Amara Mining Regulatory News (AMA)

16 Jun 2006 07:00

Cluff Gold PLC16 June 2006 CLUFF GOLD PLC Drilling Update, Baomahun Gold Prospect, Sierra Leone Cluff Gold Plc ("Cluff Gold" or "the Company") today announces the progress ofits follow up drilling programme at the Baomahun Gold Prospect ("Baomahun") inSierra Leone. This programme has been designed to investigate the strike anddown dip extensions of the three zones: Eastern, Central and Western. Highlights: • Sixteen drillholes completed for a total of 3,700 metres to date • Assay results received for two holes so far • Drillhole DDH34 intersects 22 metres mineralised intercept grading on average 8.24g/t gold ("Au"), including 5 metres grading 19.90 g/t Au down the hole • DDH33 intersected 5 metres of mineralised intercept grading on average 1.29 g/t Au down the hole • Intersection extends Central Zone orebody to 175 metres vertical depth • More than 5,000 metres of follow up core drilling is programmed for the 2006 field season Drillhole DDH34 was drilled downdip of drillhole DDH25, which recorded a downthe hole intersection of 32 metres grading 3.76g/t Au as reported in October2005. The drilling was done at an inclined angle of 45 degrees with an azimuthof 042 degrees. DDH33 and DDH34 were drilled to a depth of 238 and 240 metresrespectively. One metre quarter core splits were obtained down the holes from100 metres and 105 metres depth for DDH33 AND DDH34 respectively and submittedfor sample preparation before gold analysis by the fire assay method. Cluff Gold's current interpretation is that drillhole DDH33 may have beenstopped before reaching the main zone of mineralisation and therefore deepeningof the hole is planned. As reported previously, the ongoing trenching programme continues to yieldencouraging results. These results suggest that the Western and Central zonesare one structure with a potential strike extent of more than 2 kilometreswithin the 3.4 kilometres mineralised corridor reported in the past. Thiscorridor is part of the banded iron formation-rich Kangari Hills greenstone beltfound at Baomahun. The strike length of this belt covered by Baomahun is abouttwelve kilometres. Furthermore, the topography at Baomahun suggests that orebodies could be minedeconomically by open cut methods to a vertical depth of 250 metres. The currentdrill campaign has therefore been planned with the objective of maximising thebenefits from the favourable topography. The current published resource of 518,000 Au ounces is hosted in structuresoccupying less than 25% of the strike of the mineralised corridor and isestimated to an average depth of only about 150 metres. Douglas Chikohora, Technical Director of Cluff Gold plc, comments, "We arepleased with the result from drillhole DDH34 which supports previous results andconclusions that the Central Zone orebody grade appears to improve with depth.This is also the best intersection we have encountered so far at Baomahun andprovides further support to the likely existence of a substantial mineralisedstructure at Baomahun which could be mined by open cut methods with favourablestripping ratio. We look forward to announcing results from the remaining holesin due course as and when they are available." About Baomahun: Baomahun is located about 180 km east of the capital of Sierra Leone, Freetown,in the Southern Province of the country and the geological setting is similar tothe Lake Victoria goldfields in Tanzania. Cluff has a right to earn a 60%interest in Baomahun by funding the project to the completion of a bankablefeasibility study or to a maximum of US$5 million. This right is to be acquiredfrom Winston Mines which owns the two exploration licences relating to Baomahun,covering an area of approximately 137 km(2). Qualified Person: Douglas D Chikohora has reviewed the information contained in this announcement.Douglas D Chikohora, Msc, MIMMM, is the Technical Director of the Company. For further information, please contact: Cluff Gold Numis Securities Parkgreen CommunicationsJ.G. Cluff / Douglas Chikohora John Harrison Cathy Malins / Annabel LeatherChairman / Technical Director Tel: +44 (0) 20 7776 1500 Tel: +44 (0) 20 7493 3713Tel: +44 (0) 20 7340 9790 This information is provided by RNS The company news service from the London Stock Exchange