Ventersdorp study under way

In preparation for their proposed merger, Etruscan Resources (EET-T) and Mountain Lake Resources (MOA-V) have initiated a prefeasibility study at the latter’s Ventersdorp diamond project in South Africa.

The companies are evaluating the possibility of processing diamond-bearing alluvial gravels spread among deposits measuring up to 1,000 metres wide and more than 12 km long. Historical production reportedly exceeded 50,000 carats, with some stones weighing up to 19 carats.

The study, which will be aided by South African and Australian consultants, continues a technical due diligence review that has included the extraction of a 5,000-tonne bulk sample. Results from that and other preliminary work are expected by February, when shareholders vote on the merger.

Etruscan and Mountain Lake propose to exchange one share of the former for every two shares of the latter. The exchange would give Mountain Lake shareholders 16% of Etruscan’s resulting equity.

In addition to Ventersdorp, Mountain Lake owns: the CK gold property in Wyoming; the Canagau base-metal property in Ontario, which is being optioned to Falconbridge (FL-T); and the Goodwin base metal property in New Brunswick. The junior also has an option to acquire a half-interest in Noranda‘s (NOR-T) Valentine Lake gold project in Newfoundland.

Among Etruscan’s assets are the adjoining Tiawa and Saoura gold permits in Niger. There, equal partner Semafo (SMF-T) is financing the development of the Samira Hill gold deposit.

Production is scheduled to begin by mid-year, following which 6,000 tonnes of ore would be mined daily over the next six years. A total of 130,000 oz. are to be produced in the first three years, and 70,000-80,000 oz. in the following years.

Etruscan and Semafo each hold a 40% interest in the permits, with the remainder held by the government of Niger.