Partners sweeten Samira Hill project

Ongoing drilling at the Samira Hill project in Niger has confirmed two high-grade zones in the otherwise low-grade Libiri gold deposit.

Partners Etruscan Resources (EET-T) and Semafo (SMF-T) are in the midst of an 11,000-metre drill campaign aimed at expanding and proving up the known oxide resource in hopes of adding it to their already-developing Samira Hill deposit, 3 km to to the northeast. Previous operators placed Libiri’s resource at 9.4 million tonnes grading 1.6 grams gold per tonne, based on a 0.5-gram cutoff.

Results are now available for 18 of the 26 holes drilled so far. All returned impressive results, though several fared better by reaffirming higher grades in what is now called the A zone. Some of the better results include:

hole 8, which cut 15.2 metres (from 56.1 to 71.4 metres) of 5.69 grams gold;

hole 9, which cut 22.9 metres (20.9-43.8 metres) of 4.2 grams gold; and

hole 20, which cut 13.7 metres (34.7-48.4 metres) of 3.76 grams gold and 12.2 metres (88.1-100.3 metres) of 5.41 grams gold.

Highlights from holes collared in the second zone, about 250 metres to the east, include:

hole 32, which averaged 3.63 grams over 13.7 metres (25.4-39.1 metres) and 4.3 grams over 15.2 metres;

hole 37, which averaged 3.16 grams over 33.5 metres (28.5-62 metres), including 9 metres of 7.3 grams gold; and

hole 39, which averaged 10.05 grams over 3 metres (57.5-60.5 metres).

Overall, gold values vary from 1.1 to 10.05 grams over mineralized intervals of 3-102 metres. Many of the intersections in the higher-grade zones are contained in larger, low-grade halos; both remain open.

Libiri is part of the Saoura mining permit formerly owned by Ashanti Goldfields (ASL-N) and Iamgold (IMG-T). Etruscan optioned the property in early 1999 and, in turn, dealt Semafo a half-interest in that and its adjoining Tiawa permit. In return, Semafo covered the acquisition costs for the former and agreed to finance the balance of funds needed to bring the Samira Hill deposit, on the latter, to production.

As part of their due diligence, the partners sank five confirmation holes between earlier, wider-spaced ones. Better-than-anticipated grades, such as 13.05 grams over 7.9 metres, are what originally alerted the partners to the possibility of distinct higher-grade zones.

Resources at Libiri have already been internally revised to 11.7 million tonnes grading 2.07 grams gold, based on a cutoff grade of 1 gram. The increase in size is attributed to the deposit’s strike length being extended by 900 metres to 1.9 km and to the use of more precise specific gravity and geological modeling. The partners expect that the current drill program will add even more ounces by bumping up the deposit’s average grade.

The Libiri deposit lies in sedimentary rocks near the footwall contact with enclosing greenstones and is characterized by silicification with veining and grades similar to those found at Samira Hill, 3 km to the northwest. Recent geophysical surveying and auger drilling between the two has confirmed that both are part of the same sedimentary horizon, making this the newest gold belt to emerge in West Africa. Another 8 km of prospective horizon was traced east of Libiri.

Additional drilling will attempt to outline resources between the two deposits.

Meanwhile, development work at Samira is continuing on schedule, with startup projected for the fourth quarter. At full steam, the open-pit operation is expected to yield 67,000 oz. gold annually at a cash operating cost of US$168 per oz. over a minimum mine life of six years.

Etruscan and Semafo each own a 45% interest in the project, with the remaining 10% held by the government of Niger. Each company holds its interest through African Geomin, a Niger-incorporated entity.