Etruscan cuts high-grade at Finkolo

Ongoing reverse-circulation drilling on the Finkolo gold project in Mali has returned some high-grade intercepts for Etruscan Resources (EET-T).

Hole no. 20 targeted the Porphyry zone, and yielded 38 metres (core length) grading 6.4 grams gold per tonne, beginning 46 metres downhole. A 2-metre section of the hole assayed up to 39 grams gold. Etruscan says that a single step-back hole failed to reach its planned depth and did not cut any significant mineralization.

Meanwhile, hole no. 26, collared on the Tabakoroni zone, about 1 km to the south, encountered 20 metres (from 46 m downhole) running 17.1 grams gold, including a 2-metre section of 62 grams gold.

Drilling to the north of hole no. 20 generally returned 1-3 grams gold over widths of 4-8 metres. Hole no. 16, on section 1800N stood out with a 6-metre interval (from 84 m) of 10.5 grams gold. Similar results were seen in holes drilled further south. In all, Etruscan sank 30 holes for 3,724 metres (mostly on the Porphyry zone), with just shy of half exceeding 1 gram gold.

Etruscan plans to immediately follow up on the high-grade results.

Previous air-core drilling at Finkolo intersected disseminated gold mineralization along the eastern contact of an intrusive porphyry over downhole widths of 18-36 metres with average grades of up to 2.4 grams gold, and individual samples grading as high as 8.3 grams. Immediately south of the porphyry a series of narrower zones returned up to 14.4 grams gold over 3 metres. The Tabakoroni zone yielded 6.7 grams over 16.5 metres.

Etruscan can acquire the Finkolo permit by paying Malian-based Bagoe National US$350,000 and spending US$200,000 on exploration by July 18. Bagoe will retain a 2% net smelter return royalty plus a 5% carried interest. The Malian government would have a 10% carried interest in any future mining company.

Australia’s Resolute Mining can take up to a 60% stake in Finkolo spending a total of US$3 million by March 31, 2008. The earn-in price can be reduced by $1 million if Resolute completes a feasibility study. The deal also calls for Resolute to subscribe to US$500,000 worth of Etruscan shares at $2.60 apiece; US$300,000 of the proceeds will be used to finance drilling on Finkolo during Resolute’s due diligence.

Elsewhere in Mali, geochemical surveying over the central portion of the 200-sq.-km Nianemebele permit has outlined 10 km worth of intermittent gold-in-soil anomalies with grades up to 0.3 gram gold. Etruscan has an augur rig on its way to drill test the northwest-trending corridor.

Etruscan can acquire the permit by keeping it in good standing and making $190,000 worth of property payments to the permit holder over five years. The permit holder will retain a 1% carried interest in the project. The option deal gives Etruscan until Mar. 10 to complete its due diligence, including property surveys and sampling.