Amara Mining Regulatory News (AMA)

30 November 2010 AIM:CLF/TSX: CFG

kalsaka Exploration DRILLING UPDATE

Drilling results include 14 metres grading 4.25g/t and 11 metres grading 5.55g/t

Cluff Gold plc ("Cluff Gold" or the "Company"), the dual AIM/TSX listed West African-focused gold mining company, is pleased to announce exploration results and its new strategic plans for the Kalsaka mine in Burkina Faso.

Highlights

·; Significant sulphide mineralisation has been intercepted in the ongoing drilling programme by following up on historical drill results. Highlights include:

o 15m at 7.44g/t from 90m depth, as previously announced

o 10m at 3.22g/t from 70m depth

o 14m at 4.25g/t from 75m depth

·; Strong potential to extend the existing mine life through the delineation of additional oxide resources has also been demonstrated by the ongoing drilling programme. Highlights include:

o 16m at 1.82g/t from 28m depth

o 7m at 2.36g/t from 17m depth

o 11m at 5.55g/t from 4m depth

·; Following the Company's recent fundraising, the Company has devised an expanded exploration programme to follow up on significant oxide and sulphide intercepts encountered in recent and historical exploration

·; This accelerated exploration programme focuses on achieving two strategic goals:

o To extend the oxide reserves to ensure continuity of the existing heap leach operation, and

o To target both oxide and sulphide mineralisation within the wider Kalsaka exploration permit and neighbouring Yako exploration permit, which may justify the construction of a conventional CIL/CIP plant so as to generate improved metallurgical recoveries with a faster leaching cycle, thereby increasing the economic returns compared to the existing oxide heap leach operation

·; To achieve the Company's strategic goals for Kalsaka, an expanded 63,000m drilling programme encompassing diamond core, reverse circulation and rotary air blast drilling will commence in Q1 2011, supported by regional geophysics and geochemistry which are underway

Algy Cluff, Chairman and Chief Executive of Cluff Gold, commented:

"We are very pleased with the encouraging results encountered at our exploration programmes at Kalsaka, which demonstrate the high prospectivity of the project, both in oxide and sulphide mineralisation. Our immediate focus at Kalsaka is to continue production at current levels, whilst increasing the oxide resources to extend the mine life. In addition, we believe that Kalsaka has the potential to host significant sulphide mineralisation, and we intend to pursue an exploration strategy that will demonstrate this."

Accelerated exploration programme

As a result of the recent fundraising on 28 October 2010, a number of regional scale exploration activities have been initiated to further define drilling targets for the 2011 programme. These include a gradient array induced polarisation geophysical survey, which will commence in late November and cover significant areas within the Kalsaka mining lease and surrounding exploration permit. This survey will highlight areas of high resistivity and chargeability, which, in turn, can suggest the presence of elevated levels of sulphides and quartz veining that may be associated with significant gold mineralisation. 

In addition, a regional geochemical survey has commenced targeting the major regional structures identified from previous exploration activity across all licences.

The results from the geochemical and geophysical surveys will assist in the planning of an aggressive 63,000m drilling programme which is expected to commence in Q1 2011. This programme will encompass a mixture of diamond core drilling, reverse circulation drilling and rotary air blast drilling.

Recent exploration results

Cluff Gold has recently completed 12,000m of reverse circulation drilling at Kalsaka and the nearby Yako prospect. This programme targeted oxide resources at Zoungwa, Prospect 2000 and Middle Zone, all of which are positioned along the K-Zone shear and not included in the current measured and indicated resources, together with the deeper sulphide potential beneath the K-Zone and East Pit.

The encouraging recent drilling results are the basis of the Company's strategy to significantly expand the exploration programme at Kalsaka, demonstrating substantial sulphide potential as well as the opportunity to expand the current mine life through increased oxide resources. This drilling programme was planned prior to the recent fundraising which has provided the financing to implement the expanded programme quickly.

Sulphide potential beneath K-Zone and East Pit

Historical drilling in K-Zone demonstrated a high grade, steeply dipping zone of oxide mineralisation, which included intercepts of 14m at 9.71g/t and 21m at 7.30g/t, which are included in the current resources. This area is open at depth and along strike. An additional 583m of drilling was carried out in this area as part of the latest programme which demonstrated continuity of this zone at depth illustrated by an intercept of 15m at 7.44g/t from 90m in hole KRC0048, as announced on 28 October 2010. 

The recent drill programme has also targeted the sulphide potential beneath the East Pit, with a total of 436m drilled to demonstrate the continuity of existing mineralisation at depth. Results included an intercept of 10m at 3.22g/t from 70m in hole KRC105 and 5m at 2.47g/t from 78m in hole KRC0106, located 25m to the east of hole KRC105. These holes have been drilled from the base of the current open pit at a vertical depth of 70m.

New oxide resources

The recent drilling programme also targeted shallow oxide resources in three areas following up on historical drill results.

A total of 1,980m of reverse circulation drilling was completed at Zoungwa prospect, 4km east of K-Zone, where an inferred resource of 27,000oz had previously been delineated. Results include 16m at 1.82g/t from 28m in hole KRC0086 and 7m at 2.36g/t from 17m in hole KRC0084, and demonstrate the continuity of an ore-body over a 250m strike length, which is open to the east and at depth. Results show an increasing grade at depth, suggesting that sulphide mineralisation may be present.

A further 1,351m of reverse circulation drilling was completed at Prospect 2000, to the west of K-Zone, and 1,750m on the Middle Zone which is south of K-Zone. Drilling highlights include 9m at 2.02g/t from 58m in hole KRC0019 and 11m at 5.55g/t from 4m in hole KRC0100, which are both from the Middle Zone, which is still open along strike. At Prospect 2000, results include 6m at 2.18g/t from 75m in hole KRC0116, with grades improving at depth suggesting the potential for sulphide mineralisation.

Yako licence

In addition to the work on the Kalsaka licence, 3,342m of reverse circulation drilling was completed at the Yako licence, located 20km southwest of the Kalsaka licence. Currently 150,000 ounces of inferred resources (2.53 Mt at 1.9g/t) have been delineated from earlier exploration1. Results to date include 12m at 1.53g/t from 17m in hole KRC0165, demonstrating that the Yako licence has the potential to host substantial oxide mineralisation.

In addition, some deeper holes were drilled targeting sulphide mineralisation, with results including 14m at 4.25g/t from 75m in hole KRC0167, suggesting that the Yako licence also has the potential to host sulphide mineralisation.

Expanded exploration programme

The above drilling highlights suggest that Kalsaka has the potential to host significantly more oxide and sulphide resources than currently delineated. The Company is committed to ensuring that the true potential is realised. As such, regional geophysics and geochemistry surveys are underway to support the expanded 63,000m drilling programme, and a more detailed exploration update will follow in due course.

Quality Assurance and Quality Control

The drilling programme was undertaken by an independent drilling contractor. All the drill holes collar positions were pegged using a total station theodolite and re-surveyed after drilling. The drill collars after survey were checked by onsite geologist. Each 1.0m RC chipping passing through a cyclone is collected in a plastic bag and reduced in a multistage splitter to get a split of between 2kg and 4kg. Sampling was done under the supervision of the site geologist. Duplicate samples were collected at every 10th sample point and one blank inserted at every 20th point. Samples were submitted to the in-house laboratory, dried, crushed and pulverised to 85-90% passing 106µm and analysed by bulk leach extractable gold assays for twelve hours. Check assays were also submitted to external commercial laboratories in Burkina Faso as part of the Company's quality control procedures.

END.

About Cluff Gold

Cluff Gold is a gold developer-producer with assets in West Africa. The Company generates cash flow from its two producing assets, Kalsaka in Burkina Faso and Angovia in Côte d'Ivoire, which together produce a total of 100,000oz of gold per annum. The Company strives to become a mid-tier producer through the development of its wholly-owned Baomahun project in Sierra Leone, which is expected to contribute an additional 157,000oz of gold per annum, with significant exploration potential along strike. With its experience of bringing new mines into production, the Company aims to further increase its production profile with its highly prospective exploration work at all three projects.

For further information, please contact:

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE.

This press 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, Kalsaka and Baomhaun, 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.

Mr. Andrew Asante, (M.Sc., AusIMM), Resource Manager for Kalsaka and a "qualified person" as such term is defined in National Instrument 43-101, has reviewed the contents of this press release. Mr. Asante has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained herein.

Detailed descriptions of the various exploration prospects at Kalsaka were previously disclosed in the Company's NI43-101 report Technical Review of Kalsaka Gold Mine, Burkina Faso, as prepared by SRK Consulting, dated October 2008 and available on SEDAR.

This press release contains information relating to potential grade and quantities from properties material to the Company. Readers are advised that such grades and quantities are conceptual in nature as there has been insufficient exploration to define a mineral resource and there can be no assurance that further exploration will result in the targets being delineated as mineral resource. The potential grades and quantities were based on the sampling methodology described above.