Cluff Gold plc
TSX : CFG
AIM : CLF

Cluff Gold plc

April 04, 2011 09:30 ET

Cluff Gold plc: Award of New Exploration Licence in Mali

LONDON, UNITED KINGDOM--(Marketwire - April 4, 2011) - Cluff Gold plc ("Cluff Gold" or the "Company") (AIM:CLF)(TSX:CFG), the dual AIM/TSX listed West African focused gold mining company, is pleased to announce that it has been awarded a new gold exploration licence in Western Mali (the "Mamoudouya" licence or the "Licence").

The Licence is located 300km west of Bamako, the capital city of Mali, in the highly prospective Mali Birrimian Kenieba Inlier Belt, which hosts several world class gold deposits including Randgold's Loulo Mine (M&I resources of 8.8Moz1) and Gounkoto Project (M&I resources of 3.6Moz2) together with AngloGold Ashanti's Sadiola Mine (M&I resources of 3.5Moz3).

The Licence covers an area of 109 sq. km and has a term of three years, renewable twice for consecutive periods of three years each.

Historical trenching across the 3.6km-long Mamoudouya Shear Zone with a 200+ppb gold-in-soils anomalism, has returned results of up to 24m @ 2.35g/t and 12m @ 2.13g/t. The interpretation of historical airborne geophysics also suggests that Mamoudouya is characterised by crosscutting north-northeast oriented structures deriving from the major Senegalo-Malian Shear; this is a similar structural setting as to that observed at the Loulo and Tabakoto gold mines. A 'grab sample' taken on the shear zone has returned results of 8.1g/t.

Cluff Gold has allocated a budget of US$1.5 million for exploration work at Mamoudouya during 2011, with ground geophysics and a trenching programme of 2,000m planned to define initial drill targets. Details of the Mamoudouya project can be found on the Company's website at www.cluffgold.com.

Peter Spivey, Chief Executive Officer of Cluff Gold, commented:

"The future of any mining company depends on securing prospective projects and we are delighted to have been granted these new exploration licences. Through an accelerated and aggressive exploration campaign in Mali as well as our four new licences in Eastern Burkina Faso, we hope to quickly ascertain the geological potential of these areas and demonstrate their potential for future development."

About Mali

Mali is the third largest gold producing country in Africa, with 50t (~1.6Moz) of gold produced in 2010.4 Recent discoveries include Gold Fields' Komana Project and Randgold's Gounkoto Project. Gold mining currently represents between 8% and 10% of Mali's gross domestic product, employing around 10,000 people.5

About Cluff Gold

Cluff Gold is a gold developer-producer with assets in West Africa. The Company generates significant cash flow through its Kalsaka gold mine in Burkina Faso. The Company remains focused on its objective of becoming 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 and a project pipeline of exploration licences in Burkina Faso and Mali, the Company aims to further increase its production profile with its highly prospective exploration work across all assets.

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 Kalsaka and Baomhaun, exploration and drilling results at Baomahun, future exploration at Mamoudouya, 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.

Peter Spivey is a "Qualified Person" within the definition of National Instrument 43-101 and has reviewed and approved the information contained within this announcement. Mr Spivey has not been able to verify the mineral resource information provided by companies other than Cluff Gold and such information is not necessarily indicative of the mineralisation on the Mamoudouya property. Mr Spivey (BSc, AusIMM) is the Chief Executive Officer of the Company.

1 Comprised of 0.9Moz (at 3.8g/t) of measured and 7.9Moz (at 4.7g/t) of indicated resources as per Randgold Resources' website as at the date hereof

2 Comprised of 3.6Moz (at 4.8g/t) of indicated resources as per Randgold Resources' website as at the date hereof

3 Comprised of 0.4Moz (at 1.4g/t) of measured and 3.0Moz (at 1.8g/t) of indicated resources as per AngloGold's Mineral Resource and Ore Reserve Report 2010

4 Mining Mali (www.mining-mali.com)

5 "Mali Tries to Lure Investors with New Mining Code" dated 1 Sep 2010, Mining Weekly

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

Contact Information

  • Cluff Gold plc
    J.G. Cluff - Chairman
    Carrie Lun - Investor Relations Manager
    +44 (0) 20 7340 9790
    or
    Pelham Bell Pottinger
    Investor Relations (Global)
    Lorna Spears
    Philippe Polman
    +44 (0) 20 7861 3232
    or
    Evolution Securities Limited
    Jeremy Ellis
    Tim Redfern
    +44 (0) 20 7071 4300
    or
    Farm Street Communications Ltd
    Press Relations (U.K.)
    Simon Robinson
    +44 (0) 7593 340 107
    simon.robinson@farmstreetmedia.com