Etruscan tests anomaly in Mali

Nova Scotia-based Etruscan Resources (EET-T) has begun a program of soil sampling and auger drilling over a regional gold-in-soil anomaly on the 200-sq.-km Nianembale permit in Mali, West Africa.

The 3.5-km-long anomaly was identified by a United Nations development program, which conducted sampling on a 200-by-1,000-metre grid, and encountered values of up to 1.24 grams gold per tonne. The exploration branch of the Malian state geological survey later confirmed those results. No follow-up work was ever completed.

Etruscan expects results from the soil survey to begin rolling in by early December.

The company can earn a 100% stake in the property by keeping the permit in good standing and making $190,000 in property payments to the permit-holder over five years. The vendor retains a 1% carried interest in any mine developed on the project. Etruscan has until March 10, 2004, to complete its due diligence.

Elsewhere in Mali, Etruscan is busy at the Finkolo gold project, where Australia’s Resolute Mining has inked an option deal on up to a 60% stake. Resolute can take an initial 50% by spending US$2 million on the project before March 31, 2006, and it can boost this to 60% by spending an additional US$1 million or completing a feasibility study over the subsequent two years.

If Resolute takes the cash route to its 60%, the company will cover Etruscan’s feasibility costs, to be reimbursed out of half its partner’s cash flow from any mining operation on the permit.

Also under the deal, Resolute will subscribe to US$500,000 worth of Etruscan shares at $2.60 apiece; US$300,000 of the proceeds will be used to finance drilling on Finkolo during Resolute’s due diligence.

A 3,000-metre drill program is currently focused on the Tabakoroni porphyry target. Results are expected by mid-December. Previous air-core drilling cut disseminated gold along the eastern contact of the porphyry over down-hole widths of 18-36 metres with average grades of up to 2.42 grams per tonne gold. To the immediate south, a series of narrower zones returned up to 14.35 grams gold over 3 metres.

Finkolo hosts three gold anomalies on the same geologic horizon as the Syama deposit, where Resolute has signed an option deal with Randgold Resources (GOLD-Q) to earn an 80% interest.

Resolute is in the midst of a prefeasibility study which is considering the mining of deeper sulphide ore. The study entails metallurgical tests, process engineering studies, and drilling.

At last report, Syama had a measured and indicated resource of 50.6 million tonnes grading 3.17 grams per tonne.