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Gold/Mining/Energy : EET Etruscan Enterprises T -- Ignore unavailable to you. Want to Upgrade?

To: Cal Gary who wrote (228)	11/10/2004 1:26:49 PM
From: Cal Gary	Respond to of 281

Etruscan, Mountain Lake's diamonds really shine 2004-11-10 13:06 ET - News Release Also News Release (C-MOA) Mountain Lake Resources Inc An anonymous director reports TIRISANO DIAMOND PRICES INCREASE TO $588 PER CARAT Etruscan Resources Inc. and Mountain Lake Resources Inc.'s operator, Trans Hex Group Ltd., of the Tirisano diamond mine located in South Africa, has reported that diamond sales since June 1, 2004, have achieved an average price of $588 (U.S.) per carat. Pursuant to an option agreement between Etruscan Diamonds and Mvelaphanda Exploration, Trans Hex became the operator of the Tirisano mine on June 1, 2004, and for the period June 1 to Sept. 30 produced 2,430 carats. Since June 1, 2004, all diamond sales have been made through the Trans Hex tender system. The combination of tendering via Trans Hex, continued strong demand for gem-quality rough diamonds and foreign exchange factors has resulted in a significant increase in the selling prices for Tirisano diamonds when compared with the average price of $407 (U.S.) realized during the prior year. Trans Hex has been incrementally increasing diamond production since June 1, 2004. Trans Hex has reported that the effective use of the Tirisano plant has been increased to 77 per cent. Trans Hex is presently overseeing the expansion of the operation and to date has incurred expenditures of approximately $3.4-million. This expansion is scheduled for completion by the end of December, 2004, with a forecast increase in annual diamond production to 15,000 carats. Diamond production will continue during the expansion and commissioning period with only limited shutdowns. Under the terms of the option agreement finalized in June, 2004, Mvelaphanda Exploration has until Aug. 19, 2005, to earn a 50-per-cent interest in the Nooitgedacht property where the Tirisano diamond mine is located. Mvelaphanda Exploration is a joint venture equally owned by Trans Hex and Mvelaphanda Resources. To earn the interest, Mvelaphanda Exploration must finance and carry out the expansion of the current plant at the Tirisano diamond mine to achieve a minimum design capacity of 300 metric tonnes per hour throughput and must operate the plant for a period of 30 operating days at an average effective use rate of not less than 72 per cent. The estimated cost of the expansion is approximately $8.2-million. Mvelaphanda Exploration is financing all working capital requirements of the Tirisano diamond mine during the option period. Upon completion of the earn-in on the Nooitgedacht property, Etruscan Diamonds and Mvelaphanda Exploration will enter into a 50/50 joint venture arrangement. Trans Hex will act as operator of the joint venture and will report to a joint management committee consisting of equal representation from Etruscan Diamonds and Mvelaphanda Exploration. Mvelaphanda Exploration has stated that it expects to meet the earn-in conditions prior to the August, 2005, deadline. WARNING: The company relies upon litigation protection for "forward-looking" statements.