Vancouver — Emerging gold producer Etruscan Resources (EET-T) posted a first-quarter loss of $1 million from its equity interest in the Samira Hill mine in Niger.
The company and Semafo (SMF-T) each own half of a local company that holds an 80% interest in the US$27-million mine, which opened last fall. The government of Niger holds a 20% interest and a 5.5% production royalty.
The mine produced 17,553 oz. gold in the latest fiscal quarter and 35,575 oz. since the start of commercial production. Samira Hill is expected to produce 120,000 oz. this calendar year from the processing of 1.9 million tonnes averaging 2.2 grams gold per tonne.
At the end of 2004, reserves for Samira Hill and the adjacent Libiri deposit totalled 9.6 million tonnes averaging 2.2 grams gold.
Etruscan also owns 90% of the Youga gold project in Burkina Faso. A feasibility study for the project, completed early this year, concluded that Youga could produce an average of 88,000 oz. gold annually at a cash operating cost of US$255 per oz. over a lifespan of 5.5 years. The study was based on minable resources of 5.5 million tonnes averaging 2.9 grams gold.
Etruscan plans to raise funds to build the mine early this summer, with startup envisaged for 2006.
In nearby Mali, Etruscan is exploring its recently expanded land package for gold deposits. The company also owns 51% of the Tirisano diamond mine in Ventersdorp, South Africa, which produced 4,600 carats in the 9-month period ended March 31, 2005.
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