19th Nov 2007 07:01
Cluff Gold PLC19 November 2007 19th November 2007 AIM: CLF Cluff Gold plc (''Cluff Gold'' or the ''Company'') Mine Construction and Operational Update Cluff Gold Plc today announces an update on significant progress at their mainprojects in West Africa. Highlights: • Cluff Gold is on-track to progress from being an explorer to a producer by early Q1 2008 • Angovia construction on schedule to pour gold in early Q1 2008 • Kalsaka construction on schedule to pour gold late Q1, 2008 • Combined projected development CAPEX for Angovia and Kalsaka of US$35 million • Combined projected annualised gold production of 100,000 ounces • Increase in attributable gold resources of over 20% to 1.7 million ounces, see table below • Work underway to upgrade the Baomahun Scoping Study into a pre-feasibility study • Environmental baseline study for Baomahun underway • All assays from previous Baomahun drilling campaign now received • Significant intersections encountered at Baomahun in some holes currently not included in the resource model • At Baomahun, Drill holes DDH 155 and DDH 164 intersected 28 metres @ 7.4g /t Au and 29 metres @ 9.09g/t Au respectively • Two rigs recommenced drilling on 1st November 2007 at Baomahun • The Company is planning to list on Toronto Stock Exchange in H1 2008 Table of Attributable Resources: PROJECT OZSBaomahun 696,000Angovia 445,500Kalsaka/Yako 603,000TOTAL 1,744,500 Angovia Gold Project, Cote d'Ivoire: The JORC-compliant Mineral Resource at the project has increased by 50% from 330000 to 495,000 ounces following a resource update in September 2007. Thisfollowed the receipt of assay results from additional drilling at Prospects 4and 2 which have merged into one structure and one pit. The resource estimatewas prepared by Dr Simon Ingram, an independent resource geologist withextensive experience in the industry. Dr Ingram estimated all previouslyannounced resources at Angovia before they were audited by SRK Consultants. The Mineral Resource estimate is detailed below. The resource is reported basedon a 0.5 g/t Au cut-off. Individual assay values above 20 g/t Au were cut to 20g/t prior to any grade interpolation. Ore type Category Tonnes Au Grade Gold t g/t Oz Oxide Measured 2,097,571 1.44 97,000Oxide Indicated 2,007,482 1.41 91,000Oxide Inferred 557,394 1.55 28,000Oxide All 4,662,447 1.44 216,000Sulphide Measured 2,968,246 1.54 147,000Sulphide Indicated 2,209,293 1.65 117,000Sulphide Inferred 297,060 1.63 16,000Sulphide All 5,474,598 1.59 279,000 Mineralisation remains open in all directions at Prospects 3 and AN2 and currentdrilling is focusing on these two areas and the potential to identify additionalresources. These two prospects are less than two kilometres from the processingfacility. Additional new anomalies proximal to the processing facility are alsobeing followed up by reverse circulation drilling. The development of the Mine continues on schedule with most of the earthworksand refurbishment of equipment now completed. Delivery to site of majorequipment including the ADR plant and MMD crusher has been completed. Orders forplant consumables such as cyanide, cement and carbon have been placed. Initial life of mine and short term mine plans have been completed based onlatest pit optimisation of Prospects 2 and 4. These two prospects are closest tothe processing facilities and will be mined first. The mine plan which targetsnear surface highly oxidised ore was completed using an ore productionthroughput of 750, 000 tonnes per annum and a gold price of US$600/oz. Gradecontrol sampling has commenced in order to direct initial mining and orecontrol. The appointed Mining contractor has commenced mobilisation to site and mining isscheduled to start imminently. Kalsaka Gold Project, Burkina Faso: The development of the project is firmly on course with production scheduled tostart in Q1 of 2008. Procurement and delivery ex-works of the processing plantis expected before the end of November. Delivery to site of some of theequipment has commenced and excavation of the 20 kilometre water pipe line is onschedule. Baomahun Gold Project, Sierra Leone: All assay results from 47 holes drilled during the previous drilling campaignhave now been received. Drill intersections encountered confirmed the trendsalready established and below is a table summarising intersections from aselection of the holes. Hole ID Dip(0) Azimuth (0) Intercept From (m) To (m) Zone Comments DDH151 45 72 9m @ 2.31g/t 129 138 Western includes 2m @ 5.83g/t from 135m 7m @ 1.45g/t 216 223 13m @ 1.80g/t 235 248 DDH153 45 72 8m @ 1.29g/t 112 120 Western 2m @ 1.85g/t 123 125 4m @ 9.46g/t 139 143 5m @ 1.09g/t 178 183 5m @ 1.162g/t 222 227 DDH155 46 72 28m @ 7.4g/t 41 69 Western includes 7m @ 11.74g/t from 62m 11m @ 2.08g/t 72 83 DDH157 45 72 7m @ 2.83g/t 16 23 Western 16m @ 2.84g/t 27 43 4m @ 1.95g/t 54 58 4m @ 1.30g/t 88 92 4m @ 2.30g/t 140 144 16.5m @ 1.12g/t 159 175.5 DDH158 45 215 19m @ 6.23g/t 46 65 Eastern includes 5m @ 14.02g/t from 47m 5m @1.15g/t 68 73 3m @ 1.89g/t 109 112 DDH159 45 72 9m @ 2.93g/t 57 66 Western 3m @ 5.19g/t 70 73 10m @ 1.71g/t 76 86 9m @ 1.46g/t 99 108 11m @ 2.17g/t 121 132 41m @ 1.65g/t 162 203 DDH160 45 215 13m @ 4.17g/t 16 29 Eastern includes 3m @ 11.62g/t from 25m 2m @ 4.75g/t 73 75 2m @ 3.91g/t 91 93 4m @ 1.52g/t 129 133 2m @ 1.34g/t 179 181 DDH163 45 72 2m @ 1.2g/t 24 26 Western 19m @ 2.63g/t 81 100 includes 1m @ 25.17g/t from 94m 7m @ 2.05g/t 144 151 DDH164 45 42 2m @ 1.57g/t 216 218 Eastern 29m @9.09g/t 232 261 includes 6m @ 23.0g/t from 250m These 47 holes are not yet included in the resource estimate of 1.16 millionounces announced on 4th July 2007. Drilling with two rigs on double shifts recommenced after the rainy season. Thetarget is to complete 25,000 metres before the rainy season starts in July 2008.The programme is focusing on infill, down dip and strike extensions drilling toknown mineralization within and adjacent to the ultimate pit shell outlined inthe scoping study. A third rig is expected early in the New Year to undertake some 2,000 metres ofdrilling and enable detailed metallurgical test work to be undertaken. Oncompletion of this, the rig will be deployed to undertake conventional coredrilling together with the other two rigs. The additional drilling and metallurgical data will be incorporated into theupgrade of the recently completed Scoping Study into a pre-feasibility study. In addition, the company has commissioned a local consulting company toundertake an Environmental Baseline Study on the Project. Their report isexpected in the New Year. Recent notable news in Sierra Leone includes the successful conclusion ofpeaceful presidential and parliamentary elections in August 2007, in which MrErnest Bai Koroma was sworn in as Sierra Leone's new president on 17 September2007. Mr Koroma promised zero tolerance on corruption in his inaugural speechand promised to ensure the correct management of state resources. Douglas Chikohora, Technical Director of Cluff Gold plc comments, "We arepleased with the progress made and results achieved in the three years sinceCluff Gold listed on AIM. The work and progress made to date have enabled us toarrive at the point where we are now approaching production at two gold projectsin two neighbouring countries and underway with an aggressive explorationdrilling programme and 1.16m ounce resource estimate in a third country. Thisis an exciting and key period for the company and our shareholders in which,with the nearing of production at two projects, Cluff Gold will shortly movefrom being an explorer to a producer with an annualised production of100,000ozs." Qualified Persons: The Mineral Resource Estimate presented here has been carried out on behalf ofthe company by Dr Simon Ingram Dr Ingram has sufficient experience which isrelative to the style of mineralisation and type of deposit under consideration,and to the activity which he is undertaking, to qualify as a Competent Person asdefined in the 2004 edition of the 'Australasian Code for Reporting ofExploration Results, Mineral Resources and Ore Reserves'. Dr Ingram consents tothe inclusion in this press release of the matters based upon his information inthe form, and context, in which they appear. Douglas D Chikohora has reviewed and approved the information contained in thisannouncement. Douglas D Chikohora, Msc, MIMMM, CEng, is Technical Director ofthe Company. For further information, please contact: Cluff Gold plc WH Ireland LimitedJ.G. Cluff / Douglas Chikohora David YoungmanChairman / Technical Director Tel: +44 161 832 2174Tel: +44 (0) 20 7340 9790 Seymour Pierce Limited Parkgreen CommunicationsCharles Kernot Louise Goodeve / Justine HowarthDirector Metals and Mining Tel: +44 (0) 20 7851 7480Tel: +44 (0) 20 7107 8000 Notes to Editors: About Cluff Gold Cluff Gold plc is focused on the identification, acquisition and development ofgold deposits in West Africa that are amenable to open-pit mining and low costproduction techniques. The Company has made significant progress since its floatation on AIM inDecember 2004, increasing gold resources across its projects, expanding theproject portfolio and broadening the investor base to an increasinglyinternational audience. Mt. Yaoure, Cote d'Ivoire The Mt. Yaoure permit is located 40km northwest of Yamoussoukro, the politicalcapital of Cote d'Ivoire, and covers a surface area of 534km(2). The licencearea includes the Angovia gold mine which operated between 1998 and 2003. Themine reportedly produced over 180,000 ounces of gold during this period by heapleaching some 2 million tonnes of oxide material. The Cote d'Ivoire governmenthas issued a certificate to CMA, a subsidiary of COGEMA, the French uraniummining group, evidencing that it has complied with the work prescribed by themining regulations relating to the protection of the environment and therestoration of the part of the licence area covered by the Angovia gold mine. The infrastructure in the area is good and includes a hydroelectric dam sixkilometres from the Angovia mine site. Kalsaka, Burkina Faso Kalsaka is located approximately 150km north west of Ouagadougou, the capital ofBurkina Faso, and contains an oxide gold mineral resource of 600,000 ounces thathas been demonstrated, by a feasibility study, to be technically amenable toopen-pit mining and processing via heap leaching. Water, environmental andmining permits for the project have been granted. The mining permit is valid fortwenty years. Baomahun, Sierra Leone. The Baomahun Gold Project covers an area of about 137 km-2 and is located about180 kilometres east of Freetown, in the Southern Province of Sierra Leone. Thegeological setting is similar to the Lake Victoria goldfields in Tanzania.According to the terms of a joint venture agreement with the owner of Baomahun,Winston Mines Limited, Cluff Gold has recently completed an earn-in of a 60%interest in the Baomahun prospect by spending US$5 million on exploration /development funding. A JORC resource of 1, 160, 000 ounces has so far beendelineated at Baomahun, though more than 70% of the defined mineralised zone isyet to be drilled. TECHNICAL GLOSSARY Name - Description 'anomalous' - value of a given element that is deemed to be above the backgroundor normal value 'assay' - gold content estimate 'Au' - gold 'auriferous zone' - zone containing high gold values 'carbonate' - relating to rocks rich in calcium and or magnesium 'carbonatite' - an intrusive rock rich in carbonates 'core drilling' - a sampling technique using a drilling technique that allowsthe recovery of rock samples for laboratory analysis to determine gold contentin the ground 'deposit' - an anomalous occurrence of a specific mineral or minerals within theEarth's crust 'dip' - inclination of a geological feature/rock from the horizontal 'feasibility study' - a detailed study of the economics of a project based ontechnical calculations and specific mine designs undertaken to a sufficientlyhigh degree of confidence to justify a decision on construction 'fold' - bent rock layer as a result of deformation 'greenstone' - a field term for altered basic igneous rocks 'g/t' - grammes per tonne'indicated mineral resource' - that part of a mineralresource for which tonnage, densities, shape, physical characteristics, gradeand mineral content can be estimated with a reasonable level of confidence. Itis based on exploration, sampling and testing information gathered thoughappropriate techniques from locations such as outcrops, trenches, pits, workingsand drill holes. The locations are too widely or inappropriately spaced toconfirm geological and/or grade continuity but are spaced closely enough forcontinuity to be assumed 'inferred mineral resource' - that part of a mineral resource for which tonnage,grade and mineral content can be estimated with a low level of confidence. It isinferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriatetechniques from locations such as outcrops, trenches, pits, workings anddrillholes which may be limited or of uncertain quality and reliability 'JORC code' - Australasian code for reporting of mineral resources and orereserves 'km/km' - kilometre(s)/square kilometre(s) 'm' - metre(s) 'mm' - millimetre(s) 'Ma' - abbreviated term for million years 'measured mineral resource' - that portion of a mineral resource for whichtonnage, densities, shape, physical characteristics, grade and mineral contentcan be estimated with a high level of confidence. It is based on detailed andreliable exploration, sampling and testing information gathered through workingsand drill holes. The locations are spaced closely enough to confirm geologicaland/or grade continuity 'mineral resource' - a concentration or occurrence of material of intrinsiceconomic interest in or on the Earth's crust in such form and quantity thatthere are reasonable prospects for eventual economic extraction. The location,quantity, grade, geological characteristics and continuity of a mineral resourceare known, estimated or interpreted from specific geological evidence andknowledge. Mineral resources are sub-divided, in order of increasing geological confidence,into inferred, indicated and measured categories 'mineralised' - rock that contains ore minerals 'scoping study' - first pass assessment of the economic viability of a project 'ore reserve' - the economically mineable part of a measured or indicatedmineral resource. It includes diluting materials and allowances for losses whichmay occur when the material is mined. Appropriate assessments, which may includefeasibility studies, have been carried out, and include consideration of andmodification by realistically assumed, mining, metallurgical, economic,marketing, legal environmental, social and governmental factors. Theseassessments demonstrate at the time of reporting that extraction couldreasonably be justified. Ore reserves are sub-divided in order of increasingconfidence into probable ore reserves and proven ore reserves 'ounce' - troy ounce 'pre-feasibility study' - a study approaching feasibility level based onassumptions and comparisons with like deposits and where variables have moderatedegree of confidence 'probable ore reserve' - the economically mineable part of an indicated, and insome circumstances measured mineral resource. It includes diluting materials andallowances for losses which may occur when the material is mined. Appropriateassessments, which may include feasibility studies, have been carried out, andinclude consideration of and modification by realistically assumed mining,metallurgical, economic, marketing, legal, environmental, social andgovernmental factors. These assessments demonstrate at the time of reportingthat extraction could reasonably be justified 'proven ore reserve' - The economically mineable part of a measured mineralresource. It includes diluting material and allowances for losses which mayoccur when the material is minded. Appropriate assessments, which may includefeasibility studies, have been carried out, and include consideration of andmodification by realistically assumed mining, metallurgical, economic,marketing, legal, environmental, social and governmental factors. Theseassessments demonstrate at the time of reporting that extraction couldreasonably be justified. 'reserves' - that of a mineral resource which has been demonstrated to beeconomically exploitable 'resources' - that part of mineral deposit which has the potential to beexploited 'sedimentary' - rock type formed from fragments of other rocks 'strike' - general trend or direction of a geological feature in a horizontalplane 'volcano:sedimentary' - package of rock comprising intercalated volcanic andsedimentary rocks This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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