Finkolo gold results lift Etruscan (November 19, 2007)

Vancouver — Etruscan Resources’ (EET-T, ETRUF-O) sinking share price got a little boost recently, after the company released drill results from the Finkolo gold project in Mali and announced a $35-million financing in the space of a week.

Finkolo, the most advanced of Etruscan’s projects in Mali, is under an option agreement with Resolute Mining (RMGGF-O, RSG-A), which acts as project operator. Finkolo covers 160 sq. km along the Syama gold belt in southern Mali.

Resolute recently completed a 6,700-metre drill program at Finkolo, and results from the first 11 holes confirm the depth potential of the main Tabakoroni zone. Highlights include hole 215, which intersected 51 metres grading 5.7 grams gold per tonne from 39 metres down-hole, including 6 metres of 33 grams gold, and hole 200, which returned 21 metres of 10.9 grams gold from 127 metres depth, including 1 metre of 205 grams gold.

The Tabakoroni shear zone has been outlined over a strike length of 1.7 km and to a vertical depth of 130 metres. Mineralization appears to occur in a series of steeply south-plunging mineralized shoots; the latest drilling indicates these shoots continue at significant grades and widths well below the tested oxide zone. The zone remains open at depth.

In expansion drilling, hole 226 stepped out along strike to the north and returned 7 metres grading 17.6 grams gold. Along strike to the south, hole 207 cut 35 metres of 3.3 grams gold.

Etruscan anticipates having a resource estimate for Finkolo by the end of the year. A backlog of samples at the assay lab has delayed the report.

Finkolo is contiguous with Resolute’s Syama project, where Resolute is spending $118 million to build a mine expected to be complete by year-end. Current minable reserves at Syama are estimated at 1.6 million contained ounces gold at an average grade of 4.1 grams gold.

Resolute recently finished spending the necessary funds to earn a 60% interest in Finkolo. Under the terms of the option agreement, Resolute must finance all costs of the joint venture until a feasibility study is complete; Etruscan is required to reimburse Resolute from half of its share of future project cash flow.

The Finkolo drill results buoyed Etruscan’s share price 12 or 4.7% to close at $2.65. The company has a 52-week trading range of $2.24 to $4.48 and has 121.5 million shares issued.

In other Etruscan news, the company closed a public offering of 11.7 million units, consisting of one share and one warrant, at a price of $3 per unit for gross proceeds of $35.1 million. CIBC World Markets and Cormark Securities acted as co-lead underwriters for the offering.

Etruscan says the net proceeds of the offering will be used to complete construction of the Youga gold project in Burkino Faso, where an initial gold pour is scheduled for December; to complete a feasibility study on the Agbaou gold project, in Cte d’Ivoire; and to finance continuing exploration on its properties in West Africa and Namibia.