Etruscan Resources picks up new African properties

West African explorer Etruscan Resources (EET-T) is expanding its presence in that region by acquiring properties in Mali and Ivory Coast.

The Malian acquisition is the Djelimangara exploration permit in western Mali, a 220-sq.-km land package immediately south of the Sadiola Hill property of Iamgold (IMG-T) and AngloGold (AU-N). The property straddles the West Mali shear, a regional-scale structural break that hosts mines at Sadiola, Yatela to the north, and Tabakoto and Loulo to the south.

Barrick Gold (ABX-T) did some initial exploration at Djelimangara between 1995 and 1997, before exiting West African exploration. Soil surveys returned samples with gold concentrations as high as 2 grams per tonne; elevated gold concentrations can be spread over areas up to 2.5 km long.

In Ivory Coast, Etruscan has reached an agreement to buy the Ivorian assets of Australian company Diversified Mineral Resources. Etruscan concluded the deal with DMR’s receiver, Australian management firm Ferrier Hodgson. The price is $350,000 cash plus 2 million Etruscan shares.

The principal asset is an 88.4% interest in the Agbaou gold property, 200 km northwest of Abidjan.

The Agbaou gold deposit has an inferred resource of 12.3 million tonnes grading 2.2 grams per tonne, based on a 1-gram cutoff grade. The property, and the adjacent Hir exploration permit, make up an 850-sq.-km land package covering Proterozoic Birimian Series volcanic and sedimentary rocks.

Agbaou has a history of returning local high-grade gold values in drill holes, but DMR had concentrated on drilling off a large, low-grade tonnage. Etruscan believes it can put together a smaller, higher-grade resource on the deposit.

Hir, in which DMR had held an 88.4% interest, is the site of a historically mined high-grade quartz vein with gold values in the range of 3 to 8 grams per tonne. The asset sale also includes 88.4% interests in two other nearby permits, Loho and Sirasso.