Amara Mining Regulatory News (AMA)

28 Jul 2006 07:01

Cluff Gold PLC28 July 2006 28 July 2006 CLUFF GOLD PLC Update on Baomahun Gold Prospect, Sierra Leone Cluff Gold Plc ("Cluff Gold" or "the Company") today announces further drillingresults and the discovery of a new high grade area of the Eastern Zone orebody,which has been intersected by the follow up drilling programme at the BaomahunGold Prospect ("Baomahun") in Sierra Leone. This drilling programme is designedto investigate the strike and down dip extensions of the three zones: Eastern,Central and Western. Highlights: • DDH47 intersects multiple mineralised intercepts, including a high grade zone of 16m grading on average 20.61g/t Au, with a 1m wide centre grading 111.5g/t Au• Intersection in DDH47 extends Eastern Zone orebody to a vertical depth of at least 170m• As the orebody gets deeper, the grade appears to increase significantly• The 100-metre 'gap' between the Central and Western Zones is confirmed to be mineralised• Recent bottle roll test work suggests that the Central Zone ore is not refractory• More than 5,000m of follow up core drilling is programmed for the 2006 field season Below is a table giving the full set of new drilling results: Hole ID Dip (degrees) Azimuth Intercept From (m) Zone Comments (degrees)DDH35 45 042 14m@0.61g/t 132 Central 10m@3.19g/t 185 13m@1.56g/t 239 DDH36 45 042 5m@1.37g/t 222 Central 3m@3.00g/t 234 45 042 2m@1.81g/t 85 Central -WesternDDH37 3m@3.17g/t 94 DDH38 45 Not significant Central Hole stopped in f/w DDH39 45 Central Results pending DDH40 45 2m@3.90g/t 102 Central WesternDDH41 45 Western Results pending DDH42 45 Western Results pending DDH43 45 Western Results pending DDH44 45 Western Results pending DDH45 45 6m@1.18g/t 89 Central - Western 10m@1.15g/t 114DDH46 45 8m@1.96g/t 101 Central - Western 7m@1.30g/t 122DDH47 45 3m@1.12g/t 108 Eastern Includes 7m@43.21g/t from 147m and 16m@20.61g/t 142 1m@111.5g/t from 148m 3m@1.51g/t 175 15m@4.36g/t 207 DDH48 Results pending Drill hole DDH47 was drilled down dip of drill holes DDH1 and DDH2. As reportedin February 2005, DDH1 recorded a down the hole intersection of 30m grading4.68g/t Au on average and DDH2 recorded a down the hole intersection of 20mgrading on average 2.72g/t Au. Current results from DDH47 suggest that thegrade increases significantly with depth in the main structure, with the receiptof a down the hole intersection of 16m grading on average 20.61g/t Au. Intersections in DDH37, 40, 45 and 46 are in the 100m long 'gap' between theCentral and Western Zones. These results were expected as they confirm earliertrenching results which suggested that the Central and Western Zones form partof one much larger structure with a potential strike extent of more than 2km,within a 3.4km mineralised corridor. This corridor is part of the banded ironformation-rich Kangari Hills greenstone belt found at Baomahun and the overallstrike length of this belt covered by the Baomahun licence is about 12km. Recent bottle roll test work on mineralised samples from the Central Zonesuggests that the ore is not refractory. This is consistent with results ofpreliminary metallurgical test work undertaken in 1992 by Anamet Services inBristol on ores from the Eastern Zone. The work was done on behalf of HarryWinston Inc. Douglas Chikohora, Technical Director of Cluff Gold plc, comments: "This is aphenomenal exploration result, as these high grade drilling intercepts have farsurpassed management expectations. Baomahun is an exciting project andmanagement is now confident that it is showing all the indicators of apotentially major gold deposit. "We intend to step up our drilling programme in order to aggressively furtherdefine and extend the orebody zones, which we believe to be part of a large,continuous mineralised structure. We will also be in a position to update theresource base of Baomahun on receipt of the remaining assay results from thefive holes in the near future." 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 Gold 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 WH Ireland Parkgreen CommunicationsJ.G. Cluff / Douglas Chikohora David Youngman Cathy Malins / Annabel LeatherChairman / Technical Director Tel: +44 (0)161 832 2174 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