Amara Mining Regulatory News (AMA)

19 Mar 2008 07:00

Cluff Gold PLC19 March 2008 19 March 2008 AIM: CLF Cluff Gold plc (''Cluff Gold'' or the ''Company'') Gold Production, Mine Construction and Drilling Update Cluff Gold today announces an update on significant progress at its mainprojects in West Africa. Highlights: Angovia: (90% effective ownership) • First gold pour at Angovia on 14th March 2008 marked the end of the commissioning phase • Planned annualised production of 40,000 ounces Kalsaka: (78% effective ownership) • Kalsaka construction on schedule to pour gold Q2, 2008 • Planned annualised gold production of 60,000 ounces with significant potential to increase Baomahun: (60% effective ownership) • Cluff Gold announced (27 February 2008) conditional agreement to buy remaining 40% stake in Baomahun, which would increase ownership to 100% • Baomahun pre-feasibility drilling underway with three drill rigs on site • Seventy seven core holes totalling approximately 15,000 metres drilled since November 2007 • Assay results continue to confirm expectations with significant drill intersections being recorded both at depth and along strike of known mineralization • Drill hole results received included DDH 175 which intersected 55 metres grading 2.02g/t Au from 51 metres; DDH 187 intersected 22 metres grading 5.25g/t Au from 185 metres; DDH 191 interescted 77 metres @ 1.43g/t Au from 259 metres ; and DDH 193 which intersected 26 metres grading 6.09g/t Au from 216 metres. • New mineralised structures discovered As previously announced, it is expected that the Angovia and Kalsaka mines willcome into production at a low combined capital construction cost ofapproximately US$35 million. Neither of these projects is burdened by debt andthe Company remains unhedged. Douglas Chikohora, Technical Director of Cluff Gold commented "We are delightedwith the overall progress made by the Company since the last operational update.The first gold pour at Angovia marked the commencement of production for theCompany and Kalsaka is on schedule to commence full production during the secondhalf of 2008. The encouraging assay results that we are receiving from Baomahunare being incorporated into a resource update which will be announced in duecourse." Angovia Gold Project, Cote d'Ivoire: The end of the commissioning of the gold mine, whose commencement of operationswas announced on 24 January 2008, was marked by the pour of the first gold baron 14 March 2008. Production is now expected to be ramped up to the plannedannualised levels of 750,000 tonnes per annum ("tpa"). The Company recently co-sponsored a successful promotional seminar on the miningsector in Cote d'Ivoire in London. This was attended by various governmentofficials including H.E. Leon Emmanuel Monnet, Minister of Mines and Energy,Cote d'Ivoire. Kalsaka Gold Project, Burkina Faso: The development of the Kalsaka project is on course with production scheduled tostart in the second quarter of 2008. Most of the steel work and plant equipmenthas now been delivered to the site and the mining contractor has now commencedpre-stripping. Annualised production is expected to reach 60,000 ounces of goldin the second half of 2008. The current ore reserve estimates for Kalsaka of323,000 ounces were based on a gold price of US$525/ounce. New mine plans arebeing generated using a higher gold price and ore reserve estimates are expectedto increase, bringing the opportunity of increasing annualised production withminor modification to the processing plant. Baomahun Gold Project, Sierra Leone: The pre-feasibility drilling programme continued with a total of approximately15,000 metres drilled since November 2007. Assay results continue to confirmexpectations. The table below shows some of the assay results recently received. Hole ID Dip(0) Azimuth Intercept (g/t From (m) Zone Comments (0) Au)DDH173 45 207 6m @ 2.1g/t 133 Eastern DDH175 45 207 3m @ 1.73g/t 23 EasternDDH175 5m @ 1.19g/t 31DDH175 2m @ 1.24g/t 42DDH175 55m @ 2.02g/t 51 Includes 5m @ 7.62g/t Au from 92m DDH177 45 207 2m @ 1.51g/t 156 Eastern DDH179 45 207 2m @ 1.03g/t 125 EasternDDH179 23m @ 1.38g/t 136 Includes 4m @ 3.92g/t Au from 152mDDH179 2m @ 4.78g/t 207DDH179 2m @ 6.83g/t 230DDH179 14m @ 3.97g/t 269 Eastern Includes 5m @ 6.29g/t Au from270m DDH181 45 72 7m @ 10.38g/t 282 Central Includes 5m @ 14.03g/t Au from 282mDDH181 2m @ 2.14g/t 292DDH181 8m @ 7.63g/t 299 Includes 6m @ 9.67g/t from 300mDDH181 3m @ 1.88g/t 325 DDH183 45 72 2m @ 1.37g/t 248 CentralDDH183 7m @ 1.36g/t 303DDH183 14m @ 1.36g/t 320 Includes 2m @ 5.3g/t Au from 324m DDH184 45 207 3m @ 2.92g/t 84 EasternDDH184 2m @ 2.38g/t 160DDH184 2m @1.10g/t 168DDH184 5m @ 1.06g/t 172 DDH186 45 72 6m @ 5.182g/t 91 Eastern Includes 2m @ 12.88g/t Au from 91m DDH187 45 72 2m @ 2.03g/t 179 WesternDDH187 22m @ 5.25g/t 185DDH187 3m @ 1.29g/t 244 DDH188 46 212 6m @ 4.65g/t 52 EasternDDH188 2m @ 1.47g/t 85DDH188 4m @ 5.37g/t 122 DDH189 45 72 12m @ 2.99g/t 179 WesternDDH189 14m @ 1.14g/t 206DDH189 45m @ 1.05g/t 259 DDH190 45 212 2m @ 1.22g/t 119 EasternDDH190 9m @ 1.12g/t 143 DDH191 45 72 3m @ 1.21g/t 188 WesternDDH191 77m @ 1.43g/t 259 Includes 6m @ 4.15g/t Au from 321m DDH192 45 215 4m @ 2.46g/t 49 EasternDDH192 3m @ 1.92g/t 83DDH192 13m @1.84g/t 141 DDH193 45 72 26m @ 6.09g/t 216 Western Includes 9m @ 12.00g/t Au from 232m DDH194 45 207 5m @ 1.08g/t 97 EasternDDH194 2m @ 3.73g/t 110DDH194 2m @ 2.49g/t 167DDH194 3m @ 3.37/t 173 Includes 1m @ 8.17g/t Au from 175m DDH195 45 204 3m @ 2.38g/t 75 EasternDDH195 2m @ 1.79g/t 152DDH195 14m @ 5.25g/t 157DDH195 4m @ 2.58/t 203DDH195 2m @ 1.30g/t 215 DDH196 45 204 5m @ 1.44g/t 65 Fold AreaDDH196 6m @ 1.94g/t 99DDH196 3m @ 2.28g/t 109 DDH197 48 232 3m @ 2.27g/t 24 Fold AreaDDH197 2m @ 3.00g/t 62DDH197 2m @ 1.6g/t 100DDH197 12m @ 7.56g/t 107 includes 6m @ 12.90g/t Au from 110m A resource update for the project will be prepared in due course incorporatingthese assay results as well as the results obtained from the 47 holes drilledduring the previous drilling campaign in 2007. Qualified Persons: Douglas D Chikohora has reviewed and approved the information contained in thisannouncement. Douglas D Chikohora, Msc, MIMMM, CEng, is Technical Director ofthe Company. For further information, please contact: Cluff Gold plc WH Ireland Limited J.G. Cluff / Douglas Chikohora David Youngman Chairman / Technical Director Tel: +44 (0) 161 832 2174 Tel: +44 (0) 20 7340 9790 Seymour Pierce Limited Parkgreen Communications Charles Kernot Louise Goodeve / Justine Howarth Director Metals and Mining Tel: +44 (0) 20 7851 7480 Tel: +44 (0) 20 7107 8000 Notes to Editors: About Cluff Gold Cluff Gold plc is focused on the identification, acquisition and development ofgold deposits in West Africa that are amenable to open-pit mining and low costproduction techniques. The Company has made significant progress since its floatation on AIM inDecember 2004, increasing gold resources across its projects, expanding theproject portfolio and broadening the investor base to an increasinglyinternational audience. Mt. Yaoure, Cote d'Ivoire The Mt. Yaoure permit is located 40km northwest of Yamoussoukro, the politicalcapital of Cote d'Ivoire, and covers a surface area of 417km(2) including a 50km2 mining permit. The licence area includes the Angovia gold mine whichoperated between 1998 and 2003. The mine reportedly produced over 180,000ounces of gold during this period by heap leaching some 2 million tonnes ofoxide material. The infrastructure in the area is good and includes ahydroelectric dam six kilometres from the Angovia mine site. A measured andindicated JORC resource of 451 000 ounces and an inferred JORC resource of 44000 ounces has so far been delineated. Recently, the company announced the commencement of gold production at Angoviaat 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 ofBurkina Faso. A measured and indicated JORC resource of 634 000 ounces andinferred JORC resource of 157 000 ounces has been delineated so far. Theresource has been demonstrated, by a feasibility study, to be technicallyamenable to open-pit mining and processing via heap leaching. Water,environmental and mining permits for the project have been granted. The miningpermit is valid for twenty years. In January, 2008 the company announced the construction progress at Kalsakawhere production is estimated to reach 60 000 ounces on an annualized rate bythe end of this year. Baomahun, Sierra Leone. The Baomahun Gold Project covers an area of about 137 km2 and is located about180 kilometres east of Freetown, in the Southern Province of Sierra Leone. Thegeological setting is similar to the Lake Victoria goldfields in Tanzania.According to the terms of a joint venture agreement with the owner of Baomahun,Winston Mines Limited, Cluff Gold has recently entered into a conditionalagreement to acquire from Mr. Winston the 40 per cent interest in the projectwhich it does not currently own. The consideration for the acquisition will beUS$21.8 million which will be satisfied by the issue of approximately 12.4million shares in the Company. The acquisition is conditional inter alia on theapproval of our recent application for a Mining Lease at Baomahun. An indicatedJORC resource of 115 000 ounces and inferred JORC resource of 1,040,000 ounceshas so far been delineated at Baomahun, though more than 70% of the definedmineralised zone is yet to be drilled. A Full Technical Glossary can be found on the company website at: http://www.cluffgold.com/pages/projects_glossary.asp This information is provided by RNS The company news service from the London Stock Exchange