From Article appeared in the Monday’s release of the
Resource Investor March 17, 2008-03-19
The
company is also on the path to becoming a mid-tier gold producer. Etruscan
expects its Youga mine in
|
|
|
|
“This
first gold pour at Youga is a major milestone on Etruscan's path to becoming a
mid-tier gold producer. The construction and operating teams at Youga have done
a tremendous job in getting the Youga Project to where it is today. Over the
coming months we will be ramping up to full production,” Gerald McConnell,
Etruscan’s president and CEO stated in a March 12th media release.
South
African Diamonds
Tirisano
yielded more than 1,220 carats at an overall grade of 2.67 carats per hundred
cubic metres in February. A total 1,311 carats sold at an average bid price
US$854 for US$727,000 in gross proceeds in an early March tender, well in excess
of the US$466 per carat projected value included in the Blue Gum Project’s NI
43-101 resource estimate, which was released February 1. February diamond sales
averaged more than US$750 per carat.
Etruscan
is also looking to expand vertically bringing it in line with recent regulatory
changes in
Blue
Gum is estimated to contain indicated resources of 20.5 million cubic metres and
inferred resources of 17 million cubic metres at grades ranging from 1.77 to
2.85 carats per hundred cubic metres, according to the company’s February NI
43-101 report, which was prepared by Explorations
Unlimited.
Etruscan
Diamonds is planning a public offering in order to finance further expansion
that will bring Blue Gum’s diamond production rate to 260,000 cubic metres or
gravel per month. A pre-feasibility study is expected to be completed in Q2.
West
African Gold
Etruscan
Resources is also producing gold. A first gold pour – a bar of approximately 100
ounces – took place at its 90%-owned Youga Mine in
Commercial
production – defined as 30 consecutive days of operation at 60% of designed
capacity – is scheduled for April, according to the company. Some 49,694 tonnes
of ore have been mined at Youga. Crushing, grinding and leach circuits are
nearly complete. An elution circuit that will extract gold from carbon-in-leach
(CIL) tanks is in its final stages of commissioning.
Youga’s
current reserves total 6.6 million tonnes at an average grade of 2.7 grams per
tonne containing 580,000 ounces of gold. The nearby
Updated
project economics incorporate a re-optimized mine plan based on a gold price of
US$525 per ounce, a hedged gold price of US$700 per ounce for 40% of production
(approximately 225,000 ounces), an unhedged gold price of US$850 per ounce for
60% of production (approximately 336,000 ounces), and a life-of-mine cash cost
of US$396. Youga’s forecast cash cost for fiscal 2008, including ramping up
operations, is US$490 per ounce.
If
costs come in as expected, management has locked in profits of US$233 to US$304
per ounce for 40% of Youga’s production through a zero-cost collar hedging
programme carried out by Noah’s Rule of Perth, Australia. The programme is was
put in place by purchasing 456,000 puts struck at US$629 per ounce and selling
246,000 calls struck at US$700.
Updated
project capital costs total US$75 million, and now include the addition of the
power plant, spare mill motor and gearbox, as well as pre-production, financing
and working capital costs. Total debt service, including interest of US$49.8
million, is to be paid off within the first four years.
Next on
the company’s agenda is bringing the Agbaou Gold Mine in