"It is certain that they (rebels) have new equipment which they did not before, such as rocket launchers, mortars and machine guns," a Senegalese military official told AFP.

"These are weapons that are generally held by traditional armies," the source added, without specifying the source of such equipment.

Local newspaper Le Quotidien ran a headline Tuesday saying: "Guerrilla's firepower worrying army chief."

"The weaponry used by the rebels in Casamance has raised questions within the military hierarchy. It has been discovered that the guerrillas are using heavy artillery and are shelling in the same way as the army," the newspaper said.

A cache of Iranian arms recently discovered in Nigeria on their way to Gambia, raised fears in Senegal that they were destined for fighters from the the MFDC (Movement of Democratic Forces of Casamance).

The shipment triggered diplomatic tensions between Tehran, Dakar and Banjul and Senegal withdrew its ambassador from Tehran after concerns "these weapons could end up in Senegal, in the hands of fighters who do not want peace."

The Senegalese army said Tuesday it was carrying out search operations in the Casamance a day after losing seven soldiers during a battle with presumed seperatist rebels.

Sporadic outbreaks of violence persist in Casamance despite a peace accord signed in 2004.

Security forces fear the MFDC is preparing to step up its operations in the coming days as it marks the anniversary of the outbreak of the rebellion in December 1982.

A rich agricultural region with lush forests and white stretches of beach, development has been stunted in the Casamance area -- a strip of land cut off from the rest of Senegal by Gambia.

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