OR the EET version with some add info ...
Etruscan reports on Samira's first quarter
Symbol: EET.TSX
WINDSOR, NS, March 17 /CNW/ - Etruscan Resources Inc. (EET.TSX) announced
today the financial results of the operation of the Samira Hill Gold Mine for
the last quarter of 2004 (all currency figures are in U.S. dollars). The
Samira gold mine, inaugurated on October 5th, 2004, processed, during the last
quarter of 2004, a total of 398,411 tonnes of ore at an average grade of
2.03 g/t, leading to total gold production of 21,521 ounces, in addition to
the 4,234 ounces of gold in the circuit at the end of December 2004. To this
amount a total of 1,325,362 tonnes of waste was extracted at an average strip
ratio of 3.33:1.
Gold sales for the last quarter of 2004 totalled $7,076,691. During this
period the Samira Project sold a total of 19,138 ounces of gold at an average
price of $370 per ounce which was delivered against forward sales contracts.
The production cash cost at the Samira Mine for the last quarter of 2004
was $192 on produced ounces and $200 on sold ounces. The total cash cost of
the operation was $225 for the last quarter of 2004. The reduction in cost is
mainly attributable to a high percentage of throughputs of oxide ore at an
average grade of 2.03 g/t as compared to the initial feasibility estimates. In
addition, the plant operation witnessed a considerable reduction in cost
associated to significantly less consumables (cyanide, lime, and peroxide)
than called for in the feasibility study.
The proven and probable reserves at Samira Hill as of December 31, 2004
stand at 9,637,200 tonnes at 2.21 g/t Au containing 591,700 ounces of gold,
using a gold price of US$ 353 per ounce. The total measured and indicated
mineral resources stand at 25,110,400 tonnes at 1.85 g/t Au containing
1,495,000 ounces of gold. The Samira Hill Gold Mine is scheduled to produce
618,000 ounces of gold in its 6.3 years of operation as estimated by Resources
Service Group Pty Ltd ("RSG") of Perth Australia.
The Samira Hill deposit is believed to be one of a number of significant
gold deposits within what is now recognized as an emerging gold belt known as
the "Samira Horizon". The Samira Hill Gold Mine has reinforced its position
along this belt and has allocated a $500,000 US exploration budget to further
increase its resource portfolio.
The Samira Hill Gold Mine is owned 40% by Etruscan, 40% by SEMAFO and 20%
by the State of Niger. The Samira Hill Gold Mine is the first of three known
deposits which Etruscan is bringing to production. The second deposit to be
developed by Etruscan is the Youga Mine located in Burkina Faso and the third
deposit is the 1.1 million ounce Agbaou deposit located in Ivory Coast.
In January, Etruscan announced the receipt of a positive bankable
feasibility study for the Youga Gold Project in Burkina Faso, West Africa. The
feasibility study concludes that Youga will produce an average of 88,000
ounces of gold per year at a cash operating cost of US$255 per ounce over a
5.5-year mine life. MDM Ferroman (Pty) Ltd. ("MDM") of Randburg, South Africa
was the lead consultant engaged by Etruscan to oversee completion of the
study.
The feasibility study is based on mineable reserves of 5.5 million tonnes
of ore with an average grade of 2.9 grams per tonne calculated at an un-hedged
gold price of US$400 per ounce. The reserve estimation was completed by RSG
Global of Perth, Australia in accordance with National Instrument 43-101. The
study proposes open pit mining of three of five pits via contract mining with
the ore to be processed through a conventional gravity-CIL (carbon-in-leach)
plant with a design capacity of 1 million tonnes per annum. The average gold
recovery and mining strip ratio are respectively 93% and 5.5:1. Initial
capital costs for the Project are estimated to be US$34 million excluding
working capital.
Etruscan has engaged RMB Resources Ltd. ("RMB"), a wholly owned business
of Rand Merchant Bank of South Africa, to arrange project debt financing. RMB
has completed its initial project due diligence and credit review. Etruscan
targets completion of the project financing by second quarter 2005. In the
interim Etruscan has initiated the procurement of certain equipment and
intends to quickly launch the detailed engineering and design phases of the
Project.
Etruscan Resources Inc. is a diversified Canadian junior mining company
that is focused on the exploration and development of gold properties in West
Africa and diamond properties in South Africa. The common shares of Etruscan
are traded on The TSX Exchange under the symbol "EET". More extensive
information on Etruscan can be found on its home page at
etruscan.com. |
