4 Jun 2010 07:00
4 June 2010 AIM: CLF / TSX: CFG
Cluff Gold plc
("Cluff Gold" or the "Company")
Announces increased Mineral Resource Estimate at its Baomahun Gold Project, Sierra Leone
Cluff Gold, the dual AIM/TSX listed 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.
Highlights:
·; Total Measured and Indicated Mineral Resources have increased by 27% to 1.4 million ounces of gold (15,096,000 tonnes grading 2.92 g/t);
·; Inferred Resources now stand at 1.03 million ounces of gold (12,168,000 tonnes grading 2.64 g/t);
·; The new resource figures will be incorporated into the Preliminary Assessment (Scoping Study) which is due to be completed by the end of this month;
·; Further drilling is planned over new anomalies identified by the encouraging heliborne VTEM (Versatile Time-Domain Electromagnetic) survey announced by the Company on 9 April 2010. This drill programme will continue until the onset of the rainy season in August.
The increase in the Mineral Resources at Baomahun follows the completion of an additional 7,000 metres of core drilling testing the continuity of known mineralisation in all directions as well as additional structures recently discovered. Seventeen holes have been drilled since the previous Baomahun mineral resource estimation which the Company announced on 22nd October 2009.
Mr. Douglas Chikohora, Technical Director of Cluff Gold commented:
"The increase in the Mineral Resource and the preliminary results from the VTEM survey, reconfirm that our Baomahun Project continues to exceed our expectations.
We aim to continue our drilling programme for the foreseeable future and we remain optimistic about the future economic viability of Baomahun, especially with these new figures included in the Preliminary Assessment (Scoping Study)."
Explanation of Tables:
Table 1 below summarises the current Mineral Resource estimates at Baomahun, using a 1.0g/t Au cut off:
Table 1. Baomahun Gold Project NI43-101 compliant Mineral Resources, June 2010
| RESOURCE | ORE BLOCK ZONE | TONNAGE (tonne) |
| g/t Au | OUNCES OF GOLD |
| MEASURED | EAST | 2,774,000 |
| 3.28 | 293,000 |
| FOLD | 217,000 |
| 2.16 | 15,000 | |
| CENTRAL | 740,000 |
| 2.87 | 68,000 | |
| WEST1 | 409,000 |
| 2.31 | 30,000 | |
| WEST2 | 1,314,000 |
| 2.41 | 102,000 | |
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| 5,454,000 |
| 2.90 | 508,000 |
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| INDICATED | EAST | 3,741,000 |
| 3.33 | 401,000 |
| FOLD | 447,000 |
| 2.83 | 41,000 | |
| CENTRAL | 1,967,000 |
| 3.45 | 218,000 | |
| WEST1 | 1,036,000 |
| 2.56 | 85,000 | |
| WEST2 | 2,451,000 |
| 2.08 | 164,000 | |
|
|
| 9,642,000 |
| 2.93 | 909,000 |
| Total: Measured + Indicated |
| 15,096,000 |
| 2.92 | 1,417,000 |
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| INFERRED | EAST | 2,132,000 | 3.64 | 250,000 | |
| FOLD | 376,000 |
| 2.86 | 35,000 | |
| CENTRAL | 3,450,000 |
| 3.61 | 400,000 | |
| WEST1 | 642,000 |
| 2.81 | 58,000 | |
| WEST2 | 5,568,000 |
| 1.62 | 290,000 | |
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| 12,168,000 |
| 2.64 | 1,033,000 |
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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 Australian Institute of Mining and Metallurgy (AusIMM) under the direction of Douglas D Chikohora, MSc, MIMMM, CEng., Technical Director of Cluff Gold and the Company's Qualified Person who has reviewed this press 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 represent estimated gold content 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 2 DP. As a result, rounding errors may occur.
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. 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 to be sampled at the Company's facility at Baomahun, Sierra Leone. The core samples were then crushed to minus 4mm and split, with approximately 1.5 kg of sample of sample pulverised down to 95% passing 106 microns. Approximately 120 grams 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 50g sample. As part of the Company's QA/QC procedures, internationally recognized standards were adhered to, part of which includes inserting into the sample batches and using interlab comparisons of samples submitted to Omac Laboratories Ltd (Omac) in Ireland.
Metallurgical testwork, which included recovery and communition tests, has now been completed to feasibility stage level. Results obtained from these tests have confirmed earlier preliminary findings that high gold recoveries can be achieved using a conventional direct cyanidation processing method. Communition test results show that the mineralised material at Baomahun requires conventional milling with only medium energy requirements.
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 and Sierra Leone. Cluff Gold progressed from being an explorer to a producer in Q1 2008 and is expected to produce a total of 100,000 ounces of gold in 2010 from its Angovia Gold Mine in Côte d'Ivoire and its Kalsaka Gold Mine in Burkina Faso. Cluff Gold is actively evaluating known satellite deposits to expand the resource base at both mines. The Company is also pushing forward with the preliminary assessment at its wholly-owned Baomahun project in Sierra Leone where a measured and indicated resource estimated to contain over 1.4 million ounces of gold, in accordance with NI 43-101, has been announced to date (508,000ozs at 2.92g/t measured; 909,000ozs at 2.93 g/t indicated; plus an additional 1,033,000mozs at 2.64g/t inferred).
For further information, please contact:
| Cluff Gold plc J.G. Cluff - Chairman and Chief Executive Douglas Chikohora - Technical Director Tel: +44 (0) 20 7340 9790 | Evolution Securities Limited Rob Collins Tim Redfern Tel: +44 (0) 20 7071 4300 |
| Pelham Bell Pottinger
Investor Relations (Global) Charles Vivian Klara Kaczmarek Tel: +44 (0) 20 7861 3232 | Farm Street Communications Ltd
Press Relations (U.K.) Simon Robinson +44 (0) 7593 340 107 simon.robinson@farmstreetmedia.com |
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NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE.
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 potential future production at Angovia and Kalsaka, exploration and drilling results at Baomahun, 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.
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.
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.