Amara Mining Regulatory News (AMA)

11 Sep 2006 07:01

Cluff Gold PLC11 September 2006 CLUFF GOLD PLC Cluff Increases Gold Resource by 70% at Baomahun in Sierra Leone Cluff Gold Plc ("Cluff" or "the Company") today announces that SRK Consulting ("SRK") has concluded a resource update on the Baomahun Gold Project, SierraLeone. Key highlights - Resource increased by 70% to 880,000 ounces with an average grade of 3.2 g/t - The majority of the prospective corridor is yet to be drill tested - The mineralisation remains open at depth and along strike - Further drilling planned in October, following the seasonal rains - High grade zone intersected at a depth of 200 metres in the Eastern Zone This resource update follows the completion of a recent 4400 metre core drillingprogramme which was undertaken in a small area of the twelve kilometre strikelength within the project licence area which is situated along the prospectiveKangari Hills Greenstone Belt. SRK has derived a Mineral Resource, as defined bythe JORC code, of 8.65 million tonnes at a mean grade of 3.2g/t on the Eastern,Central and Western Zones as per Table 1 below. High grade samples were cut to40g/t.Au. The mineralisation remains open at depth and along strike on the threeZones. The airborne geophysical surveys which were completed last year picked up anextensive banded iron formation ("BIF") and this formation has been found to beintimately associated with high grade gold mineralisation in the drilled areas.Future exploration will use the BIF as a marker horizon for auriferous (goldbearing) zones in the belt. Table 1: Total Resources - Baomahun Project Resource Class Resource Area Tonnage Grade Gold Content (kt) (g/t.Au) (Oz)Indicated East 240 5.0 40,000 Inferred East 2,080 4.8 320,000Inferred Central 2,210 3.9 280,000Inferred West 4,120 1.9 250,000 Total Indicated East 240 5.0 40,000Total Inferred All areas 8,410 3.1 840,000 All Categories All Areas 8,650 3.2 880,000 Mr. Douglas Chikohora, Technical Director of Cluff Gold plc comments, "We arevery pleased with the latest resource update by SRK which has surpassed ourexpectations and serves to substantiate the recent independent report from L RKilpatrick which stated that this project has the potential to be a multimillion ounce deposit. We are also very pleased to have achieved these resultsat a discovery cost of less than US$5/oz. We expect to make further progresswhen drilling resumes in October this year after the rainy season, as themajority of the strike length is still to be defined." About Baomahun: Baomahun is located about 180 km east of the capital, Freetown, in the SouthernProvince of the country and the geological setting is similar to the LakeVictoria goldfields in Tanzania. Cluff has a right to earn a 60% interest inBaomahun by funding the project to the completion of a bankable feasibilitystudy or to a maximum of US$5 million. This right is to be acquired fromWinston Mines which owns the two exploration licences relating to Baomahun,covering an area of approximately 137 km(2). Qualified Person: The Mineral Resource Estimate presented here has been carried out on behalf ofSRK Consulting by Dr. Simon Ingram (MIOM3). Dr Ingram has sufficient experiencewhich is relative to the style of mineralisation and type of deposit underconsideration, and to the activity which he is undertaking, to qualify as aCompetent Person as defined in the 2004 edition of the 'Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves'. Dr Ingramconsents to the inclusion in this press release of the matters based on hisinformation in the form and context in which it appears. For further information, please contact: Cluff Gold WH Ireland Parkgreen CommunicationsJ.G. Cluff / Douglas Chikohora David Youngman Cathy Malins / Annabel LeatherChairman / Technical Director Tel: 0161 832 2174 Tel: 020 7493 3713 Tel: 020 7340 9790 This information is provided by RNS The company news service from the London Stock Exchange