Etruscan cuts new gold at Youga (May 25, 2005)

Trenching has encountered a new zone of gold mineralization some 2 km to the south of the five know gold deposits on Etruscan Resources‘ (EET-T) 90%-owned Youga project in Burkina Faso, West Africa.

So far, the new zone, which was discovered during systematic geological mapping, has been confirmed in 7 trenches over a strike length of 400 metres; the zone averages 25 metres in width.

The discovery was made in outcroppings in a riverbed, 300 metres south of the project’s Tail zone. Rock sampling returned between 0.5 gram and 1.9 grams gold per tonne.

Assay results from trenches cut across the zone include:

• trench 201 — 22 metres grading 0.98 gram gold per tonne;
• trench 200 — 17 metres of 1.2 grams gold and 18 metres of 0.8 gram;
• trench 199 — 6 metres of 1.4 grams gold and 24 metres of 1.5 grams gold, including 4 metres of 5.6 grams;
• trench 195 — 18 metres of 2 grams, including 6 metres of 4.1 grams; and
• trench 202 — 36 metres of 1.9 grams, including 7 metres of 6 grams.

Two trenches cut sub-parallel to zone returned:

• trench 194 — 96.7 metres of 1.6 grams gold, including 12 metres of 4.1 grams; and
• trench 203 — 26 metres of 2.4 g/t (including 18 metres of 3.1 g/t)

The zone remains open along strike to the north and south.

Gold mineralization is associated with foliated arkose and intense silicification, similar to the A2 Main zone, which is home to around 70% of Youga’s existing gold reserves.

Etruscan plans to cut additional trenches along strike to the north to test for extensions, and a possible link with the A2 Tail zone about 200 metres away. Trenching along strike to the south is aimed at determining if the zone turns and connects with the Zegore zone, some 700 metres to the east.

The company also has a drill rig on its way to test the discovery at depth with 5,000 metres worth of diamond drilling.

Meanwhile, drilling on the A2 West zones 2 and 3 has boosted mineable reserves to 6.6 million tonnes running 2.7 grams gold per tonne, for around 573,000 contained ounces; that’s up from the 515,000 contained oz. reported in a feasibility study in January.

In all, Youga’s five known deposits — A2 Main, A2 East, A2 West zones 1, 2, and 3, are home to measured resources totalling 4.1 million tonnes grading 3.2 grams gold; indicated resources total 5.2 million tonnes at 2.3 grams. Another 1.7 million tonnes of inferred resources average 1.7 grams gold. The estimates employ a cutoff grade of 1 gram gold.

Etruscan recently broke ground for a million-tonne-per-year mine at Youga. The operation is based upon a feasibility study that focused on just the A2 Main, A2 East and A2 West 1 zones (T.N.M., May 9-15/05).

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