Etruscan lures Anglo to Tiawa

Having parted ways with Placer Dome (PDG-T), junior Etruscan Resources (EET-T) has enlisted South African-based mining house Anglo American to help develop its Tiawa gold concession in western Niger.

The recently signed agreement, which is subject to due diligence and regulatory approval, will see Anglo earn half of Etruscan’s 90% interest in the 1,241-sq.-km property. The government of Niger holds a 10% carried interest.

Initially, Anglo must pay Etruscan US$5 million in cash and acquire 1.2 million Etruscan shares at US$4 each. To complete its earn-in, it must then fund and complete a bankable feasibility study on the property’s Samira gold deposit and arrange for project financing, though actual funding will be equally shared between the two companies.

The deal also gives Anglo the right to participate in all of Etruscan’s African properties, and to manage any joint ventures that would be created as a result.

Previously, Etruscan had optioned Tiawa to Placer Dome. Under that agreement, Placer had the right to earn 51% of Etruscan’s interest for US$60 million, one-sixth of which had to be spent on exploration. However, Placer bowed out of the deal, stating that the project no longer fit with its international exploration strategy. To compensate Etruscan, the major must pay US$1 million and retain 4.17 million Etruscan shares for a minimum of one year unless a purchaser is found in the interim.

In 1997, Placer completed 17,023 metres of definition drilling on the Samira deposit, adding to the 10,000 metres of exploration holes completed by Etruscan in 1996. A resource of 27.8 million tonnes averaging 2.02 grams gold per tonne was outlined over a strike length of 800 metres and down to a vertical depth of 200 metres.

Twelve deep holes drilled in late 1997 showed that, over 300 metres of the deposit’s strike length, mineralization extended to a vertical depth of 250 metres. These holes also indicated that the Main zone begins to flatten from its initial steep northeasterly dip at about 200 metres of vertical depth.

Gold mineralization is associated with the Samira horizon, a sedimentary unit consisting of an upper sequence of alternating argillites, siltstones and mudstones, with minor intercalated greywackes, and a lower sequence of alternating graphitic siltstones, argillites, wackes and greywackes.

In related news, Etruscan has made a takeover offer for Channel Resources (CHU-T) in which 4.5 Channel shares can be exchanged for an Etruscan share.

The company has already signed a lock-up agreement with Channel’s major shareholder, Viceroy Resource (VOY-T), to acquire its 27% interest.

Channel holds 10 gold permits covering 8,517 sq. km. in Burkina Faso. One of the properties, Bombore, is being explored as a joint venture with Solomon Resources (SRB-V), which has agreed to relinquish its interest to Etruscan, should it successfully take over Channel, in exchange for 1.07 million Etruscan shares and 534,760 warrants. The deal is subject to regulatory approval.