Partners up Tirisano resource

Partners Etruscan Resources (EET-T) and Mountain Lake Resources (MOA-V) have outlined more diamondiferous gravels at their Tirisano alluvial mine in South Africa.

Indicated resources now stand at 10.4 million cubic metres grading 2.9 carats per 100 cubic metres. The previous estimate was 8.2 million cubic metres at the same grade.

Both estimates were tabled by South African-based RSG Global, are based on a bottom cutoff screen size of 2 mm, and exclude dilution. Also excluded are several nearby prospects, where drilling continues.

Tirisano, which began commercial production in November, is expected to produce 19,200 carats annually at an operating cost of US$2.74 per tonne of gravel treated. At that rate, the existing resource should last 12 years.

Based on development and historic records, Tirisano’s gems are expected to fetch an average of US$400 per carats to generate US$7.7 million in annual revenue. Operating income, before tax, is estimated at US$4.4 million per year, for an after-tax cumulative profit of US$27 million. An extra US$36 million is generated for each additional 10 million tonnes processed, assuming all else remains the same.

Etruscan and Mountain Lake has sold another 504 carats, bringing to 913.8 carats the total amount sold since the fall. The recent parcel averaged US$373 per carat, and the entire bunch, US$437 per carat.