AFRICA SPECIAL — Drilling to test Etruscan’s Tiawa concession in Niger

As part of an option agreement with Etruscan Enterprises (EET-V), Placer Dome (PDG-T) is sending a geological team and several diamond drills to the Tiawa concession in Niger, West Africa.

The major can earn a 51% interest in a 81-sq.-km portion of the Tiawa concession, which includes the Samira gold deposit, by paying US$50 million.

Etruscan is exploring the remainder of the 1,240-sq.-km concession through its 56%-owned subsidiary, African GeoMin Mining Development.

The most advanced target at Tiawa is the Samira deposit, which consists of several gold zones. Etruscan recently carried out reverse-circulation drilling on the Samira West and East zones, though no drilling was carried out in the Main zone.

Drill results from Samira West include: 25 metres grading 2.96 grams gold per tonne (from 11 to 46 metres); 21 metres of 1.76 grams (from 9 to 30 metres); 63 metres of 1.51 grams (from 53 to 116 metres); 26 metres of 0.86 gram (from 74 to 100 metres); and 45 metres of 1.45 grams (from 84 to 129 metres).

Drill results from Samira East include: 32 metres of 3.21 grams (from 21 to 53 metres); 35 metres of 0.84 gram (from 40 to 75 metres); 13 metres of 1.97 grams (from 28 to 41 metres); 57 metres of 1.38 grams (from 55 to 112 metres); 51 metres of 1.7 grams (from 1 to 52 metres); and 36 metres of 1.69 grams (from 36 to 72 metres).

This work is reported to have increased geological resources at Samira to 27.8 million tonnes averaging 2.02 grams gold, for 1.81 million contained ounces, up from 1.51 million oz. reported in November 1996.

Donald Burton, Etruscan’s vice-president of exploration, says Samira, though consisting of three zones, would be mined as a single open pit. “The deposit is split into three zones because, in one case, a gabbro dyke cuts through, but does not offset, the deposit,” he explains. “There are a fold and fault in the other case, but, again, it does not disrupt the deposit, which is on a continuous horizon.”

Placer Dome, which recently paid Etruscan $2 million for the option, has agreed to spend US$4 million to explore its portion of the concession over the next 18 months. The exercise of the option, however, is conditional on Etruscan’s acquisition, before April, of the remaining 44% of African GeoMin Mining’s shares. Should the acquisition fail, Placer Dome will be repaid the US$2 million and released from its exploration obligation.

Etruscan Vice-president William Young says the acquisition is “almost complete” and awaits shareholder approval.

Samira horizon

In the meantime, the major plans to start exploring the Samira horizon, which has been traced over 18 km of strike length across the optioned area.

Definition drilling of the Samira gold deposit is also planned.

The Samira deposit is hosted by a distinctive sedimentary sequence of argillaceous and graphitic schists, quartzite and greywackes, with minor intercalations of volcanic rock. Exploration to date has identified three major areas of anomalous gold and pathfinder element geochemistry, with coincident anomalies analogous to the Samira gold deposit along this horizon.

“We’ve also pushed out [from the area optioned to Placer Dome] and picked up four more anomalous areas similar to Samira,” says Burton, adding that results from that work should be released shortly.

Burton says Etruscan is further encouraged by the results of recent exploration conducted by partners Iamgold (IMG-T) and Ashanti Goldfields (AHD.U-T) on the adjoining Soura permit.

“They’ve made a significant gold discovery on what we believe to be the strike extension of the Samira deposit,” he says. “We think other large deposits will be found on that horizon. Our view is that we are seeing the opening up of a new gold belt or district.”

In Mali, Etruscan has advanced the Koma Bangou gold concession, a joint venture with a state-owned mining company. A prefeasibility study has been completed and is being revised as a result of the decision by Echo Bay Mines (ECO-T) not to pursue a stake in the project. Echo Bay, which held a minor equity position in Etruscan, has since sold those shares to Placer Dome.

At last report, Koma Bangou had a resource of 10 million tonnes grading 0.97 gram gold per tonne, or about 308,000 contained ounces. “It’s low-grade,” Burton concedes, “but it is in saprolite and will require no drilling and blasting.”

Burton says Etruscan is looking at acquiring a third concession in Niger.

The junior is held 9.4% by NovaGold Resources (NRI-T).