from EET Report to shareholders todayEtruscan Resources Incorporated
Diamond Development and Exploration
To October 2003, the Tirisano Diamond Mine has generated total revenue of $3.8 million, which has reduced the
deferred development costs of the mine. The expanded Tirisano Diamond Mine represents the first phase of
development for the Ventersdorp Group of properties. This operation is forecast to produce 27,600 carats of
gemstone quality diamonds each year for the next ten years. The Company’s objective is to optimize the mining and
processing methods of the diamondiferous gravels, to complete the final commissioning of the Diamond Plant
including its current expansion and achieve commercial production. The Company is continuing with exploration
including geophysical surveys and delineation drilling to increase the diamond resources on the Ventersdorp Group
of Properties.
Engineering and design studies for the construction of a second, much larger processing plant are underway that
would see the combined plant throughput increase to 2.7 million cubic meters per annum thereby increasing annual
diamond production to 78,000 carats. This phase of expansion is planned to take 12 months from the commencement
of construction. The Company is currently engaged in financing discussions with a number of potential lenders and
investors to allow it to complete the aggressive expansion plans.
Etruscan Resources Incorporated
Interim report to shareholders
For the period ended august 31,2003
The Samira Hill Gold Mine will produce an average of 100,000 ounces per year at an average cash cost of US$203
per ounce from the initial oxide and transition pits at Samira Hill and Libiri over a period of six years. The Project
IRR is 41% at a US$350 gold price. It is anticipated that as mining proceeds the depleted ounces will be replenished
from multiple smaller satellite deposits already identified and within easy trucking distance of the central milling
facility. With over 50 kilometers of favourable stratigraphy outlined on the permits and both the Samira Hill and
Libiri deposits open at depth, management continues to view this initial open pit mining operation as just the first
step in the long-term development of an emerging gold belt. Total resources currently stand at 2 million ounces in all
categories as determined by RSG Global.
Samira Hill will be in production September 2004
Finalizing the acquisition of the Agbaou Gold Project in Cote d’Ivoire has been delayed by the current political
environment. Etruscan has been selected by the Ministry of Mines and Energy as the successful applicant for
Agbaou, however, the formal granting of title requires the issuance of a decree signed by the President. Management
remains in close contact with the Ivorian Ministry of Mines and Energy and have been assured the issuance of the
decree is only a matter of process. Agbaou is viewed as a significant opportunity that will add immediate ounces to
Etruscan’s resource base and serve as a point of entry into Côte d'Ivoire, a mineral-rich country of over 322,000
square kilometers that is almost entirely underlain by the same prospective Archaean and Lower Proterozoic
(Birimian) formations that extend into Ghana, Mali and Burkina Faso. A total of 18,000 meters of drilling has been
completed at Agbaou. An independent resource estimate prepared in April 2000 by Resource Service Group (RSG)
reported the total indicated and inferred resource as 12.25 million tonnes at an average grade of 2.2 grams gold per
tonne, containing 847,000 ounces using a 1.0 grams per tonne cut-off or 1.1 million ounces using a 0.5 grams per
tonne cut-off. No other work has been carried out on the property since RSG generated its report. Etruscan has
conducted technical due diligence including re-sampling and re-assaying of selected drill core to verify grade. Upon
ratification of the permit Etruscan intends to aggressively advance this project through bankable feasibility study.
Exploration in Mali will start up again with priority being placed on completing a drilling program on the Finkolo
Permit before the end of the year. In June 2003, widely spaced drill holes intersected a new gold zone along the
eastern contact of a porphyry intrusion over down-the-hole widths of 18 to 36 meters with average grades of up to
2.42 grams per tonne gold. Individual samples assayed up to 8.30 grams per tonne gold. 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 kilometer 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. The Company is considering taking on a joint
venture partner at Finkolo to accelerate development.
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