26th Jun 2009 07:00
Cluff Gold plc
Cluff Gold Delivers AGM Statement
London, England, June 26, 2009 - Cluff Gold plc (AIM: CLF; TSX: CFG) ("Cluff" or the "Company"), the West African focused gold mining company, announces that the Company's Annual General Meeting ("AGM") is to be held today at the offices of Maclay Murray & Spens LLP, One London Wall, London, EC2Y 5AB at 10:00 a.m. The Chairman and Chief Executive, Algy Cluff, will provide the following update to shareholders:
2008 has been a pivotal year in the development of Cluff Gold. It was the year in which we emerged from being an explorer to a producer. As you know, it was also a year in which we witnessed operational challenges along with volatile markets and a worldwide economic crisis. Despite these challenges, 2008 was marked by achievements that will position us better for the coming years.
Primary among these was bringing two mines, Kalsaka and Angovia, into production. Kalsaka in Burkina Faso will emerge from the commissioning phase at the end of this month and we are confident that production for this year will be at least 60,000 ounces. We plan to drill within our License to increase the Kalsaka Mine's productive life and we also intend to make a modest investment to augment the productive capacity of the operation. Burkina Faso remains a stable country that actively supports the mining industry. As a result Burkina Faso remains one of the most favoured investment destinations for our industry in Africa.
The Angovia Mine in Cote D'Ivoire, although not yet out of commissioning, is largely performing to our operational benchmarks and we are moving towards our target of combined production from Kalsaka and Angovia of around 100,000 ounces per year.
Gratifying although it is to be a producer, we recognize to maintain a plan for growth, we need to identify and develop new opportunities. As such, during the year, we focused on increasing the potential of the Baomahun Gold Project in Sierra Leone. Our measured and indicated resources at Baomahun have increased sevenfold to over 1.0 million ounces of gold and results from deeper drilled holes indicate the possibility of the original open pit resource being supplemented by an underground mine. Work has started to test this potential with a 7,000 metre drilling programme already underway to test the resource at depth and along the strike, the result of which we hope will be of great significance for the future growth of this Company. We expect the complete assays results within in the next two months. Should these results be positive, we will begin a scoping study in advance of completing a feasibility study.
As you know we announced in 2008, we acquired a residual 40% ownership of the License at Baomahun and therefore own a 100% interest in the project. Most recently, we secured a Mining Production Lease valid for twenty-five years. While Sierra Leone has a negative perception, we believe it represents a tremendous opportunity. Our experience in dealing with their government at all levels has been beneficial. In addition the infrastructure although challenging in some respects is significantly better than is often perceived.
During the year, we were also successful in listing our shares on the Toronto Stock Exchange and completing a subsequent financing in the amount of US$11.4 million. As one of the world's premier mining exchange, the TSX provides additional visibility and access to resource-focused institutional investors.
Moving forward, in an effort to ensure Cluff Gold meets its goals of becoming a mid-tier gold producer, we are focused on the following key goals in 2009: advancing the Baomahun project, achieving a production rate of a 100, 000 ounces, and growing our resources.
With no debt or hedging, and a strong cash balance, we are well positioned to seek additional opportunities for consolidation in the West African region.
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, Sierra Leone, Mali and Ghana. Cluff Gold progressed from being an explorer to a producer in Q1 2008 and is expected to produce 100,000 ounces of gold on an annualised basis from 2009 from its Angovia Gold Mine in Cote d'Ivoire and from its Kalsaka Gold Mine in Burkina Faso. Cluff Gold is actively evaluating known satellite deposits to expand the resource base at both mines.
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.
Competent Person
Douglas D. Chikohora has reviewed and approved the information contained in this announcement. Mr Chikohora (MSc, MIMMM, CEng) is Technical Director of the Company.
For further information, please contact:
Cluff Gold plc
J.G. Cluff
Chairman
+44 (0)1978 846 946
Evolution Securities Limited
Rob Collins
Simon Edwards
+44 (0)20 7071 4300
BMO Capital Markets Limited
Bill Smith
+44 (0)20 7664 8120
Martin Bawlf
+44 (0)20 7664 8047
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Joanna Longo Investor Relations (Canada) The Equicom Group +1 416 815 0700 ext 233 |
Simon Robinson Investor Relations (U.K.) Farm Street Communications Ltd +44 (0) 207 099 2212 |
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