27 Aug 2008 07:37
Cluff Gold plc
("Cluff Gold" or the "Company")
SECOND MINE GOES INTO COMMISSIONING AT THE KALSAKA GOLD PROJECT, BURKINA FASO.
Cluff Gold (AIM-"CLF") is pleased to announce that its Kalsaka Gold Project ("Kalsaka") in Burkina Faso, has commenced the commissioning of the dry plant and that approximately 4,500 tonnes of ore have been processed and are now stacked on the leach pads.
The plant has operated on a single shift basis but plans are underway to commence a twenty-four hour operation shortly. Gold production is expected to reach an annualised production level of 60,000 Au ounces by the end of this year.
Kalsaka is the second Gold Project that Cluff Gold has put into production this year. The first was its Angovia Gold Mine in Code d'Ivoire. The two gold projects are expected to produce 100,000 Au ounces of on an annualised basis from 2009.
Douglas Chikohora, Technical Director of Cluff Gold plc comments, "We are pleased with the Company's progress made so far in 2008 despite the challenges associated with constructing and commissioning two projects almost simultaneously in the current mining and economic climate. We believe Cluff Gold is well placed to tackle any potential issues going forward. Although the gold price has softened in the last couple of months, we believe it will remain buoyant over the longer term. We also believe the Company is now poised for significant growth in 2009 when the two gold projects are expected to reach their design production capacities. "
Douglas D Chikohora has reviewed and approved the information contained in this announcement. Douglas D Chikohora, Msc, (MIMMM, CEng) is Technical Director of the Company.
For further information, please contact:
Cluff Gold plc
J.G. Cluff
Tel: +44 (0) 20 7340 9790
W H Ireland
David Youngman/Katy Mitchell
Tel: +44 (0) 161 832 6644
Farm Street Communications
Simon Robinson
Tel: +44 (0) 7887985671
Notes to Editors:
About Cluff Gold
Cluff Gold plc 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 made significant progress since its admission to AIM in December 2004, increasing gold resources across its projects, expanding the project portfolio and broadening the investor base to an increasingly international audience.
Mt. Yaoure, Cote d'Ivoire
The Mt. Yaoure permit is located 40km northwest of Yamoussoukro, the political capital of Cote d'Ivoire, and covers a surface area of 417km(2) including a 50
km2 mining permit. The licence area includes the Angovia gold mine which operated between 1998 and 2003. The mine reportedly produced over 180,000 ounces of gold during this period by heap leaching some 2 million tonnes of oxide material. The infrastructure in the area is good and includes a hydroelectric dam six kilometres from the Angovia mine site. A measured and indicated JORC resource of 451 000 ounces and an inferred JORC resource of 44 000 ounces has so far been delineated.
Recently, the company announced the commencement of gold production at Angovia at an annualized rate of 40 000 ounces of gold by the end of this year.
Kalsaka, Burkina Faso
Kalsaka is located approximately 150km north west of Ouagadougou, the capital of Burkina Faso. A measured and indicated JORC resource of 634 000 ounces and inferred JORC resource of 157 000 ounces has been delineated so far. The resource has been demonstrated, by a feasibility study, to be technically amenable to open-pit mining and processing via heap leaching. Water, environmental and mining permits for the project have been granted. The mining permit is valid for twenty years.
Construction has commenced at Kalsaka and commissioning is expected to commence in Q3, 2008 with production estimated to reach 60 000 ounces on an annualized rate by the end of this year.
BAOMAHUN, SIERRA LEONE
The Baomahun Gold Project covers an area of about 137 km2 and is located about 180 kilometres east of Freetown, in the Southern Province of Sierra Leone. The geological setting is similar to the Lake Victoria goldfields in Tanzania.
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.
A measured and indicated JORC compliant mineral resource of 867,000 ounces of gold (8,933,000 tonnes grading 2.9 g/t Au) and inferred JORC compliant mineral resource of 486,000 ounces of gold (5,083,000 tonnes grading 3.0 g/t Au). A total JORC compliant mineral resource (measured, indicated and inferred) of 1,353,000 ounces of gold (14,016,000 tonnes grading 3.0 g/t Au) has so far been delineated.
On 17 July 2008, the Company announced that the Government of Sierra Leone had granted Baomahun Gold Limited, a 100 per cent owned subsidiary of the Company, a Mining Lease for 25 years over an area of 59.85sq kilometres.
Cluff Gold now holds 100 per cent of the Baomahun Gold Project. Cluff Gold announced on 4 August 2008 that it had acquired the outstanding 40 per cent interest in the project for US$21.8 million which was satisfied by the issue of 12,390,909 ordinary shares in the Company.