Etruscan, Mountain Lake recover 2,819 cts over 54 days
2005-09-08 09:38 ET - News Release
Also News Release (C-MOA) Mountain Lake Resources Inc
Mr. Robert Harris of Etruscan Resources reports
ETRUSCAN'S KLIPGAT OPERATION DEMONSTRATES ECONOMICS OF ALLUVIAL DIAMOND MINING
Etruscan Resources Inc. and Mountain Lake Resources Inc. have received production figures from their South Africa subsidiary, Etruscan Diamonds (Pty.) Ltd., for the first two months (54 days) of operations (June 23 to Aug. 31) at the Klipgat diamond mine. A total of 2,819 carats were recovered over this period, giving an average grade of the gravel treated of 2.3 carats per 100 cubic metres. The contract operator, Gothoma Diggings (formerly Basson Delwery), commenced mining and processing operations on June 23 following issuance of the new mining permit by the South African government. During the period of June 23 to Aug. 31, Gothoma Diggings processed 122,881 cubic metres of gravel through the mill at a cost of $4.15 (U.S.) per cubic metre. A total of 2,452 carats have been sold realizing a value of 8.0 million rand ($1.24-million (U.S.)) or $505 (U.S.) per carat. The average cash cost of processing was $180 (U.S.) per carat.
Period June 23 to Aug. 31
Days in
production 54 days
Total
throughput 122,881 cubic metres
Diamonds
produced 2,819
Cost per
cubic metre
processed US$4.15
Revenue per
cubic metre
processed US$11.62
Average sale
price per carat US$505.00
The Klipgat property is located in the Mooi River Valley approximately 40 kilometres to the east of Etruscan Diamond's Tirisano diamond mine, which is a joint venture with Mvelaphanda Exploration (Pty.) Ltd. The Klipgat project is being developed in partnership with the Bakwena Ba Mare A Phogole community, the local Black Economic Empowerment (BEE) community located on the Klipgat property. Gothoma Diggings employ a number of the community members as part of Etruscan's social and labour plan to facilitate skills transfer to community members.
Mooi River exploration
In partnership with Gothoma Diggings, Etruscan Diamonds is presently bulk sampling several sites along the Mooi River in areas where Etruscan has recently received a prospecting permits. Gothoma is using its mining equipment and plant to carry out the bulk sampling program under the supervision of the Etruscan technical team.
Robert Harris, vice-president of operations of Etruscan Resources, stated: "We are very encouraged by these initial production figures from Klipgat. This operation has demonstrated the economics of mining alluvial gravels and has assisted in our understanding of the potential of the total Mooi River gravel package. Etruscan Diamonds controls properties on the Mooi River which cover over 20 kilometres of known gravel runs. We are presently looking at expanding in this area, and have started the bulk sample program to identify the next potential mine site, while we continue our exploration efforts to expand our knowledge of the Mooi River gravels runs."
Robert Harris, BSc, MSc, Eng, PEng, and vice president of operations of Etruscan Resources, is the qualified person overseeing Etruscan's diamond projects in South Africa.
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