Etruscan's Youga Mine projected to be cash positive in August


    HALIFAX, Aug. 20 /CNW/ - Etruscan Resources Inc. (EET.TSX) reported today
that its Youga Gold Mine located in Burkina Faso, West Africa is projected to
achieve positive cash flow from operations for the month of August on
production of 5,600 ounces of gold. Production continued to ramp up during the
month of July, with the mill tonnage throughput reaching 82% of design and
gold recoveries in excess of 94%. August is showing a steady improvement in
the amount of gold poured, with over 2,700 ounces poured in the first half of
the month. The production statistics follow:

                             March to June        July    August 1-17
                             -------------        ----    -----------
         Tonnes Milled             215,836      68,032         33,928
         Head Grade (g/t)             1.79        2.23           2.26
         Gold Recovered(*)          11,714       4,620          2,345
         Gold Poured (oz)            9,917       3,457          2,738
         (*) based on mill feed and tailings assays
         Note: Production numbers are preliminary and are subject to
         final adjustments

    The difference between the gold recovered in the plant and the amount
poured is significant and this is largely due to gravity gold lockup in the
plant and gold held in inventory (loaded carbon and leach solution). The
grinding mill liners were replaced in August and this is expected to unlock a
significant portion of the gold for recovery later in the month. At design
capacity, the plant will treat on average 83,000 tonnes per month and produce
6,700 ounces of gold on a monthly basis.
    Bob Harris, Vice President Operations of Etruscan Resources Inc. stated:

    "I am pleased to report that the Youga operation continues to ramp up and
    stabilize. The CIL circuit is now operating at design efficiency and the
    optimization of the gravity circuit is the final major area of focus.
    There has been greater than anticipated lock up of gold in the milling
    circuit as a result of inefficiencies in the gravity circuit. With recent
    improvements to the circuit, we are expecting that the excess circulating
    gold will be recovered from the gravity circuit and that our poured
    ounces will reach target in August."

    Mining is continuing from two pits: A2 Main and A2 West Zone 1. The
higher grade and lower strip ratio of the West Pit will allow for a continued
steady improvement in gold production over the coming months.
    The Youga Gold Project is comprised of open pit mining from five pits
with the ore being processed though a conventional CIL/gravity plant having a
design capacity of one million tonnes per annum. Mineable reserves are
6.6 million tonnes with an average grade of 2.7 grams per tonne containing
580,000 ounces of gold. The project benefits from a year-round water supply
from a nearby major river system (the White Volta) and access to grid power
supplied via the northern grid of the Volta River Authority in Ghana is
forecast for fourth quarter 2008. The current diesel powered generator system
will then act as a back-up power plant to ensure constant power to the site.
The Youga facility has been designed for maximum operating availability and in
particular, the mill drive system was supplied new with a second new drive
train (motor and gearbox) being stocked on site as a spare.
    Etruscan Resources Inc. also announced today that it has completed the
issuance of 509,500 warrants at a price of CDN $0.28 per warrant for gross
proceeds to Etruscan of CDN $134,100.40, pursuant to the exercise by CIBC
World Markets Inc., Canaccord Capital Corporation and Raymond James Ltd. (the
"Underwriters") of their over-allotment option. Each warrant entitles the
holder to purchase one common share of Etruscan until August 6, 2011 at an
exercise price of $1.85 per common share. The over- allotment option was
granted to the Underwriters to cover over-allotments under the terms of
Etruscan's recently completed public offering of units.
    Robert Harris, P.Eng., Vice President of Operations of Etruscan, is the
Qualified Person overseeing production and development in West Africa and
South Africa and has reviewed and approved this press release.

    The securities referenced by this news release have not been registered
under the United States Securities Act of 1933, as amended, and may not be
offered or sold in the United States without registration or an applicable
exemption from registration requirements. This news release does not
constitute an offer to sell or the solicitation of an offer to buy common
shares of Etruscan Resources Inc. in any jurisdiction in which such offer,
solicitation or sale would be unlawful.

    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
13,000 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 (press release dated February 21, 2008), and the
Finkolo Gold Project in Mali (press release dated July 2, 2008). Advanced and
early stage exploration projects are on-going in Burkina Faso, Mali, Côte
d'Ivoire, Ghana (press release dated June 10, 2008) and Namibia (press release
dated June 19, 2008). See press release dated May 6, 2008 for a comprehensive
update of explorations projects. Etruscan also has a 52.1% interest in
Etruscan Diamonds Limited which has a dominant land position in the
Ventersdorp Diamond District located in South Africa. (press release dated
June 13, 2008). 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

    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 (
Accordingly, readers should not place undue reliance on forward-looking


For further information:

For further information: Richard Gordon, Investor Relations, (877)
465-3674, Fax (902) 832-6702,

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