Etruscan reports first quarter results



    HALIFAX, April 13 /CNW/ - Etruscan Resources Inc. (EET.TSX) has reported
its financial and operating results for the three months ended February 28,
2007. The Q1 2007 Financial Report is available on the SEDAR website at
www.sedar.com or at the Company's website at www.etruscan.com. All figures are
reported in Canadian dollars unless otherwise noted.

    
    Highlights from first quarter 2007 operations include:

    - Development of the Youga Gold Project in Burkina Faso continued
      toward a June 2007 commencement of commissioning

    - Drilling at the Agbaou Gold Project in Côte d'Ivoire intersected
      significant mineralization on the southernmost drill fence that
      indicates the deposit remains open to the south

    - Additional high grade drill results reported from the Finkolo Gold
      Project in Mali South

    - Drilling results over the northwestern extension of the Diba gold
      anomaly located in Mali West confirm that the mineralized system
      extends into bedrock along the entire 2.5 kilometer strike length
      of the anomaly

    - A new company was formed to hold the diamond assets located in the
      Ventersdorp Alluvial Diamond District, South Africa

    Youga Gold Project, Burkina Faso

    Development of Etruscan's 90% owned Youga Gold Project in Burkina Faso
continued during the first quarter with commissioning of the operation to
commence during June 2007. As at February 28, 2007 approximately 70% of the
budgeted capital expenditure of US$47 million had been committed. Site
preparation and concrete work is well advanced and the installation of the
seven CIL tanks is complete. Piping for the 11 kilometer raw water line is on
site and nearing completion. The grinding mill, which was shipped from Canada,
was delivered to site in December and the 460 m3 concrete foundation has
recently been completed. Cement, rebar, sand and aggregate are being sourced
and purchased locally in Burkina Faso. The structural steel for the mill is
being fabricated in Morocco with two shipments having now arrived on site. The
tailings dam design has been completed and the area cleared in preparation for
the placement of the tailings wall. The mining and drill/blast contractors
have mobilized to site and mining has begun. The mine camp, main office,
medical complex, plant stores and work shop buildings are well advanced.
Presently there are approximately 250 construction personnel on site.
    The Youga Gold Project will be comprised of open pit mining of five pits
over a 6.6 year mine life. The mineable reserves as estimated by RSG Global of
Perth, Australia in accordance with National Instrument 43-101 are 6.6 million
tonnes at 2.7 grams per tonne. Etruscan continues to evaluate other
near-surface mineralized zones within the boundaries of the Youga Mining
Permit that could extend the mine life.
    Expenditures during the first quarter aggregated $9.9 million with the
total investment to date in the Youga Gold Project and the surrounding
exploration permits being $50.4 million.

    Agbaou Gold Project, Côte d'Ivoire

    Etruscan is presently completing a 12,000 meter drill program at the
Agbaou Gold Project, located in Côte d'Ivoire. This program was initiated
during the third quarter of 2006 and the results will be used to generate an
updated resource and reserve estimation for the open pittable portion of the
deposit. In January 2007, drilling intersected significant mineralization on
the southernmost drill fence that indicates the deposit remains open to the
south where hole ADD257 intersected 8 meters of 3.2 g/t gold and hole ADD258
intersected 14.8 meters of 2.1 g/t gold. A number of deep intercepts indicate
the deposit is open at depth including 13.4 meters at 13.7 g/t (which includes
3.1 meters at 31.3 g/t) at a vertical depth of 205 meters and 7.4 meters at
5.7 g/t (which includes 1 meter at 30.8 g/t) at a vertical depth of
275 meters. Other assay results received during the first quarter include the
following:

    - 17.3 meters of 5.3 g/t (including 0.9 meters at 40.0 g/t)
    - 8.6 meters of 3.6 g/t (including 0.8 meters at 26.3 g/t)
    - 6.4 meters of 9.6 g/t (including 1.8 meter at 25.8 g/t)
    - 6.6 meters of 4.7 g/t (including 0.9 meters at 27.0 g/t)
    - 8.0 meters of 3.2 g/t (including 2.0 meters at 7.7 g/t)
    - 14.1 meters of 2.6 g/t (including 2.2 meters at 5.8 g/t)
    - 12.0 meters of 2.2 g/t (including 6.0 meters at 4.1 g/t)

    The Company is targeting to complete a feasibility study for the Agbaou
Project by the end of 2007 with production targeted for early 2009.
    Expenditures during the first quarter aggregated $0.7 million with the
total investment to date being $5.1 million.

    Finkolo Gold Project, Mali

    Work continued during the first quarter on Etruscan's most advanced
project in Mali, the Finkolo Gold Project, located on the Syama gold belt. The
Finkolo permit is contiguous with the Syama holdings of Resolute Mining Ltd.
which hosts the 6.4 million ounce Syama gold deposit. Resolute is the operator
on the permit having earned a 60% interest in Finkolo as a result of work
carried out in 2006. The main Tabakoroni Zone has now been tested over a
strike length of 1.7 kilometers with the potential to extend to more than two
kilometers. Resolute recently completed a 61-hole (5,600 meters) reverse
circulation drill program that confirmed continuity of mineralization within
the main Tabakoroni Zone. Assay results received during the first quarter
include the following:

    - 10 meters of 201.1 g/t gold (including 2 meters of 982.3 g/t gold)
    - 42 meters of 4.3 g/t gold (including 1 meter of 44.2 g/t gold and
      1 meter of 20.1 g/t gold)
    - 9 meters of 4.3 g/t gold (including 1 meter of 24.45 g/t gold)
    - 5 meters of 11.2 g/t gold (including 1 meter of 43.9 g/t gold)

    Resolute is undertaking a rotary air blast (RAB) drilling program of 6,050
meters that will test for strike extensions of the Tabakoroni Zone and the
Porphyry Zone. A geophysical program will also be carried out over the
Porphyry Zone following up on the successful geophysical program conducted
over the Tabakoroni Zone.

    Diba Gold Project, Mali

    In Mali West the Company continued with its aggressive exploration program
at the Diba Gold Project. The Diba gold discovery covers an area measuring 2.5
kilometers in length and 300-500 meters in width. As of February 28 a total of
7,412 meters of diamond drilling had been completed in 55 holes, together with
3,241 meters of reverse circulation drilling in 33 holes mainly in the
southern extension of the Diba anomaly, with a few widely spaced holes along
the Northwest extension. The results from continued drilling on the southern
extension of the Diba gold anomaly show the deposit to be open in all
directions and at depth. RAB drilling results over the northwestern extension
of the Diba anomaly confirm that the mineralized system extends into bedrock
along the entire 2.5 kilometer strike length of the anomaly. Diamond drilling
is continuing to test the strike and depth extensions in the southern zone.
Assay results received include the following:

    - 40 meters of 1.3 g/t (including 5 meters at 2.9 g/t)
    - 17 meters of 2.6 g/t (including 1 meter at 27.9 g/t)
    - 7 meters of 9.8 g/t (including 1 meter at 33.4 g/t)
    - 10 meters of 3.9 g/t (including 1 meter at 28.5 g/t)
    - 38 meters of 1.9 g/t (including 6 meters at 5.9 g/t)
    - 1 meter of 900.5 g/t

    A detailed ground geophysical survey across the entire Diba anomaly area
was initiated during the first quarter. This program is comprised of a
gradient array induced polarization (IP) survey at 100 meter line spacing
followed up with high resolution IP and resistivity surveys over selected
targets. A detailed total field magnetic survey on 50 meter line spacing was
also initiated.
    Expenditures on the Company's Mali West property holdings, including Diba,
aggregated $1.3 million during the first quarter with the total investment to
date being $3.3 million.

    Alluvial Diamond Properties, South Africa

    Also during the first quarter the Company moved forward with the
restructuring of the ownership interests in its subsidiary company Etruscan
Diamonds (Pty) Limited. This company holds controlling interest in properties
covering in excess of 800 km2 in the Ventersdorp Alluvial Diamond District. A
new company, Etruscan Diamonds Limited ("EDL") was formed and Etruscan
Resources Inc. and Mountain Lake Resources Inc., together with other third
parties, transferred all of their interests in Etruscan Diamonds (Pty) Ltd. to
EDL in exchange for shares of EDL. In March 2007, EDL completed an $11 million
private placement financing. The proceeds of the private placement will be
used primarily to undertake a pre-feasibility study on the Hartbeestlaagte
diamond property. Upon successful completion of the pre-feasibility study
Etruscan Diamonds Limited intends to undertake a public offering and apply for
a stock exchange listing to advance the Hartbeestlaagte property into
production. Etruscan Resources Inc. continues to effectively own 51% of the
diamond assets after completion of the restructuring and financing.
    The restructuring was undertaken to realize the value of the diamond
assets and to allow the new company to more aggressively pursue the
exploration and development of the diamond assets while Etruscan Resources
Inc. focuses on the exploration and development of its gold properties in West
Africa.

    Operating Results

    The net loss for the first quarter was $1.3 million ($0.013 per share)
compared to a loss of $3.5 million ($0.045 per share) for the first quarter of
2006. The prior period loss included a non-cash expense of $1.5 million (2007
- nil) related to stock-based compensation and a $0.9 million loss (2007 -
nil) from the Company's equity investment in African GeoMin.
    To comply with new accounting recommendations the Company has recorded its
available-for-sale marketable securities at fair value resulting in a
cumulative increase of $3.1 million to the recorded value of this asset.
    The Company's cash position as at February 28, 2007 was $3.1 million. The
Company's working capital position was enhanced subsequent to quarter end with
the completion of draw downs under the Youga Project debt facility aggregating
US$15 million together with the receipt of $6 million from the exercise of
warrants and options.
    The financial statements have been prepared in accordance with Canadian
generally accepted accounting principles.
    K. Kirk Woodman P.Geo., Etruscan's Chief Project Geologist, is the
Qualified Person overseeing Etruscan's exploration programs in West Africa and
Robert Harris, P.Eng., Vice President of Operations of Etruscan, is the
Qualified Person overseeing production and development in West Africa and
South Africa.

    About Etruscan Resources Inc.

    Etruscan Resources Inc. is a gold focused Canadian junior mining company
with dominant land positions in district scale gold belts covering more than
10,000 sq. km in West Africa. Its principal properties include the Youga Gold
Project in Burkina Faso currently under development and scheduled for
commissioning in June 2007 (Press release dated February 27, 2007), the Agbaou
Gold Project in Cote d'Ivoire with an 11,000 metre diamond drilling program in
progress (Press release dated January 11, 2007), the Diba Gold Project in Mali
with a comprehensive diamond and reverse circulation drilling program underway
(Press release dated January 8, 2007), the Finkolo Gold Project in Mali where
a 5,000 meter diamond drilling program is being carried out (Press release
dated March 7, 2007) and the Banfora Gold Belt in Burkina Faso with eight
major gold targets identified and where a single sample auger drilling program
began in March 2007 (Press release dated November 27, 2006). Etruscan also has
a 51% interest in Etruscan Diamonds Limited which has a dominant land position
in the Ventersdorp Diamond District located in South Africa. (Press release
dated March 14, 2007). The common shares of Etruscan are traded on The TSX
Exchange under the symbol "EET". More extensive information on Etruscan can be
found on its home page at http://www.etruscan.com.

    This press release may contain certain forward-looking statements which
involve known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the Company to be
materially different from any future results, performance or achievements
expressed or implied by such forward-looking statements. Forward-looking
statements may include statements regarding exploration results and budgets,
mineral reserve and resource estimates, work programs, capital expenditures,
mine operating costs, production targets and timetables, future commercial
production, strategic plans, market price of precious metals or other
statements that are not statements of fact. Although the Company believes the
expectations reflected in such forward-looking statements are reasonable, it
can give no assurance that such expectations will prove to have been correct.
Various factors that may affect future results include, but are not limited
to: fluctuations in market prices of precious metals; foreign currency
exchange fluctuations; risks relating to mining exploration and development
including reserve estimation and costs and timing of commercial production;
requirements for additional financing; political and regulatory risks, and
other risks and uncertainties described in the Company's annual information
form filed with the Canadian Securities regulators on SEDAR (www.sedar.com).
Accordingly, readers should not place undue reliance on forward-looking
statements.

    NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS
    RELEASE
    




For further information:

For further information: from Etruscan contact: Richard Gordon, Investor
Relations, rgordon@etruscan.com, (877) 465-3674, Fax (902) 832-6702; Tony
Hayes, thayes@etruscan.com, (866) 638-3338, Fax (905) 468-8407

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ETRUSCAN RESOURCES INC.

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