22nd Oct 2009 07:00
AIM:CLF
TSX:CFG
For release on Thursday 22nd October 2009 at 7.00a.m. BST
Cluff Gold plc
("Cluff Gold" or the "Company")
Cluff Gold announces a 40 per cent. increase in total Mineral Resources at the Baomahun Gold Project, its flagship gold deposit in Sierra Leone
Cluff Gold, the West African focused gold mining company, is pleased to announce the following updated NI43-101 compliant Mineral Resource estimate at its Baomahun Gold Project in Sierra Leone. This followed the recent completion of a 7,000 metre core drilling programme undertaken to test the underground potential.
Inferred Mineral Resources have increased by over 500,000 ounces to 957,000 ounces of gold (9.2 million tonnes grading 3.2 g/t Au).
In addition, total Measured and Indicated Mineral Resources are now 1,103,000 ounces of gold (12.0 million tonnes grading 2.9g/t Au).
A Scoping Study has been initiated into the combined open pit/underground scenario with completion expected in Q1, 2010 which will be independently reviewed by SRK Consulting (UK) Limited.
A work programme to follow up on the positive results announced today is planned to commence in Q4 2009. This will include investigation of potential extensions of the mineralisation as announced on 8 September 2009, including DDH301 (10 metres at 10.5 g/t) in the Central Zone and DDH298 (9 metres at 5.97 g/t) in the Eastern Zone.
Commenting on these results, Mr. Douglas Chikohora, Technical Director of Cluff Gold plc said, "We are very pleased with the continued growth of the mineral resource at Baomahun with an overall exploration cost of US$9 per ounce discovered to date. The recent drilling has added over 600,000 ounces to our total mineral resource base at grades and widths that are conducive to our plans to establish a combined open pit and underground operation at Baomahun. We look forward to completing the Scoping Study early next year, which will be based on this larger resource, and will address the potential of a combined open pit and underground operation with a much longer mine life."
The increase in the Mineral Resource at Baomahun results from the completion of an additional 7,000 metres of core drilling across 11 holes that has been completed since the previous Baomahun mineral resource was announced on 28th November 2008.
Table 1 below summarises the current Mineral Resource estimate at Baomahun and is based on a 1g/t Au cut off:
Table 1. Baomahun Gold Project NI43-101-compliant Mineral Resource, October 2009
|
Category |
Domain |
Tonnes |
Grade |
Gold |
|
(t) |
(g/t Au) |
(Oz) |
||
|
Measured |
EASTERN |
1,997,000 |
3.4 |
221,000 |
|
FOLD |
159,000 |
2.4 |
12,000 |
|
|
CENTRAL |
530,000 |
3.0 |
51,000 |
|
|
WESTERN1 |
246,000 |
2.4 |
19,000 |
|
|
WESTERN2 |
1,001,000 |
2.4 |
77,000 |
|
|
TOTAL |
3,933,000 |
3.0 |
380,000 |
|
|
Indicated |
EASTERN |
2,545,000 |
2.9 |
241,000 |
|
FOLD |
487,000 |
2.9 |
45,000 |
|
|
CENTRAL |
1,744,000 |
3.4 |
191,000 |
|
|
WESTERN1 |
1,072,000 |
2.5 |
87,000 |
|
|
WESTERN2 |
2,255,000 |
2.2 |
159,000 |
|
|
TOTAL |
8,103,000 |
2.8 |
723,000 |
|
|
Inferred |
EASTERN |
3,930,000 |
3.0 |
381,000 |
|
FOLD |
2,683,000 |
4.2 |
360,000 |
|
|
CENTRAL |
1,345,000 |
3.0 |
130,000 |
|
|
WESTERN1 |
277,000 |
2.0 |
18,000 |
|
|
WESTERN2 |
931,000 |
2.3 |
68,000 |
|
|
TOTAL |
9,166,000 |
3.2 |
957,000 |
Notes:
(1) The estimates of mineral resources were calculated in accordance with the definitions adopted by the Canadian Institute of Mining Metallurgy and Petroleum and incorporated into National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI43-101"). The mineral resources estimates were carried out by Andrew Owusu Asante who is a Member of Australasian Institute of Mining and Metallurgy (AusIMM) under the direction of Douglas D Chikohora, MSc, MIMMM, CEng., Technical Director and Cluff Gold's Qualified Person who has reviewed this news release for accuracy and compliance.
(2) Mineral resource estimates are reported in gross ounces and not attributable ounces.
(3) The estimate of mineral resources may be materially affected by environmental, permitting, legal, marketing, or other relevant issues.
(4) Grade represents an average, weighted by reference to tonnes of ore type where several recovery processes apply.
(5) Ounces estimated to be present in the tonnes of ore which would be mined and processed. Mill recovery rates have not been applied in calculating the contained ounces.
(6) This mineral resource estimate for the Baomahun property uses a 1.0 g/t Au cut-off.
(7) Cluff Gold's attributable portion of the mineral resource estimate is 100%.
(8) Tonnes and gold figures are rounded to the nearest '000. Grade is rounded to 1DP. As a result, rounding errors may occur.
(9) SRK Consulting (UK) Ltd has been retained to independently review the Scoping Study as this is produced.
The Baomahun Gold Project covers an area of about 137 km sq and is located 180 kilometres east of Freetown, in the Southern Province of Sierra Leone. The Baomahun licence area covers more than 12 kilometres of prospective strike along the Kangari Hills which is composed of Archaean greenstone belt terrain consisting of banded iron formation (BIF). Gold mineralisation in the drilled areas is intimately associated with the BIF and other lithologies in close proximity to the BIF. Accordingly, future exploration and drilling will continue to use the BIF as a marker horizon for auriferous zones along the belt.
Gold grades were estimated using ordinary kriging and inverse distance weighting interpolation methods. The mineralisation models were constrained within the wireframe with primary block dimensions of 10 metres along the strike and cross structure directions, and 10 metres in the vertical direction. Higher-grade values have been statistically capped to 40 g/t Au. A total of 3,346 density determinations have been undertaken using the displacement method and the density samples falling within each defined wireframe domains were selected and the average density applied. Tonnages and grades are reported using a 1.0 g/t Au cut-off.
Drill cores used for assaying were sampled at a maximum of one metre intervals and were cut with a diamond saw with one half of the core placed in sealed bags and sent to the Alex Stewart Assayers Ltd ("Alex Stewart") sample preparation facility in Baomahun, Sierra Leone. On the 31st May 2009, Alex Stewart ceased operating the sample preparation laboratory and Cluff purchased the facility and continued operations. The core samples were then crushed with half the sample then being pulverised down to minus 75 microns. A portion of the pulverised sample was then shipped to the SGS Laboratory (which is independent of the Company) in Guinea where the samples were analysed for gold by fire assay using a 50 g sample. As part of the Company's QA/QC procedures, internationally recognised standards and blanks were inserted into the sample batches and an interlab comparison was undertaken using samples submitted to Omac Laboratories Ltd (Omac) in Ireland.
Metallurgical testwork, which included recovery and comminution tests, has now been completed to feasibility stage level. Results obtained from these tests have confirmed preliminary earlier findings that high gold recoveries can be achieved using a conventional direct cyanidation processing method. Comminution test results show that the mineralised material at Baomahun requires conventional milling with only medium energy requirements.
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 future exploration drilling results at Baomahun, and potential production at Angovia and Kalsaka, 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.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE
For further information, please contact:
Cluff Gold plc
J.G. Cluff/Douglas Chikohora
Tel: +44 (0) 20 7340 9790
|
Evolution Securities Limited Rob Collins Tim Redfern Tel: +44 (0) 20 7071 4300 |
|
Farm Street Communications Ltd Investor Relations (U.K.) Simon Robinson +44 (0) 20 7099 2212 |
The Equicom Group Investor Relations (Canada) Joanna Longo +1 416 815 0700 ext 233 |
Notes to Editors:
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, and Mali. 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 for 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.
Baomahun, Sierra Leone
The Baomahun Gold Project covers an area of about 137 km2 and is located about 180 kilometres east of Freetown, in the Southern Province of Sierra Leone. The geological setting is similar to the Lake Victoria goldfields in Tanzania.
The Baomahun exploitation permit covers more than 12 kilometres of prospective strike along the Kangari Hills which is composed of Archaean greenstone belt terrain consisting of banded iron formation (BIF). Gold mineralisation in the drilled areas is intimately associated with the BIF and other lithologies in close proximity to the BIF. Accordingly, future exploration and drilling will continue to use the BIF as a marker horizon for auriferous zones along the belt.
On 17 July 2008, the Company announced that the Government of Sierra Leone had granted Baomahun Gold Limited, a 100 per cent. owned subsidiary of the Company, a Mining Lease for 25 years over an area of 59.85sq kilometres.
Cluff Gold now holds 100 per cent. of the Baomahun Gold Project. Cluff Gold announced on 4 August 2008 that it had acquired the outstanding 40 per cent. interest in the project for US$21.8 million which was satisfied by the issue of 12,390,909 ordinary shares in the Company.
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