Etruscan’s Mali project yields positive grades at lower depths

Partial drill results from Etruscan Resources‘ (EET-T) Tabakoroni zone at its Finkolo permit in Mali have uncovered 44 meters of 11.6 grams gold per tonne, including 9 metres of 30.6 grams gold per tonne in hole 272.

The outstanding intercept, drilled to a depth of 165 meters, indicates that additional high-grade shoots can be expected with more closely spaced drilling, the company says.

Indeed the latest results show that the mineralization at Finkolo extends to at least 300 vertical meters, the company says.

The Finkolo permit covers 160 sq km along the Syama gold belt, in Mali South, about 300 km southeast of Bamako.

Other highlights from the drill program on the 1.7 km Tabakoroni zone were 16 meters grading 16.2 grams gold per tonne, including 4 meters of 56.3 grams gold per tonne in hole 258.

Six of the eight deeper holes intersected mineralization at depths up to 300 meters. These included 14 meters of 3.4 grams gold per tonne in hole 270, and 14 meters of 3.1 grams gold per tonne and 7 meters of 2.7 grams gold per tonne in hole 269. Results from two of the deeper exploration holes have yet to come in.

In addition, reverse circulation drill results have been received for 11 exploration holes drilled in the porphyry zone.

RC intercepts from the porphyry zone returned 9 meters of 2.2 grams gold per tonne; 4 meters of 2 grams gold per tonne; 7 meters of 2.4 grams gold per tonne; 7 meters of 1.1 grams gold per tonne; and 3 meters of 4.5 grams gold per tonne.

Finkolo’s current resource of 382,000 oz. gold in the measured and indicated categories and 364,000 oz. gold in the inferred only extends to 120 meters. That resource estimate was undertaken by

Etruscan’s joint-venture partner, Resolute Mining (RMGGF-O, RSG-a). Resolute holds a 60% interest in the joint venture and acts as its operator and manager.

At a 1 gram per tonne cutoff grade, Resolute reported 4.62 million tonnes of measured and indicated resource at 2.6 grams gold per tonne (for 382,000 oz. gold) and a further 4.54 million tonnes of inferredresource at 2.5 grams gold per tonne (for 364,000 oz. gold).

The Finkolo permit is contiguous to Resolute’s Syama gold mine project. The mine will be completed in the second half of this year at an estimated cost of US$151 million.

Open-pit mineable reserves at Syama are estimated to be 1.73 million oz. gold at an average grade of 3.6 grams gold per tonne. An additional 2.4 million oz. gold in the measured and indicated categories lies beneath the current open-pit reserves and are being evaluated for potential underground mining.

So far exploration at Finkolo has concentrated on developing resources on the Tabakoroni deposit. But now several other targets are being evaluated for reconnaissance drilling elsewhere on the joint-venture property.

Under the terms of Etruscan’s joint venture agreement, Resolute must fund all costs until a feasibility study is produced. Etruscan will reimburse Resolute from 50% of its share of future project cash flow.

In order to accelerate the exploration of the depth potential of the Tabakoroni deposit, Etruscan elected to contribute to the funding of the deep drilling costs, which contributions will be credited against amounts owing by Etruscan to Resolute.

Resolute is committed to an additional 15,000 meters of in-fill drilling in support of a feasibility study that will determine the most effective means of exploiting the deposit.

Etruscan holds about 13,000 sq. km of land in West Africa. Its principal mine development projects are the Youga Gold project in Burkina Faso, the Agbaou gold project in Cote d’Ivoire and the Finkolo gold project in Mali.

Etruscan has a number of advanced and early stage exploration projects in Burkina Faso, Mali, Cote d’Ivoire, Ghana and Namibia.

Etruscan also holds a 53.7% interest in Etruscan Diamonds, which has a dominant land position in South Africa’s Ventersdorp diamond district.

In late afternoon trading, Etruscan was up 9 a share, or 5.45%, at $1.74.

Over the last year it has traded at between $1.52 and $3.50 per share. The company has 124.1 million shares outstanding.