Cluff Gold plc
TSX : CFG
AIM : CLF

Cluff Gold plc

March 15, 2011 05:30 ET

Cluff Gold plc: Baomahun Exploration Update

LONDON, UNITED KINGDOM--(Marketwire - March 15, 2011) - Cluff Gold plc (TSX:CFG)(AIM:CLF) ("Cluff Gold" or the "Company"), the dual AIM/TSX listed West African focused gold mining company, announces an exploration update at its wholly-owned Baomahun gold project in Sierra Leone following on from the results of the airborne versatile time domain electro-magnetic survey ("VTEM Survey") announced on 1 December 2010.

HIGHLIGHTS

  • The VTEM Survey identified seven new highly conductive drill targets, interpreted to occur close to surface
  • A trenching programme focused on the seven drill targets is ongoing, with a total of 1,049 metres completed across three targets to date. Initial assay results are expected before the end of May
  • The first exploration drilling rig has arrived on site with work commencing in the Zone 5 prospect, as part of the initial 6,000 metre diamond drilling programme
  • Two further drilling rigs are expected to arrive on site during March and April 2011 to further accelerate the drilling campaign, which is expected to climb to a rate of 2,000 metres per month
  • Initial results from the drilling campaign are expected in Q2 2011
  • Two further drilling rigs are currently completing the in-fill drilling programme as part of the feasibility study at the Baomahun deposit. From May 2011, these rigs are then scheduled for exploration work to further accelerate the drilling programme based on drilling results

A new VTEM interpretation map, detailing the various zones being targeted, can be found on the Company's web site at the following link:

http://www.cluffgold.com/site/CLUF/Templates/General.aspx?pageid=108&cc=GB.

The Baomahun project in Sierra Leone is the Company's flagship project, with 1.4Moz of measured and indicated resources estimated to date (0.5Moz measured comprising 5.5Mt at 2.9g/t and 0.9Moz indicated comprising 9.6Mt at 2.9g/t) and a further 1.0Moz of inferred resources (comprising 12.2Mt at 2.6g/t)(1).

Baomahun's current resource base is contained in an area of approximately 2 sq. km while the total project licence area is 136 sq. km. Gold in the existing resource area is known to be associated with pyrrhotite, a highly conductive sulphide mineral. The VTEM Survey was completed in 2010 to identify highly conductive drilling targets within the remainder of the Company's licence area. The first exploration drill hole completed intersected similar sulphide minerals as those encountered within the resource area, with the presence of up to 3% sulphides (mainly arsenopyrite and pyrrhotite) in the rocks intersected. Given the association of such sulphide material with gold mineralisation in the current resource area, this represents a positive start to the VTEM target follow-up.

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

"We are delighted to be able to announce that further exploration drilling has commenced at Baomahun. A major part of our strategy is to enhance value at Baomahun and prove the significant potential for mineralisation along strike from the existing resource. With five drill rigs due to be operating at Baomahun during Q2 2011, this represents the most ambitious drilling programme undertaken to-date at Baomahun. We look forward to reporting the results from this exploration work in due course."

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, the Company aims to further increase its production profile with its highly prospective exploration work in the region.

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 Angovia, Kalsaka and Baomhaun, 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.

The results of the VTEM Survey were previously announced in the news release dated 1 December 2010 entitled "Final VTEM Results for Baomahun Gold Project – Seven New Drill Targets Confirm Demonstrable Upside". 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 (BSc, AusIMM) is the Chief Executive Officer of the Company.

(1) As per the Company's NI 43-101 compliant report Technical Review of the Baomahun Gold Exploration Project, Sierra Leone, dated 12 August 2010 as filed on SEDAR.

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
    or
    Cluff Gold plc
    Pete Gardner
    Finance Director
    +44 (0) 20 7340 9790
    or
    Evolution Securities Limited
    Rob Collins
    +44 (0) 20 7071 4300
    or
    Evolution Securities Limited
    Tim Redfern
    +44 (0) 20 7071 4300
    or
    Pelham Bell Pottinger
    Lorna Spears
    Investor Relations (Global)
    +44 (0) 20 7861 3232
    or
    Pelham Bell Pottinger
    Philippe Polman
    Investor Relations (Global)
    +44 (0) 20 7861 3232
    or
    Farm Street Communications Ltd
    Simon Robinson
    Press Relations (U.K.)
    +44 (0) 7593 340 107
    simon.robinson@farmstreetmedia.com