News

August 26, 2008

Etruscan's Youga Gold Mine Offers A Good Snapshot Of How The Industry Stands At The Moment

By Rob Davies

Starting a mine up is when the money is supposed to stop flowing out of a company and start flowing in. Unfortunately, this year has seen quite a number of companies whose brand new mines have had commissioning delays which have then lead on to cash flow problems and a subsequent return to the market for a cash top-up. Etruscan Resources is one of these. However, Richard Gordon Etruscan’s investor relations man, gave Minews a good explanation of the reasons behind the company’s request earlier this month for C$12.5 million from the market.

Etruscan bought the Youga property in Burkina Faso for US$6.5 million, and, after a US$79 million construction programme, Youga was due to start production at the beginning of the year. But sometimes it pays to watch the competition. By keeping a close eye on neighbours NevSun and High River - companies that are also commissioning mines in Burkina Faso - Etruscan was quick to notice when both encountered start-up problems. Those problems called for a certain prudence on Etruscans part, and well...