Cluff Gold Plc – Baomahun Resource Increase
Wednesday, July 4th, 2007
Cluff Gold Plc announce a JORC compliant resource update on the Baomahun Gold Project, Sierra Leone. The total resource estimate is 1,160,000 ounces.
The resource estimate was prepared by Dr Simon Ingram, an independent resource geologist with extensive experience in the industry. Dr Ingram estimated all previously announced resources at Baomahun before they were audited by SRK Consultants.
The new resource estimation follows the recent completion of a 98 hole core drilling programme totalling 18, 400 metres covering a small portion of the twelve kilometre prospective Kangari Hills greenstone belt. The drilling was programmed to explore recently discovered mineralisation in the Fold Zone area and to infill between previous drilling enabling parts of the resource to be elevated into higher categories.
The company has now received assay results from 51 holes and has used this information to estimate the resource of 1,160 000 ounces grading 3.20g/t gold on the Eastern, Central, Western and Fold Zones as per the table below.
Mineralisation is open at depth and along strike on the four Zones.
Ore zone, Resource Category, Tonnes(t), Au(g/t), Au(Kg), Au(Oz)
East Indicated 528,000 4.8 3,000 82,000
Central Indicated 295,000 3.4 1,000 32,000
Total Indicated 823,000 4.3 4,000 114,000
East Inferred 3,051,000 4.5 14,000 443,000
Fold Inferred 1,638,000 3.1 5,000 161,000
Central Inferred 1,793,000 3.2 6,000 187,000
West_1 Inferred 1,461,000 2.0 3,000 94,000
West 2 Inferred 2,395,000 2.1 5,000 162,000
Total Inferred 10,338,000 3.1 33,000 1,047,000
Total All (ind.+Inf.) 11,161,000 3.2 37,000 1,161,000
Resources quoted at a 1g/t Au block cut off.
Drilling has now stopped, as a result of the onset of the annual wet season, after completion of 98 holes. However, additional assay results are expected from 47 holes which are currently being logged and analysed. The company expect to continue receiving assay results during July and August.
The preparation of an updated resource is planned, upon receipt of all the outstanding assay results.
The Baomahun licence area covers more than 12 kilometres of strike along the Kangari Hills greenstone belt. The airborne geophysical surveys undertaken in 2004 picked up extensive banded iron formation (BIF). This formation has been found to be intimately associated with high grade gold mineralisation in the drilled areas. Accordingly, future exploration and drilling will continue to use the BIF as a marker horizon for auriferous zones in the belt.
The Company recently appointed the Australian resource and mining consultant RSG Global and the South African Engineering and procuring consultant SENET to undertake a scoping study. The study will look at the various project development options. A site visit has been completed and the study report is expected in September 2007. The upgrading of the scoping study into a pre-feasibility study is planned for the last quarter of 2007.
Mr. Douglas Chikohora, Technical Director of Cluff Gold plc comments, ‘We are pleased with this significant increase in the resource estimate at Baomahun. It is also positive to note that this estimate is based on drilling carried out over a strike length of less than 25% of the prospective trend of 12 kilometres.
Therefore, there is considerable scope downdip of and laterally from the current resource area and we believe that there is potential to further increase the resource in the future with additional exploration and drilling. The planned completion in September of the scoping study marks a significant milestone in the development of the Baomahun Project.’