Etruscan breaks ground at Youga (April 27, 2005)

Earthmoving and general site preparations have begun at Etruscan Resources‘ (EET-T) 90%-owned Youga gold project in Burkina Faso.

The initial phase of work includes upgrading of the project’s main access road, and clearing and terracing of the main plant site. On site roads are also being built and upgraded.

The terraced plant site will eventually host a 130-tonne-per-hour ball mill that the company has agreed to buy from the Louvicourt copper-zinc mine in Val d’Or, Que. The mill is slated for decommissioning at the end of June; thereafter it will be dismantled, packaged and shipped to Youga. Louvicourt is owned 45% by Novicourt (NOV-T), 30% by Aur Resources (AUR-T) and 25% by Teck Cominco (TEK-T). The deal is subject to positive inspection by an independent engineering firm. A refurbished jaw crusher based in South Africa is expected on site in the fall.

Youga is expected to begin producing at an annualized rate of 88,000 oz. by mid 2006; cash operating cost are pegged at US$255 per oz. over a 5.5-year mine life. The operation will target mineable reserves totalling 5.5 million tonnes grading 2.9 grams per tonne, based on a gold price of US$400 per oz. (T.N.M., Jan. 17-23/05).

The reserves will be mined by contractor via three open pits with ore processed through a centrally located conventional, 1-million-tonne-per-year gravity/carbon-in-leach plant. The average gold recovery is pegged at 93%.

The government of Burkina Faso holds the remaining 10% of the project.