8 Mar 2010 07:00
8 March 2010 AIM:CLF / TSX:CFG
Cluff Gold plc
("Cluff Gold" or the "Company")
Update on Resource, Reserves and Brownfield Exploration Plans
Cluff Gold plc, the AIM/TSX listed West African-focused gold mining company, announces the 31 December 2009 resource and reserve position at its operating mines in Burkina Faso and Cote d'Ivoire, together with exploration plans for these projects. The Company intends to investigate further the significant oxide and sulphide mineralisation potential at both operations.
HIGHLIGHTS
Kalsaka (78% owned), Burkina Faso:
·; Reserves at Kalsaka at 1 January 2010 contain 298,000ozs of gold, sufficient for a further three and a half years of production at the current plant capacity of 1.6Mtpa.
·; Follow-up drill programme focusing on four near-plant prospects where previous drilling has shown potential for additional resources.
·; A regional exploration programme will focus on a number of structures within the 20 kilometre prospective corridor that are considered to have the potential to host a resource at least equivalent in magnitude to that already defined at Kalsaka.
·; A recent review of historical drill data shows that there is potential for sulphide mineralisation below the current oxide resources. For example, hole KRCS 1093 intersected 16m @ 4.73 g/t Au from 133 metres downhole depth with the last three metres grading 10.23 g/t Au.
Angovia (90% owned), Cote d'Ivoire:
·; Reserves at Angovia at 1 January 2010 contain 89,000ozs of gold, sufficient for a further two years of production at the current plant capacity of 1.08Mtpa.
·; New exploration programme is planned to target gold deposits close to the processing plant.
·; Drill targets include the historically known Kongonza prospect with known mineralisation as in drill holes:
o ARC039, which intersected 16m @ 3.80g/t Au from 79 metres downhole depth
o ARC042, which intersected 14m @ 4.41 g/t Au from 52 metres downhole depth, as announced on 14 November 2005.
·; Further potential for long term exploration of other prospects indicated by gold mineralisation in a number of holes including ARC024 which intersected 30m @ 3.64 g/t Au including 21m @ 4.58g/t Au in sulphides as announced in November 2005.
Douglas Chikohora, Technical Director, commented:
"The full commissioning of our operations last year both marked a significant milestone for the Company and was a critical step in achieving our production rate goals. Our operational strategy for the year is to focus on proving up the significant additional gold potential which exists around our current operations by further exploration in the surrounding areas of interest. This strategy, funded from operational cash flow, will enable Cluff Gold to replace the reserves and resources at the mines as they are depleted and realise a longer mine life."
Technical Update
Kalsaka Gold Mine
The resource and reserve position for the Mine, in accordance with NI 43-101, is summarised in the tables below:
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| KALSAKA GOLD MINE | |||||
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| RESOURCES as at 31/12/2009 at 0.5g/t Au cut off | |||||
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| TONNAGE | GRADE | OUNCES | |||
| OXIDE & TRANS* | MEASURED | 3,921,000 | 1.7 | 212,000 | |||
| INDICATED | 4,865,000 | 1.5 | 230,000 | ||||
| INFERRED | 1,023,000 | 1.3 | 44,000 | ||||
| SULPHIDE | MEASURED | 155,000 | 1.8 | 9,000 | |||
| INDICATED | 1,012,000 | 1.7 | 55,000 | ||||
| INFERRED | 2,311,000 | 1.5 | 113,000 | ||||
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| KALSAKA GOLD MINE |
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| RESERVES as at 31/12/2009 @ US$ 950/oz gold price and 0.6 g/t Au cut off |
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| TONNAGE | GRADE | OUNCES |
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| OXIDE & TRANS* | PROVED | 3,220,000 | 1.7 | 177,000 |
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| PROBABLE | 2,378,000 | 1.6 | 121,000 |
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| 5,598,000 | 1.7 | 298,000 |
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\* The transitional material constitutes less than 10% of the reserves and are treatable in the existing processing plant with minor modifications.
The reserves represent an existing mine life of three and a half years at the current throughput of 1.6Mtpa. The original feasibility study was based on a throughput of 1.2Mtpa.
Exploration plans for 2010 will primarily target the known drill-tested prospects close to the existing processing plant. The initial programme is for 10,000 metres of reverse circulation drilling which is expected to begin in H2 of 2010 when a rig is available. The planned drilling will also cover the nearby Yako licence where an inferred JORC compliant resource of 153,000 ounces has been independently estimated, as announced in December 2004.
Regional exploration is planned to cover the prospective trends identified from historical exploration work. Analysis of this information suggests that the shear structures and adjacent stratigraphy have the potential to host a resource at least equivalent in magnitude to that already defined at Kalsaka.
In addition to the known oxide mineralisation in the area, a recent review and interpretation of historical drill data shows the potential for sulphide mineralisation down-dip of the current oxide resources. For example, hole KRCS 1093, which stopped in mineralisation, intersected 16m @ 4.73 g/t Au from 133 metres downhole depth with the last three metres grading 10.23 g/t Au.
Angovia Gold Mine
The resource and reserve position for the Mine, in accordance with NI 43-101, is summarised in the tables below:
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| ANGOVIA GOLD MINE | |||||
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| RESOURCES as at 31/12/2009 at 0.5 g/t Au cut off | |||||
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| TONNAGE | GRADE | OUNCES | |||
| OXIDE & TRANS* | MEASURED | 2,698,000 | 1.3 | 110,000 | |||
| INDICATED | 2,101,000 | 1.3 | 85,000 | ||||
| INFERRED | 525,000 | 1.5 | 25,000 | ||||
| SULPHIDE | MEASURED | 3,203,000 | 1.5 | 155,000 | |||
| INDICATED | 1,982,000 | 1.7 | 108,000 | ||||
| INFERRED | 297,000 | 1.6 | 16,000 | ||||
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| ANGOVIA GOLD MINE |
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| RESERVES as at 31/12/2009 @US$950/oz gold price and 0.6 g/t Au cut off |
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| TONNAGE | GRADE | OUNCES |
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| OXIDE & TRANS* | PROVED | 1,330,000 | 1.3 | 56,000 |
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| PROBABLE | 854,000 | 1.2 | 33,000 |
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| 2,184,000 | 1.3 | 89,000 |
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\* The transitional material constitutes less than 10% of the reserves and are treatable in the existing processing plant with minor modifications.
The reserves represent an existing mine life of about two years at the current throughput of 1.08Mtpa.
The Company is targeting additional resources of some 0.75Mt grading 1.5 g/t which could be converted to reserves following more plant modifications. A technical study is currently underway and an update will be released once this work is finalised.
The exploration plans for 2010 focus on near surface gold-in-laterite and gold-in-saprolite deposits. These ore types can be treated in the existing processing plant. Up to 5,000 metres of reverse circulation drilling is planned from Q2 2010 targeting both gold-in-laterite and gold-in-saprolite deposits.
In addition to the known oxide mineralisation in the area, Angovia has a measured and indicated sulphide resource of over 250,000ozs. Drill data indicates clear potential for additional sulphide mineralisation underneath the existing oxides which represent long term exploration potential for the mine.
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, Sierra Leone and Mali. 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 Cote d'Ivoire and from 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 forwards with the pre-feasibility study at its wholly-owned Baomahun project in Sierra Leone where a total mineral resource estimated to contain over 2.0 million ounces of gold, in accordance with NI 43-101, has been announced to date.
| 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
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| Joanna Longo Investor Relations (Canada) The Equicom Group +1 416 815 0700 ext 233 jlongo@equicomgroup.com | Simon Robinson Investor Relations (U.K.) Farm Street Communications Ltd +44 (0) 7593 340 107 simon.robinson@farmstreetmedia.com |
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE.
Douglas D Chikohora has reviewed and approved the geological information contained within this announcement in the context of the AIM Guidelines for Mining and Oil Companies. All reserve and resource estimates have been estimated in accordance with applicable standards. Mr Chikohora (MSc., MIMMM., CEng) is the Technical Director of the Company.
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.
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any person is, or becomes, "interested" (directly or indirectly) in 1% or more of any class of "relevant securities" of Cluff Gold, all "dealings" in any "relevant securities" of that company (including by means of an option in respect of, or a derivative referenced to, any such "relevant securities") must be publicly disclosed by no later than 3.30 pm (London time) on the London business day following the date of the relevant transaction. This requirement will continue until the date on which the offer becomes, or is declared, unconditional as to acceptances, lapses or is otherwise withdrawn or on which the "offer period" otherwise ends. If two or more persons act together pursuant to an agreement or understanding, whether formal or informal, to acquire an "interest" in "relevant securities" of Cluff Gold, they will be deemed to be a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant securities" of Cluff Gold by Cluff Gold, or by the potential offerors, or by any of their respective "associates", must be disclosed by no later than 12.00 noon (London time) on the London business day following the date of the relevant transaction.
A disclosure table, giving details of the companies in whose "relevant securities" "dealings" should be disclosed, and the number of such securities in issue, can be found on the Takeover Panel's website at http://www.thetakeoverpanel.org.uk.
"Interests in securities" arise, in summary, when a person has long economic exposure, whether conditional or absolute, to changes in the price of securities. In particular, a person will be treated as having an 'interest' by virtue of the ownership or control of securities, or by virtue of any option in respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on the Panel's website. If you are in any doubt as to whether or not you are required to disclose a "dealing" under Rule 8, you should consult the Panel.