LONDON, UNITED KINGDOM--(Marketwire - April 9, 2010) - Cluff Gold plc ("Cluff Gold" or the "Company") (TSX:CFG)(AIM:CLF) -
Cluff Gold the West African focused gold mining company, announces encouraging assay results from its drilling programme at Baomahun, its flagship gold project located in Sierra Leone.
Highlights:
Baomahun gold project, Sierra Leone: (100% ownership)
Douglas Chikohora, Technical Director of Cluff Gold commented:
"We are delighted with the discovery of the new mineralisation zone, which demonstrates the success of the drilling programme and the skill of the operational team in Sierra Leone. We expect to gather further evidence of additional high grade gold near surface and look to include these results in the upcoming resource update.
With the continued drilling programme, the interpretation from the VTEM airborne survey and the near completed Scoping Study; we expect the Baomahun gold project to further demonstrate increased resources, which will add further value to the project."
Drilling programme
The current drilling programme is focused on improving the continuity and grade, in all directions, of the existing ore body and is planned to continue until the rainy season starts in July. A total of some 5,000 metres of diamond core drilling in 13 holes has been completed in 2010 to date. Samples are being analysed on an ongoing basis and assay results have been received for the first five holes and more assay results are expected during the month of April. Early indications are that this programme will improve the overall resource base for the project.
During the current drilling programme DDH 314 intersected a new, near surface, mineralised zone located close to the current boundary of the proposed open pit. In addition, holes DDH 307 and 308 have added to the known extent of mineralisation in the Western Zone. Initial indications are that the new zone and the additional extensions to known mineralisation have the potential to materially increase the existing known resources at Baomahun. Due to the impact the additional mineralised zone is expected to have on the Scoping Study, it has been decided that a resource update will be prepared including this new mineralised zone, which is expected to be released in Q2 2010.
Below is a table summarising the significant mineralised intersections in the drill holes for which final assays have been received to date, which includes both the new mineralised zone and the deeper mineralisation which the programmes were initially programmed to intersect.
The true thickness of the mineralisation may vary from 40% to 70% of the intersected widths.
Drill cores for assaying were taken at a maximum of one metre intervals and were cut with a diamond saw. One half of the core was placed in sealed bags and sent to the Company's sample preparation facility at Baomahun, Sierra Leone. The core samples were then crushed to minus 4mm and split, with approximately 1.5kgs of sample pulverised down to 95% passing 106 microns. Approximately 120 grams of the pulverised sample were then shipped to the SGS Laboratory (which is independent of the Company) in Siguiri, Guinea, where the samples were analysed for gold by fire assay using a 50g charge. As part of the Company's QA/QC procedures, internationally recognised standards and blanks were inserted into the sample batches.
Scoping and feasibility study work
The majority of work for the Scoping Study has been completed, which is expected to indicate that the Company will be able to profitably recover more than 1.1million ounces of gold from the existing resource over an eight to ten year mine life. Prior to the finalisation of the study an updated resource model will be completed incorporating the new mineralised zone.
Work for the final feasibility study is ongoing, with environmental base line studies planned to start in Q2 2010. Other long lead items are also being considered, and it is not expected that the change to the timing of the Scoping Study will have any significant effect on the timing of the feasibility study.
Other Exploration
In addition to the ongoing work relating to the resource area, the Company is mobilising a geophysical company, Geotech Airborne Limited, to undertake a versatile time-domain electromagnetic (VTEM) survey covering the remainder of the 12km prospective belt. The survey will be undertaken in April 2010, with results anticipated to be available in May 2010. It is planned to cover a total of 1,600 line kilometres with a line spacing of 75 metres.
The survey will delineate areas of the belt with both high magnetism and conductivity, which is often associated with high levels of sulphide mineralisation. Such sulphide mineralisation is associated with the high grade gold delineated to date at the Baomahun project. Accordingly it is expected that this survey will generate drill ready targets for investigation across the remainder of the licence area.
About Cluff Gold
Cluff Gold is focused on the identification, acquisition and development of gold deposits in West Africa that are amenable to open-pit mining and low cost production techniques. The Company has assembled a portfolio of mineral interests at various stages of development in Côte d'Ivoire, Burkina Faso and Sierra Leone. Cluff Gold progressed from being an explorer to a producer in Q1 2008 and is expected to produce a total of 100,000 ounces of gold in 2010 from its Angovia Gold Mine in Côte d'Ivoire and its Kalsaka Gold Mine in Burkina Faso. Cluff Gold is actively evaluating known satellite deposits to expand the resource base at both mines. The Company is also pushing forward with the pre-feasibility study at its wholly-owned Baomahun project in Sierra Leone where a measured and indicated resource estimated to contain over 1.0 million ounces of gold, in accordance with NI 43-101, has been announced to date (380,000ozs at 3.0g/t measured; 723,000ozs at 2.8 g/t indicated; plus an additional 957,000ozs at 3.2g/t inferred).
This News Release includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, the positioning of the Company for future success, statements regarding potential future production at Angovia and Kalsaka, exploration and drilling results at Baomahun, and future capital plans and objectives of Cluff Gold, are forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Cluff Gold's expectations include, among others, risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined as well as future price of gold. Although Cluff Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cluff Gold does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.
A technical report prepared by SRK Consulting (UK) Limited entitled "Technical Review of the Baomahun Gold Exploration Project, Sierra Leone" was filed on 17 February 2009 at www.sedar.com.
Douglas D Chikohora has reviewed and approved the information contained within this announcement. Mr Chikohora (MSc., MIMMM., CEng) is the Technical Director of the Company.
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of Cluff Gold, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Cluff Gold, they will be deemed to be a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of Cluff Gold by Cluff Gold, or by the potential offerors, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.
A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at https://www.thetakeoverpanel.org.uk.
"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an 'interest' by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE.