I think both are true. God molding Adam into a likeness of his own. Taking the dirt (where extinct lifeforms are preserved) and forming this being that resembled himself (like any statue, it was a little slopping and ape-like at first, but as time went on and God shaped the dirt it started to resemble homo sapians more and more).
Now noramlly I do not talk in this abstract manner or so 'airy' but this is as close as I can get to expressing the harmony between my faith and my knowledge in science.