Etruscan upgrades gold resources at Finkolo joint venture in Mali

Tuesday, July 28, 2009 6:00 AM

HALIFAX, July 28 /CNW/ - Etruscan Resources Inc. (EET.TSX) reported that an updated resource estimation has been completed for the Tabakoroni Gold Deposit on the Finkolo Permit in southern Mali which provides a 60% increase in the measured and indicated resource classification. This represents a significant upgrade to the quality of the gold resource, with 610,000 ounces now classified as measured and indicated and 220,000 ounces as inferred, versus the previous report of January 7, 2008 which had 382,000 ounces classified as measured and indicated, and 364,000 ounces as inferred. At a 1 gram per tonne cutoff, the updated resource is now reported as 6.83 million tonnes of measured and indicated resource at 2.78 grams per tonne gold (610,000 ounces) and a further 3.13 million tonnes of inferred resource at 2.18 grams per tonne gold (220,000 ounces).

A detailed breakdown of the resource classification at varying cutoff grades is presented in Table 1. The resource estimate was prepared by Etruscan's joint venture partner Resolute Mining Limited who acts as operator, and has been reported to both JORC and 43-101 standards. A 43-101 compliant report on the Tabakoroni Resource Estimation will be filed on SEDAR within 45 days.

     TABLE 1 - Tabakaroni Resource Estimation as of July 7, 2009
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Cut-                                       Measured &
off      Measured         Indicated        Indicated          Inferred
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     Tonnes       Oz  Tonnes       Oz   Tonnes       Oz  Tonnes       Oz
g/t    (m)   g/t  (k)   (m)   g/t  (k)    (m)   g/t  (k)   (m)   g/t  (k)
-------------------------------------------------------------------------
0.50  3.29  2.29  242  6.82  2.03  445  10.11  2.11  687  6.73  1.39  301
0.70  2.87  2.54  234  5.77  2.29  425   8.64  2.37  659  4.77  1.39  264
0.90  2.50  2.80  225  4.88  2.56  402   7.38  2.64  627  3.57  2.03  233
1.00  2.33  2.93  220  4.50  2.70  390   6.83  2.78  610  3.13  2.18  220
1.10  2.18  3.06  214  4.14  2.84  378   6.32  2.92  593  2.77  2.33  208
1.20  2.04  3.20  209  3.82  2.98  366   5.85  3.06  575  2.46  2.48  196
1.50  1.67  3.61  193  3.02  3.42  332   4.68  3.49  525  1.77  2.92  166
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The updated resource estimate was based upon results from infill drilling
carried out on the Tabakoroni deposit over the past year. Highlights of this
drill program include:
- 43 meters at 7.0 g/t (including 3 meters at 26.7 g/t)
- 22 meters at 11.7 g/t (including 2 meters at 79.2 g/t)
- 19 meters at 8.8 g/t (including 1 meter at 106 g/t)
- 17 meters at 4.8 g/t
- 14 meters at 7.3 g/t (including 1 meter at 50.8 g/t)
- 12 meters at 9.4 g/t (including 3 meters at 25.6 g/t)
- 8 meters at 8.1 g/t
- 6 meters at 57.1 g/t (including 1 meter at 307 g/t)

Additional results are available in the attached Table 2.

Resolute holds a 60% interest in the Finkolo Joint Venture and is completing a mining feasibility study on the Tabakoroni deposit which is scheduled to be released in the fourth quarter of 2009. Metallurgical test work and additional work required on the sulphide ore to optimize the flotation recoveries is under way and the results should be available in the next quarter.

The Finkolo Permit is contiguous with Resolute's Syama Permit which hosts the 6 million ounce Syama gold deposit. Syama is in production and an important milestone was achieved at the mine in June of this year when the first gold was poured from its sulphide ore processing circuit. One of the options for treatment of ore from Tabakoroni will be to process it at the Syama plant. Under the terms of the joint venture agreement, Resolute must fund all costs of the joint venture until production of a feasibility study and Etruscan will reimburse Resolute from 50% of its share of future project cash flow.

Between January 2005 and May 2009 Resolute Mining Limited drilled 306 RC, RCD and diamond drill holes at the Tabakoroni project in Mali. Rock chip and core samples were sent to ALS Bamako (formerly Abilab) and SGS Morila laboratories for analysis by fire assay and screen fire assay techniques. Additionally 83 bulk RC samples were selected for a sampling study and analysed by Abilab Burkina SARL using bulk cyanide leach and screen fire assay techniques. All assay numbers are reported as un-cut and all intercepts are reported as drill width and are not to be interpreted as true widths. K.

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