29 Jun 2010 07:00
29 June 2010 AIM: CLF / TSX: CFG
Cluff Gold plc
("Cluff Gold" or the "Company")
Result of the Annual General Meeting and new Board appointments
Cluff Gold, the dual AIM/TSX listed African focused gold mining company is pleased to announce that all the resolutions proposed to shareholders at the Company's AGM held on 28 June 2010, were duly passed.
A copy of the Chairman's statement made at the meeting is set out below.
"The last twelve months have been characterised by advances in value at our three projects. These have been complemented by a strengthening of our management team with the appointment of Peter Spivey, our Chief Operating Officer based in West Africa, and of Pete Gardner our Chief Finance Officer (both of whom have been appointed to the Board today). Catherine Apthorpe has been appointed Company Secretary and Commercial Manager.
The two producing mines, Kalsaka in Burkina Faso and Angovia in the Ivory Coast, are both profitable and we are now able to turn our attention to drilling programmes designed to extend the reserves at both mines. Drilling targets have been selected and we are confident that, as a result, the life of both these operations will be significantly extended. In addition, in Burkina Faso we shall be mounting a drilling campaign at Yako, a satellite deposit of Kalsaka.
It is in Sierra Leone that we look to take our forecast 2010 annual production of just over 100,000 ounces up by a further 150,000 ounces to 250,000 per annum in 2013. Our property at Baomahun is at an important stage and I was hoping to announce this morning the details of the scoping study on which we have been working. However, we must not make any announcements without the authority of the individual consultants involved in the technical audit. Whilst we are unable to make the announcement this morning, we expect to do so this week. Suffice to say we are now commencing the full bankable document, which I anticipate will be completed by the second quarter of next year. This study will focus on many issues such as environmental studies and an analysis of the practicality of using hydro electric power in addition to heavy fuel oil, thereby rendering the project as green as possible whilst (assuming a favourable conclusion) significantly adding to the cash flow through lower power costs. This will be accompanied by additional exploration drilling to test the undeniable opportunities for adding resources along the twelve kilometre mineralised trend; of which to date we have drilled only three kilometres revealing over 1.4 million ounces of gold in measured and indicated resources in accordance with NI 43-101 (508,000 ounces at 2.92g/t measured; 909,000 ounces at 2.93 g/t indicated; plus an additional 1,033,000 ounces at 2.64g/t inferred). This is at a discovery cost of only US$8 per ounce. Clearly with the gold price at a level of US$1,200 an ounce it needs little consideration to see the sense of finding more ounces if we can do so at such a low cost. Indeed I would say that it is imperative that we do so. Our task should be eased by analysis of the Versatile Time-Domain Electromagnetic (VTEM) survey which we have just received that certainly identifies prospective locations for further exploration.
As we gear up to a development programme we are raising our profile in Sierra Leone with the appointment of a new Country Manager. He is a Sierra Leonean gentleman with many years' experience in the local mining industry. We shall also be acquiring a new office and are presently searching for an appropriate project manager.
You will be aware that our strategy has been to confine ourselves to these three projects, and we shall continue to do so until the Company is producing the target of 250,000 ounces to which I alluded. Development costs at Baomahun will be in the range of US$200 million. We believe that this is indeed a world class deposit and we are presently focussed on the most appropriate manner in which to obtain such finance.
Looking back, if I may, over the last thirty five years of my experience it is remarkable how companies in which I have been involved, have been in the vanguard of African development particularly when the concept of African investment was much more controversial. They developed mines in Zimbabwe and Ghana, and discovered what is now the largest gold discovery since the Second World War: the Geita mine in Tanzania. Now Cluff Gold is poised to operate three gold mines in West Africa, a destination which has suddenly evolved as one of the most compelling in the world benefitting from excellent geology, French and English legal systems, and Governments which are well disposed to foreign investment.
Mining is certainly one of the most demanding of businesses but it still offers some of the most dramatic returns. It is now our task to ensure that we can deliver such returns."
END OF STATEMENT
New Appointments
In terms of the appointment of Peter John Spivey (52) and Peter Andrew Stuart Gardner (37) to the Board, there is no other information that is required to be disclosed pursuant to Schedule 2 paragraph (g) of the AIM Rules, save as set out below:
Peter Spivey has no current additional appointments. In the last 5 years he held directorships in Mineral Deposits Operations Senegal SA, Sabodala Gold Operations SA and Grande Côte Operations SA.
Pete Gardner is currently a director of MPD Consulting Limited. He is not a director of any other company nor has he been in the last 5 years.
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 1,033,000ozs at 2.64g/t inferred).
For further information, please contact:
| Cluff Gold plc
J.G. Cluff - Chairman and Chief Executive Catherine Apthorpe- Commercial Manager 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 Kalsaka and Baomahun, 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.