Cluff Gold plc
AIM : CLF
TSX : CFG

Cluff Gold plc

May 17, 2011 09:33 ET

Cluff Gold plc: Baomahun Exploration Update: Confirmation of New Discovery

LONDON, UNITED KINGDOM--(Marketwire - May 17, 2011) - Cluff Gold plc (AIM:CLF)(TSX:CFG) ("Cluff Gold" or the "Company"), the dual AIM/TSX listed West African focused gold mining company, is pleased to report that assay results from the first exploration drill hole targeting the versatile time domain electro-magnetic ('VTEM') anomalies at Baomahun in Sierra Leone have now been received.

The promising assay results confirm the Company's expectation of finding gold intersects in Target 5 of the Baomahun project area. A diagram showing each of the targets in the project area can be found in the Baomahun section of the Company's website at www.cluffgold.com.

The drill results confirm the association between gold and the sulphide minerals identified by the conductive anomalies recognised in the VTEM survey. This is similar to the relationship seen in the resource area. The intercepts from the first hole assayed are as follows:

  • 5 metres @ 1.59g/t from 29 metres
  • 2 metres @ 5.77g/t from 81 metres (including 1m @ 11.1g/t)

Although the widths and grades are not of themselves comparable with the resources delineated at Baomahun to date, these first results are fundamental to the along strike exploration programme at Baomahun, and support the strategy to follow up on the VTEM survey anomalies.

As at 15 May 2011 a total of 2,938m has been drilled in 19 holes within three of the seven targets (numbered 5, 4 and 2) originally identified. Further results will be announced once received.

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

"We are extremely encouraged with the first results received from the drill programme targeting the VTEM anomalies, which confirm our thesis that the conductive anomalies identified from the geophysical survey are associated with gold. We believe that this is a significant milestone for the project, representing the inaugural results outside of the currently defined resource area.

Whilst we cannot predict future exploration results, with the link between conductive anomalies and gold now clearly established, the project has taken a major step forwards in enabling targeted, cost-effective exploration.

Further work is required to understand the geology in the remainder of the Baomahun project area, and our teams are working hard to fulfil this goal. We look forward to receiving further results in due course."

Quality Assurance and Quality Control

Drill cores for assaying were taken at a maximum of one metre intervals and were cut with a diamond saw. One half of the core was placed in sealed bags and sent to the Company's sample preparation facility at Baomahun, Sierra Leone. The core samples were then crushed to minus 4mm and split, with approximately 1.5kgs of sample pulverised down to 95% passing 106 microns. Approximately 120 grams of the pulverised sample were then shipped to the SGS Laboratories (which are independent of the Company) in Tarkwa, Ghana, where the samples were analysed for gold by fire assay using a 50g charge. As part of the Company's QA/QC procedures, internationally recognised standards and blanks were inserted into the sample batches.

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, 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.

Mr. Andrew Asante, (M.Sc., AusIMM), Resource Manager for Cluff Gold plc and a "qualified person" as such term is defined in National Instrument 43-101, has reviewed the contents of this press release. Mr. Asante has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained herein.

Readers may refer to "Technical Review of the Baomahun Gold Exploration Project, Sierra Leone", August 12, 2010

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

Contact Information

  • Cluff Gold plc
    J.G. Cluff
    Chairman
    +44 (0) 20 7340 9790

    Cluff Gold plc
    Carrie Lun
    Investor Relations Manager
    +44 (0) 20 7340 9790
    www.cluffgold.com

    Evolution Securities Limited
    Jeremy Ellis
    +44 (0) 20 7071 4300

    Evolution Securities Limited
    Tim Redfern
    +44 (0) 20 7071 4300

    Pelham Bell Pottinger
    Lorna Spears
    Investor Relations (Global)
    +44 (0) 20 7861 3232

    Pelham Bell Pottinger
    Philippe Polman
    Investor Relations (Global)
    +44 (0) 20 7861 3232

    Farm Street Communications Ltd
    Simon Robinson
    Press Relations (U.K.)
    +44 (0) 7593 340 107
    simon.robinson@farmstreetmedia.com