MINING IN AFRICA SPECIAL — Etruscan upbeat on Koma Bangou

Following reverse-circulation (RC) drilling and trenching on the Koma Bangou gold project in Niger, Etruscan Enterprises (VSE) is optimistic about increasing reserves.

The 31,000 ft. of drilling and 9,500 ft. of trenching concentrated on the V7A and V1 structures, two of the seven known zones within the central deposit. This deposit hosts a geological reserve of 11.5 million tons averaging 0.087 oz. per ton, to a depth of 230 ft.

Etruscan’s partner in the venture is state-owned L’Office National des Resources Minieres (ONAREM).

Gold is found in quartz veins associated with sub-vertical, silicified shear zones which are hosted in Birimian rocks consisting of interbedded pyroclastic rocks, andesitic flows and graphitic schists.

It is hoped the drilling will enable the joint venture to be more definitive in its reserve calculations. Although only 3,000 assay results have been received from the 10,500 samples, an encouraging pattern of mineralization is emerging. Indications are that the mineralized zones widen, and that gold grades increase, with depth.

Exploration work was also performed outside the central zone, and this led to the discovery of a several-mile-long shear zone within a quartz tourmaline sandstone. Samples from the zone have assayed up to 1.73 oz. Based on the Central zone figures and limited assays from the new discovery, Etruscan believes the Koma Bangou property could potentially host more than 1 million oz.

Exploration plans call for Etruscan, the operator, to carry out an additional 8,000 ft. of RC drilling and 8,000 ft. of diamond drilling on the central deposit. Meanwhile, the new discovery will be subjected to geophysical and geochemical surveys, as well as 32,000 ft. of RC drilling.

Etruscan has also carried out preliminary metallurgical testing on ore from the Koma Bangou deposit. The work was carried out at NovaGold Resources’ (TSE) test facility in Nova Scotia, and results show that more than 90% of the gold can be recovered using NovaGold’s indoor vat leaching process. The company has budgeted $2.2 million for geological programs and intends to deliver a bankable feasibility in 1995. To help finance the work, Etruscan completed a private placement with Echo Bay Mines (TSE) for proceeds of $500,000. The latter bought more than 192,000 treasury common shares valued at $2.62 per share.

If all goes well, Etruscan will deliver a feasibility study on Koma Bangou by June, 1996. Upon approval, a Nigerien mining company would be formed, which would be owned 67% by Etruscan, 23% by ONAREM and 10% by the Nigerien government.