Tirisano twinning on track

A $1.5 million loan from the Industrial Development Corporation of South Africa will allow Etruscan Resources (EET-T) and Mountain Lake Resources (MOA-V) to proceed with the first phase of expansion at the Tirisano alluvial diamond mine in South Africa.

The five-year term loan bears interest at the South African prime lending rate, and is subject to final documentation and standard conditions.

Expansion plans at Tirisano call for the addition of extra scrubbing and screening capacity, boosting plant throughput from 600,000 to 960,000 cubic meters per annum. Slated for completion by September, the expansion is expected to increase diamond production by about 8,400 carats to 27,600 carats annually.

Etruscan has already begun engineering and design studies aimed at adding a second plant to boost annual throughput to 2.7 million cubic metres and diamond production to 78,000 carats per year.

Construction of the second plant is slated to begin in this fall, and is expected to take 12 months. Several South African financial institutions, including IDC, have already expressed interest in financing the second expansion.

Bateman Minerals is charged with engineering and supplying equipment for the first phase expansion, and will manage and supply the second expansion.

Diamond production will continue during both expansion projects.

Etruscan says the twinning of Tirisano’s plant will reduce the mine’s life to eight years while doubling its output.

Recently, a lot of 1,510 carats worth of diamond from the 100,000-tonne controlled mining block at Tirisano were sold for US$440 per carat — US$40 per carat more than the life-of-mine projection.

To the end of March, Tirisano has generated US$906,000 in revenue via the sale of 2,064 carats for an average value of US$439 per carat. The next tender of diamonds is scheduled for early May.

At last report, Tirisano’s in situ indicated resource stood at 10.4 million cubic metres grading 2.9 carats per 100 cubic metres (T.N.M.,Apr. 21-27/03).

Etruscan owns 51% of Tirisano; Mountain Lake has a 25% stake. The remainder is held minority shareholders of a subsidiary through which Etruscan holds its interest.

Etruscan shares were 14 or 16.3% higher at $1 in late afternoon trade in Toronto on May 6. For their part, Mountain Lake shares were 8 or 12% high at 75 in Vancouver.