Youga drilling firms up resource (June 24, 2004)

Drilling has proved that the gold deposits at Etruscan Resources‘ (EET-T) Youga property in Burkina Faso are bigger and richer than previously thought.

Infill drilling of the A2 main deposit (22 holes) resulted in definition of the centre of the deposit to a 25-by-25 metre-density. Fifteen holes contained intercepts grading from 5.2-21.8 grams gold over widths of 4.1-51.9 metres. Three of these holes intersected 21.2-21.8 grams gold over 6.4-7.4 metres. The hole with the lowest assays intersected 7 metres with an average grade of 1.8 grams gold per tonne.

The A2 main deposit outcrops at surface, trends north and plunges to the north at about 30. A high grade zone located along the hanging wall contact is steeply dipping. Gold mineralization is associated with strongly silicified, fractured arkose intersected locally by quartz stockwork. Visible gold is common in high-grade zones.

The deposit was found to be continuous where it plunges to the north. A gold grade of 2 grams per tonne over 50 metres was intersected at a downhole depth of 146.6 metres.

Seven holes tested the northwestern zone situated near the northwestern corner of the A2 main. The quartz stockwork and veinlets in the area strike northwest. Four holes contained intercepts that graded from 6.7-10.7 grams gold per tonne over widths of 3.4-7.8 metres. One hole intersected 1.9 grams gold over 10.5 metres. The zone extends for at least 150 metres.

The southern extension of the A2 main deposit was tested with 15 holes. The drilling extended the deposit 100 metres further to the south along strike. The highest grades intersected in one hole were: 35.4 metres grading 5.7 grams gold that included 11.6 grams gold over 11 metres. Ten other holes contained intercepts that graded 1.3-6.7 grams gold over widths of 5.9-33.5 metres. One hole failed to intersect significant gold.

Eight holes tested the A2 east deposit situated 400 metres to the east of the A2 main deposit. These holes tested the deposit over a 250-metre strike length and two holes drilled 200 metres to the east of the A2 main intersected grades up to 2.9 grams gold per tonne over 6.8 metres. Don Burton, Etruscan’s vice president of exploration, commented: “With more detailed drilling we may be able to link the A2 main and east deposits.”

The A2 west deposit, 2.3-km southwest of the A2 main deposit, is 70 metres wide and up to 20 metres thick at its west end, plunging gently to the east for at least 300 metres. To the east the zone dips steeply north and extends at least 300 metres. Diamond drilling resulted in high grade intercepts in nine holes from 4.96-8.95 grams gold per tonne over widths of 5.8-24.7 metres intersected primarily from surface to a maximum depth of about 30 metres downhole. Fifteen other holes intersected 1-5.2 grams gold over widths of 1-23.5 metres. Trenching and reverse circulation drilling also tested this zone.

Cayman Burkina Mines, a wholly-owned subsidiary of Etruscan, owns a 90% interest in Burkina Mining (the government of Burkina Faso holds 10%). Burkina Mining holds the permits required to mine the Youga deposits.