High-grade core shapes up at Libiri

More encouraging results have been released from an ongoing drill program aimed at increasing the grade of the Libiri gold deposit in Niger.

Partners Etruscan Resources (EET-T) and Semafo (SMF-T) are in the midst of an 11,000-metre campaign aimed at expanding and proving up the known oxide resource in hopes of adding it to their already-developing Samira Hill deposit, 3 km to the northeast. The drilling is focused on a high-grade core, where 44 holes totalling 4,568 metres have been sunk to date. Highlights from the latest results include:

hole 40, which cut 10.7 metres grading 8.73 grams gold per tonne;

hole 38, which intersected 15.2 metres grading 5.29 grams;

hole 21, which averaged 4.3 grams over 5.2 metres; and

hole 33, which averaged 3.13 grams over 21.3 metres.

At last count, the Libiri deposit contained 11.7 million tonnes grading 2.07 grams per tonne. The calculation was carried out internally and is based on a 1-gram cutoff.

Mineralization is hosted by sedimentary rocks near the footwall contact with enclosing greenstones and is characterized by silicification with veining and grades similar to those found at Samira Hill. Geophysical surveying and auger drilling between the two have confirmed that both are part of the same sedimentary horizon. Another 8 km of prospective horizon were traced east of Libiri.

Samira Hill is scheduled to begin production in the fourth quarter. At full steam, the open-pit operation should yield 67,000 oz. gold annually at a cash operating cost of US$168 per oz. over a minimum mine life of six years.

Etruscan and Semafo each own a 45% interest in the project, with the remaining 10% held by the government of Niger. Each company holds its interest through African Geomin, a Niger-incorporated entity.