Etruscan Resources





Etruscan has acquired strategic land positions in three important greenstone belts in Burkina Faso: the Youga Gold Belt, the Banfora Gold Belt, and the Boromo Gold Belt. These strategic land packages cover approximately 1,500 km2. Etruscan also has landholdings in Ghana located on the Bole-Bolgatanga Gold Belt which represents the southwest extension of the 80 kilometer Youga Gold Belt located in Burkina Faso. These landholdings consolidate Etruscan's land position over the Youga/Bole-Bolgatanga Gold Belts where Etruscan now controls in excess of 1,000 km2.

Youga Gold Mine

The Youga Gold Mine is located approximately 180 kilometers southeast of Ouagadougou, the capital city of Burkina Faso and is accessible by paved and laterite roads. Etruscan, through its wholly owned subsidiary Cayman Burkina Mines Ltd, holds a 90% interest in Burkina Mining Company (BMC) which has been granted the rights to exploit the Youga Gold Deposit. The remaining 10% of BMC is held by the Government of Burkina Faso.

The Youga Gold Mine commenced commercial production in mid 2008. Mining is carried out from several open pits with the ore being processed through a conventional gravity-CIL (carbon-in-leach) plant with a design capacity of one million tonnes per annum. As of December 31, 2009 remaining reserves using a US$700 gold price stood at 5.9 MT at an average grade of 2.5 g/t gold (474,000 oz). Average gold recovery from the plant for life-of-mine is anticipated to remain steady at 93-94%. Gold production in fiscal 2008 amounted to 29,305 ounces and in 2009 was 64,879 ounces. With continued operational improvements, forecasted gold production for 2010 is targeted at 80,000 ounces at cash costs of US$550-650 per ounce.

Youga is a hard rock, drill and blast mining operation. Drilling and blasting, and load haul is carried out under contract with PW Mining International Limited. Grid power is delivered to site from Ghana via a 21 kilometer transmission line. A complete backup diesel generated power supply capable of delivering 8 megawatts is at site. A year round supply of water is obtained from the Nakambe River via an 11 kilometer long pipeline to a raw water storage pond. The tailings area is designed to maximize water recovery in an effort to minimize the primary water demand.

The Youga Gold Mine employs approximately 350 full time workers including both expatriate and local positions. There is a program of extensive training of the local work force for the management and skilled positions. In the longer term, it is anticipated that Burkinabe nationals will fill the majority of the operating and management positions within BMC.


Youga Resource and Reserve

The Youga Gold Deposit feasibility study completed January, 2005 by RSG Global (Pty) Ltd. and MDM Ferroman (Pty) Ltd. as updated October, 2006, concluded that Youga would produce an average of 88,000 ounces of gold per year over a 6.6 year mine life from five deposits. Commercial production commenced in July 2008.

The current resource estimate as of December 5, 2009 (which includes mineable reserves) at a 0.5 gram per tonne cutoff grade for the five zones are summarized as follows:

Youga Mineral Resource
Measured Indicated Inferred
Tonnes (MT) Grade (g/t) Ounces Tonnes (MT) Grade (g/t) Ounces Tonnes (MT) Grade (g/t) Ounces
3.5 2.7 302,605 7.6 1.7 406,165 2.6 1.3 111,386

The updated life-of-mine reserves at Youga as at December, 2009 calculated by the Company using a US$700 per ounce gold price are estimated at

Youga Mineral Reserves
Proven Probable Total
Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces
3.0 2.9 g/t 280,000 2.9 2.1 g/t 193,000 5.9 2.5 g/t 474,000

In addition, 1.7 million tonnes have been classified as marginal ore with an average grade of 0.69 grams per tonne. This material will be stockpiled separately and considered for processing at the end of the mine life.


Additional Exploration on the Youga Mining Permit

The Company has completed regional and detailed mapping as well as airborne and ground geophysics over much of the Youga Gold Belt which has identified a number of exploration targets. The Company continues to evaluate near-surface mineralized zones that can provide additional mine reserves. Six potential satellite deposits are known to exist on the Youga mining permit within a three kilometer radius of the Youga mill site: the Nanga Zone, the Leduc Zone, the A2 Village Zone, the Village Tail Zone, A2 West Zones 4 & 5, and the Zergoré Zone. In 2008, the Company completed sufficient work to release resource estimates at a cutoff grade of 0.5 g/t on the Nanga and Tail Zones as follows:

Indicated Resource Inferred Resource
Tonnes (MT) Grade (g/t) Gold (oz) Tonnes (MT) Grade (g/t) Gold (oz)
3.7 1.1 128,000 2.0 1.0 62,000

Insufficient drilling has been carried out to categorize any of these resources as "measured". Additional drilling is planned on all zones to increase the confidence level of the resource categories.


^Top

Youga Gold Belt - Other Permits

Outside of the Youga mining permit, Etruscan holds four exploration permits to the northeast, and two exploration permits to the southwest of the Youga Gold Mine, covering over 400 square kilometers. Regional exploration on these permits has already identified significant target areas at Zerbogo (25 kilometers southwest of Youga), Bougré (13 kilometers southwest of Youga) and Ouaré (35-40 kilometers northeast of Youga). The most promising targets are at Ouaré, where in 2008, the Company completed sufficient work to release resource estimate at a 0.5 g/t cutoff grade as follows:

Inferred Resource
Tonnes (MT) Grade (g/t) Gold (oz)
4.7 2.1 323,000



Youga Resource Expansion Program
click to enlarge


click to enlarge



^Top

Banfora Gold Belt - Burkina Faso West

The Banfora Gold Belt located in western Burkina Faso extends for over 150 kilometers and continues into Côte d'Ivoire, where significant gold occurrences have been reported. Etruscan holds an interest in six exploration permits along the Banfora Gold Belt covering over 600 square kilometers.

The Banfora Gold Belt is one of the most under-explored volcano-sedimentary belts in Burkina Faso. Limited regional mapping and geochemical surveys were carried out in the belt by junior explorers in the mid-late 90's. In recent years, gold digging activity (orpailleur fields) has been undertaken in the northern parts of the belt. Etruscan has conducted regional exploration over the Banfora Gold Belt. Follow-up pitting and auger drilling has delineated four primary and eight secondary drill targets. Drill-ready targets on the Comoé Permit include Phaco Hill (350 meter long target with 0.5 -4.1 g/t in rock samples coincident with a regional arsenic anomaly), and Siniko West (two targets comprising a 700 meter strike length with up to 1.3 g/t from pits and auger drilling). Additional regional soil targets remain to be tested with auger drilling.

In April 2010, the Company finalized a joint venture agreement with AusQuest Limited of Australia whereby AusQuest acquired an initial 51% of the Banfora project for US$1 million and has the right to acquire up to 80% over a six year period by sole funding US$7 million on the Banfora project. AusQuest will act as operator and has developed an initial 10,000 meter drill program to test eight targets identified by Etruscan.


Click to enlarge



^Top

Boromo Gold Belt - Burkina Faso North

Etruscan holds two permits under option in the Boromo gold belt, which hosts the Bissa Gold Deposit of High River Gold Mines Ltd. which hosts 662,000 ounces of indicated and 669,000 ounces of inferred resource. Preliminary investigations by Etruscan in the areas of active gold digging suggests that the potential exists for significant gold discoveries.

Maps and Photos

First Gold Pour Youga Gold Mine
March 7, 2008

--
:Show image 'Youga Mill plan' in New Window:
--
Youga Mill plan
161 KB, approx. 31 seconds at 56.6Kbps
--
:Show image 'Youga Minesite plan' in New Window:
--
Youga Minesite plan
456 KB, approx. 1 minute, 26 seconds at 56.6Kbps

View of grinding mill to ROM pad


View of Plant

Crushed ore on Stockpile Gold Table Ore on conveyor belt


First gold pour


View Video of Ball Mill


^Top
 

Show printable version of 'Burkina Faso - in Full' in a New Window
Email 'Burkina Faso - in Full' to a friend



© 2006 Etruscan Resources Inc. All Rights Reserved. | Disclaimer