RSG 3.39% 30.5¢ resolute mining limited

syama looking more interesting

  1. 2,572 Posts.
    Resolute Mining Limited and Etruscan Resources Inc. (EET.TSX) have entered into an
    option and joint venture agreement granting Resolute the right to earn up to a 60%
    interest in Etruscan's interest in the Finkolo gold exploration permit located in Mali. The
    Finkolo permit adjoins the southern boundary of the Syama permits over which
    Resolute hold an option to acquire an 80% interest from Randgold Resources Limited.
    See attached figure.

    Concurrent with the execution of the option agreement, Resolute has agreed to
    complete a private placement in Etruscan for aggregate proceeds of US$500,000 at a
    subscription price of CDN$2.60 per common share. US$300,000 of the proceeds will
    be used to fund a drilling program on the Finkolo permit during the due diligence period.
    The private placement is subject to receipt of all necessary regulatory approvals.
    Under the terms of the option agreement, Resolute has until March 31, 2004 to carry
    out its due diligence investigation of the Finkolo permit and commit to the joint venture.
    During this period Etruscan has agreed to undertake a US$300,000 drilling program.
    Under the joint venture Resolute can earn a 50% interest in Etruscan's interest in the
    permit by contributing US$2,000,000 to expenditures on the permit prior to March 31,
    2006 with a minimum expenditure of US$1,000,000 before it can withdraw. Once
    Resolute has earned its 50% interest it will have the right to earn an additional 10%
    interest by either contributing a further US$1,000,000 to expenditures on the permit or
    completing a feasibility study within two years following its initial earn-in. If Resolute
    earns a 60% interest prior to completing a feasibility study then Resolute will fund
    Etruscan's share of the feasibility study preparation costs (40%) and Etruscan will repay
    Resolute from one half of Etruscan's production cash flow arising from any mining
    operation on the permit.

    Etruscan is mobilizing a drill to Finkolo in mid-November to undertake a 3,000 meter
    drilling program. The program will comprise a combination of reverse circulation and
    core drilling focused on exploring both the recently discovered Porphyry Target zone
    and the previously known mineralised zone at Tabakoroni. The main focus of the
    drilling program will be to determine the extent, grade and characteristics of the
    Porphyry Target. Selected holes will be core drilled to obtain fresh samples of the
    mineralised zone to determine the geological setting and controls on gold
    mineralization. Drilling will take approximately 3 weeks and results are expected in mid-December. The Etruscan drilling program and interpretations are being developed
    under the direction of Etruscan's qualified person David R. Duncan, P.Geo.
    The Finkolo Permit was originally held by BHP International as part of the Syama
    exploration lease. The permit is underlain by the same Birimian-age greenstone belt
    rocks which host all the major gold deposits of Mali including the 5.2 million ounce
    Syama deposit and the 5.6 million ounce Morila deposit. Sufficient work has been
    completed on Finkolo to confirm that the "Syama contact zone" is running across the
    entire permit for a distance of 22 kilometres. In 1989 BHP drilled a total of 3,630 meters
    in twenty-one (21) holes along a 1.5-kilometer segment of the Syama Sequence called
    the Tabakoroni zone. All holes encountered significant gold mineralization, either in
    broad disseminated zones assaying from 1-6 grams per tonne gold up to 33 meters in
    thickness, or in more discrete 1-3 meter thick high-grade zones assaying 15-40 grams
    per tonne gold. Some of the better intercepts included 5.73 grams per tonne gold over
    22.5 meters and 27.55 grams per tonne gold over 3 meters. In 1998 the permit was
    acquired by Barrick Gold who carried out a number of detailed geochemical surveys
    including 1,156 rotary air blast drill (RAB) samples over the Tabakoroni zone and 3,185
    surficial samples over the remainder of the permit. Barrick never drilled any of the
    targets. When Barrick closed its West African operations the property was returned to
    the Republic of Mali. The property was subsequently granted to Bagoe National
    Corporation SARL, a private Malian company in July 2001. In June 2002 Etruscan reached an agreement with Bagoe to acquire a 100% interest in
    the 319 km2permit. In December of 2002 Etruscan carried out a detailed geophysical survey using induced polarization techniques over the Tabakoroni zone which identified
    a number of coincident geophysical and gold geochemical anomalies. A
    reconnaissance air core drilling program was completed in June 2003 to test the
    various anomalies. The most significant result of this program was the discovery of a
    new mineralised zone associated with an intrusive porphyry immediately north and
    outside of the BHP drilled area.

    The air core drilling intersected disseminated gold along the eastern contact of the
    porphyry over down-the-hole widths of 18-36 meters with average grades of up to 2.42
    grams per tonne gold, and individual samples assaying up to 8.30 grams per tonne
    gold. The Porphyry Target zone has a potential strike length in excess of 3 kilometres.
    Immediately south of the porphyry a series of narrower zones returned intercepts of up
    to 14.35 grams per tonne gold over 3 meters. Within the main 1.5 kilometre long
    Tabakoroni zone, the best intersection returned 6.72 grams per tonne gold over 16.5
    meters which included 22.8 grams per tonne gold over 3 meters.
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