HALIFAX, Oct. 6 /CNW/ - Etruscan Resources Inc. (EET.TSX) reported today that its Youga Gold Mine located in Burkina Faso, West Africa is now receiving grid electrical power from the Société Nationale d'Electricité du Burkina (SONABEL) in partnership with the Ghanaian power utility, the Volta River Authority (VRA). The connection to the northern grid in Ghana provides the mine with a stable, lower cost power supply and places the existing diesel generator power supply units into the backup role for which they were designed.
The initial unit rate for grid power is US$0.13/kwh compared to US$0.33/kwh for the diesel generated power. This represents a substantial operating cost savings ranging from US$250,000 to US$350,000 per month when compared to the on-site diesel generated power supply previously used at the mine.
Stephen Stine, Chief Operating Officer of Etruscan, stated:
"Connection to grid power is a significant operational improvement to the
mine which ensures a more reliable, lower cost power supply. The on-site
diesel generators were designed to be a backup power supply source, not
the primary power supply. Consequently, reliability had decreased over
time resulting in disruptions to the operations. Etruscan's operational
team can focus now on continuing to improve gold production without the
distraction of an unreliable power supply."
Monthly production at the Youga Gold Mine continues to perform, with September production of 6,600 ounces from 75,011 tonnes of ore. This is compared to 6,526 ounces produced in August, 6,093 ounces in July and 5,127 ounces in June. The Youga Mine is continuing to work towards achieving a minimum monthly production of 7,000 ounces and plant throughput of 80,000 tonnes.
Stephen Stine P.E., the Chief Operating Officer of Etruscan, is the Qualified Person overseeing production at the Youga Gold Mine, and has reviewed and approved this press release.
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 square kilometers in West Africa. Its principal mine development projects include the Youga Gold Project in Burkina Faso, the Agbaou Gold Project in Côte d'Ivoire and the Finkolo Gold Project in Mali. Advanced and early stage exploration projects are on-going in Burkina Faso, Mali, Côte d'Ivoire, Ghana and Namibia. Etruscan also has a 47.4% interest in Etruscan Diamonds Limited which has a dominant land position in the Ventersdorp Diamond District located in South Africa. 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
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
SOURCE ETRUSCAN RESOURCES INC.
For further information: For further information: Richard Gordon, Investor Relations, Etruscan, (877) 465-3674, Fax (902) 832-6702, firstname.lastname@example.org