Armed with the proceeds from a $15-million financing,
The company has two projects on track to production: the 40%-owned Samira mine in Niger and the 90%-held Youga project in Burkina Faso. Samira is expected to produce its first gold this fall, whereas construction at Youga is slated to start later this year. In nearby Ivory Coast, bankable feasibility study is under way at the 85%-owned Agbaou gold project.
Once up and running, the company expects each of these three mine projects to produce at an annual rate of about 100,000 oz., starting with Samira.
Etruscan and partner
A US$44-million mine is proposed, based on minable reserves of 10 million tonnes grading 2.21 grams gold per tonne. Cash costs are expected to average US$203 per oz. The project also contains resources that could extend the mine beyond the planned 7-year life.
Etruscan acquired 90% of the Youga project for US$6.5 million early this year. Measured and indicated resources stood at 7.3 million tonnes averaging 3.17 grams, plus an inferred resource of 7.73 million tonnes at 2.05 grams.
The company has since launched a program of infill and definition drilling, with work focused mostly on the A2 Main deposit. The initial phase in the central portion of the deposit is now completed. A second phase, now under way, is testing both the northern and southern extensions of the A2 Main deposit, as well as a newly discovered mineralized structure intersecting the northern end of the deposit.
Etruscan has released results from infill drilling on the A2 Main deposit. They include: 51.5 metres grading 1.8 grams gold per tonne; 70.4 metres of 3.1 grams; 41.5 metres of 3.8 grams; 7.1 metres of 1.8 grams; 44.8 metres of 4.4 grams; 28.4 metres of 2.5 grams; 46.1 metres of 2.8 grams; 29.6 metres of 3.2 grams, and 30.3 metres of 2.6 grams. Most of these intersections contained higher-grade intervals (up to 11.6 grams).
Etruscan also drilled two holes to test the down-plunge extension of the A2 Main deposit. These returned 6.3 metres grading 3.4 grams and 20.9 metres grading 1.6 grams, respectively.
Several holes tested a new zone near the northwestern corner of the A2 Main deposit. The first hole drilled to test this target intersected 32 metres averaging 2.47 grams gold, whereas the second returned 2 grams over 6.3 metres.
At the southern strike extension, Etruscan drilled eight shallow holes, all of which intersected mineralized zones similar to those found in the central portion of the A2 Main deposit. Highlights include: 12.6 metres of 3.5 grams gold per tonne; 35.4 metres of 5.7 grams, 26.1 metres of 2.3 grams; and 20 metres of 2.6 grams.
The drill program has confirmed the potential for adding to existing reserves and resources in several new areas along strike and at depth. Metallurgical tests show that recoveries remain in the 90% range, suggesting the proposed pits could be enlarged, and that underground mining is feasible, provided the high-grade zones continue at depth.
The Youga project is already permitted for mine development by the government of Burkina Faso.
Etruscan also holds a 51% interest in the producing Tirisano alluvial diamond mine in South Africa. The company is moving the nearby Blue Gum deposit to the feasibility stage. Both projects are in the Ventersdorp diamond district.
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