SAMIRA MOVES TO FEASIBILITY
Etruscan Res announcement/Niger update
Thursday, September 17, 1998 08:53 AM
(Full text of press release from ISDN Wire Service) ETRUSCAN RESOURCES INC. - SAMIRA MOVES TO FEASIBILITY DARTMOUTH, NOVA SCOTIA, Sept 16 - Etruscan Resources Inc. (EET.TSE) announced today that it will undertake a feasibility study on the Samira gold deposit in Niger, West Africa. Preliminary in-house engineering and design work indicates that the oxide resource will support a 3,300 tonne per day open pit heap leach mining operating that will produce between 70,000 and 80,000 ounces of gold per year at a direct operating cost of $US150 per ounce. Capital costs are estimated at $US12,000,000 and the project economics indicate a 1 1/2 year payback period with an internal rate of return (IRR) of 44% based on a gold price of $US300. An independent consulting firm will lead the feasibility study. Etruscan will also retain outside expertise for metallurgical and engineering design as well as environmental studies. Management is completing its review of candidate companies and has initiated discussions with the appropriate institutions for project financing. The Company has initiated a 15,000 meter combined core and reverse circulation drilling program to bring the oxide resource into the measured category on 25 meter centers. The feasibility study will be further supported by detailed metallurgical testing and costing studies to be completed by mid-December to facilitate the arranging of project financing. Construction is anticipated to begin in the second quarter of 1999 with gold production scheduled to commence in the fourth quarter of 1999. Of the original 1.81 million ounce resource at Samira, the oxide portion, based on 50 meter drill centers, is estimated at 6,435,000 tonnes at an average grade of 2.49 grams per tonne using a 1.0 g/t cutoff or 14,580,000 tonnes at an average grade of 1.41 grams per tonne using a 0.5 g/t cutoff. Management is confident that additional near surface oxide deposits will add ounces to the resource base. The feasibility study does not consider any sulphide resources at this time. Rick Van Nieuwenhuyse, President, said, "We believe that it is in the best interests of our shareholders to move Samira to production and to realize significant cash flow. Samira is a tremendous asset and we are confident that the feasibility study will demonstrate the quality of our ounces and will put Niger on the map as an important low cost gold producer in West Africa." Etruscan is directly, and through its subsidiaries, involved in the acquisition, exploration and development of mineral properties in West Africa. The common shares of Etruscan are traded on The Toronto Stock Exchange and The Vancouver Stock Exchange under the symbol "EET". ON BEHALF OF THE BOARD OF DIRECTORS OF ETRUSCAN RESOURCES INC. (signed) Gerald J. McConnell Chief Executive Officer For more information contact: Gerald J. McConnell, Dartmouth, Nova Scotia (902) 468-9270 Rick Van Nieuwenhuyse, President, Los Gatos, California, USA,
(408) 395-1169THE VANCOUVER STOCK EXCHANGE HAS NEITHER APPROVED NORDISAPPROVEDOF THE CONTENTS OF THIS NEWS RELEASEMore extensive information on Etruscan can be found on our homepage at etruscan.com - 30 -
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