Etruscan, Resolute look beyond ‘easy oxide’

On the heels of a 53% increase in resources at the Finkolo gold project in western Mali, joint-venture partners Etruscan Resources (EET-T, ETRUF-O) and Resolute Mining (RMGGF-O, RSG-a) are forging ahead with additional drilling at the project.

The 6,100-metre drill program — which will test the vertical depths of the Tabakoroni deposit — wasn’t part of project operator Resolute’s budget, but because of the resource estimate results, Etruscan has decided to front the money so that drilling can go ahead.

Etruscan chief operating officer Don Burton says the program will include 10 diamond-drill holes testing depths between 150 and 300 metres for continuation of high-grade oreshoots found along more than 1 km of Tabokoroni’s strike length.

Burton hopes the results shed some light on the deposit’s potential.

“Those ten holes are widely spaced and they’re going to tell us whether or not the deposit extends at depth,” Burton says.

Measured and indicated resources now stand at 4.62 million tonnes grading 2.6 grams gold per tonne for 382,000 contained ounces gold plus 4.54 million inferred tonnes grading 2.5 grams gold for 364,000 oz. The current resources include drilling to only 150 metres depth.

Burton says it’s time for West Africa to get credit for long-term potential of deeper gold resources, such as Randgold Resources’ (GOLD-Q) Loulo deposit in western Mali, which extends to 900 metres depth.

“In the past, the focus has been to drill off an easy-oxide pit kind of deposit,” Burton says.

He says mining companies have not focused much on testing the sulphide ore beneath oxide deposits in West Africa.

And although Finkolo was first discovered by BHP Billiton (BHP-N, BLT-L) in 1985, the sulphide ore has never been tested.

The drill program includes infill and extension drilling on the nearsurface resource with a focus on the junction of the Tabakoroni main shear zone and the adjacent porphyry zone.

The Finkolo property is close to Resolute’s Syama permit, which is home to the Syama gold mine. The open-pit mine is expected to be ready for production by the end of the second quarter. It has reserves of 1.725 million oz. gold, plus measured and indicated resources totalling 2.4 million oz. gold, which lie beneath the open-pit reserves.

Resolute now has a 60% interest in Finkolo. Under the agreement, Resolute must fund all costs of the joint venture until production of a feasibility study, at which time Estruscan will reimburse Resolute from 50% of its share of future project cash flow.

The cost of the current drill program will be deducted from this payment.