were implemented to avoid future problems of this nature
and pit pumping has resumed. During this period, the mill ran continuously
with the exception of scheduled downtimes with mill feed sourced from
stockpiled ore which was of a lower grade than the current benches being
mined.
    At this time the Company anticipates achieving the targeted production of
30,000 tonnes of zinc concentrate and 12,000 tonnes of lead concentrate in
2008. This projected production equates to approximately 34.7 million pounds
of recovered zinc and 17.9 million pounds of recovered lead.

    Management Opinion
    ------------------

    Will Felderhof, President & CEO stated: "Despite various challenges that
surfaced during the start up of operations at Scotia Mine, we are pleased with
the present status of operations. The outlook for Acadian Mining is 2008 is
positive."

    About the Company
    -----------------

    Acadian is a Halifax, Nova Scotia, Canada based mining company which
operates a zinc-lead mine (Scotia Mine) at Gays River, Nova Scotia and is
exploring and developing gold, zinc-lead, and barite properties in Atlantic
Canada.
    The Scotia Mine operates as an open pit mine and is expected to produce
30,000 tonnes of high grade zinc concentrate and 12,000 tonnes of high grade
lead concentrate per year. See the Company's News Release No. 16-06, July 17,
2006 for further details.
    The Company 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. Each 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 for Goldenville, Forest Hill and Tangier is provided in News
Release No. 01-06, January 5, 2006, under the paragraph titled "About Acadian
Gold". A summary of gold resources for Beaver Dam is provided in News Release
No. 23-07, July 16, 2007. The Company 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 Company holds a 44.42% equity interest in Royal Roads Corp. ("Royal
Roads") (RRO-TSX-V). Royal Roads' principal asset is a 16,075 hectare
(approximately 32 km x 5 km) mineral property known as the Tulks North
property which is strategically located in the centre of the world-class
Buchans base metal camp in central Newfoundland, Canada.
    In addition, Royal Roads holds a 26.4% equity interest in Buchans River
Ltd. ("Buchans River") (BUV-TSX-V), which also holds a highly prospective
property portfolio in the Buchans camp. Acadian's indirect interest in Buchans
River is 11.7%.

    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 2006 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.acadianmining.com. If you wish to be added to
the Company's e-mail or fax distribution list for future news releases and
updates, please contact Acadian at phone: 902 444-7779, fax: 902 444-3296,
email: mail@acadianmining.com.

    No regulatory authority has approved or disapproved the contents of this
    release.
    




For further information:

For further information: G. William Felderhof, President & CEO; Terry F.
Coughlan, Vice President, (902) 444-7779, Toll Free: 877-444-7774,
mail@acadianmining.com

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Acadian Mining Corporation

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