LONDON, Aug. 14, 2012 -
Cluff Gold (AIM:CLF) (TSX:CFG), the dual AIM/TSX-listed West African focused gold mining company, is pleased to announce further significant sulphide drilling results from its Yaoure Project in Côte d'Ivoire.
HIGHLIGHTS:
- Drill results to date confirm the potential for a large, moderate grade sulphide deposit underlying the previously mined oxide resources at Yaoure
- Phase 3 of Yaoure drilling programme expanded by approximately 80% following encouraging initial results with four diamond drill rigs now on site
- All of the 53 holes reported since 19 January 2012 have encountered mineralisation
- Targeting continuous, mid-grade (1-1.5g/t), shallow-dipping zones in order to delineate a large scale sulphide orebody
- Higher grade cross-cutting sub-vertical veins should enhance the overall grade of the orebody
- Significant intercepts including:
-- 11.47m at 2.45 g/t from 135.65m (lower zone, CMA North) in hole YDD0054
-- 7.05m at 3.15 g/t from 106.78m (upper zone, CMA Central) in hole YDD0061
-- 9.14m at 4.28 g/t from 91.42m (upper zone) and 28.49m at 1.23 g/t from 126.60m*(lower zone, CMA Central) in hole YDD0065
-- 10.34m at 5.58 g/t from 542.75m in hole YDD0056
- Inferred resource estimate targeted for Q4 2012
Peter Spivey, Chief Executive Officer of Cluff Gold, commented:
"The expansion of our third phase of drilling at Yaoure is testament to our confidence in the project's potential. We expect the remaining 20 holes to be completed by late October and we are aiming to update our sulphide resources at Yaoure in Q4 2012. The location of the project, situated close to existing infrastructure, an abundant water supply and with the opportunity for cheap and reliable hydro-electric power, means that the resource hurdle that the Company has to overcome is much lower. Furthermore, by defining a sizeable resource at Yaoure, Cluff Gold will achieve greater flexibility in its portfolio of assets and will be one step closer to achieving its goal of becoming a mid-tier producer."
Drilling Strategy
The drilling results announced today focus on the sulphide potential of Yaoure Central, where the current measured and indicated sulphide resources total 292,000 ounces (5.6Mt at 1.6g/t)1. This mineral resource estimate is based on previous RC drilling typically extending down to approximately 100m below the original surface (60m below the current pit floor).
Following the encouraging exploration results at Yaoure announced on 19 June 2012, Cluff Gold has continued to progress its wide-spaced drilling programme with the objective of outlining the extent of the open-pittable sulphide resources around Yaoure Central, over an area of 2.1km in a N-S direction by up to 1.4km in an E-W direction, mainly on a 200m grid spacing. It is expected that this phase of drilling, Phase 3, will be completed in late October and the Company plans to delineate an inferred resource in Q4 2012.
The first phase of diamond drilling at Yaoure Central totalled 1,967m over 23 drill holes collared within the existing Yaoure Central pit. As previously reported, the results confirmed the width and grade of the main mineralised zone (the Main Zone) reported from historic RC results (30m at 3.64g/t), with the aggregate composite results being 28.37m at 3.24 g/t from 35.30m in YDD0021 and 31.60m at 1.57 g/t from 36.80m in YDD0014.
The second phase of diamond drilling totalled 6,442m over 23 holes. It tested the continuity of the north-south trending structures which dip to the east at between 25 and 45 degrees, over a 900m strike length and up to 340m across strike. These holes were all drilled to the west from the east of the current pit, with a typical spacing of 100m and stepping back between approximately 100m and 340m. The results from 18 of the 23 holes were reported on 19 June 2012. The results from the remaining 6 holes are reported in Appendix 1. The highlight of the Phase 2 results (first 18 holes) was the discovery of significant new near-surface mineralisation in the 200-250m gap between the Cluff Gold pit to the west and the CMA North pit to the east. This confirmed that mineralisation extends over a width on surface of at least 650m in an east-west direction.
Encouraging initial results from Phase 3 have led Cluff Gold to expand the outline drilling programme from 20 holes over 8,000m testing an area of 1.9 km by 0.9 km to 36 holes over 14,300m. The enlarged outline programme will test an area of 2.1km in a N-S direction along strike by up to 1.4km in an E-W direction across strike. It encompasses the CMA pits to the east. CMA reportedly extracted some 1.9 million tonnes (Mt) of oxide ore from 1999 to 2003 with a mean plant feed grade of 3.9g/t from a series of three open pits which extended to a maximum depth of 60m below surface. Phase 3 drilling began in early May and 16 holes (6,293m) have been drilled to date. Of the 16 holes, 12 tested both the mineralisation below the CMA pits and the continuity from the west of the underlying Yaoure Central pit mineralisation at depth and four holes tested only the Yaoure Central pit mineralisation at depth. Results for the first seven holes have been received and are reported in Appendix 2. Results of the remaining holes will be announced once received.
A map showing the location of the Yaoure project and the various prospects thereon, together with a drilling map, is set out on the Company's website at http://www.cluffgold.com/Operations/Yaoure.
Results
In line with the previously reported drilling results from Phase 1 and Phase 2, these initial results from Phase 3 confirm the potential for a large-scale sulphide deposit underlying the previously mined oxide resources at Yaoure. Cluff Gold's focus is on the wider, moderate-grade, shallow-dipping zones of mineralisation where continuity is being established. It is expected that the thinner, higher grade sub-vertical cross-cutting veins with frequent visible gold will enhance the overall grade of the orebody. However, since the continuity of these over any meaningful distance would require costly closed-spaced drilling, they are not the primary target at this stage of the exploration programme.
The Phase 3 drilling has established that the mineralisation in the CMA pits typically dips at 30 to 40 degrees to the east in the CMA North and Central pits and to the southeast in the CMA South pit. The CMA North pit and northern end of the CMA Central pit (hole YDD0065) mineralisation shows good continuity within a 36 to 64m wide shear zone along a strike length of at least 650m. Within the shear zone, two mineralised zones were intersected in each hole with 24 to 33m of waste between the two zones. For the purposes of this release we have aggregated a number of intersections. This is done on the basis that the mineralisation forms a single geological zone with a minimum grade of 0.4g/t. Internal waste below this grade is included in the calculation of the weighted average grade of the intersection. In some cases this waste intersection is greater than 2m which could ultimately be mined selectively, increasing the average grade of the material mined. Below are some of the significant intersections**:
- YDD0054 CMA North: 5.17m at 2.06 g/t from 103.78m and 11.47m at 2.45 g/t from 135.65m
- YDD0055 CMA North: 4.83m at 1.60 g/t from 97.72m and 9.92m at 1.84 g/t from 126.62m
- YDD0061 CMA North: 7.05m at 3.15 g/t from 106.78m and 4.47m at 2.54 g/t from 138.14m
- YDD0065 CMA Central: 9.14m at 4.28 g/t from 91.42m and 28.49m at 1.23 g/t from 126.60m*
- YDD0056 CMA Central: 9.38m at 4.88 g/t from 126.63m
- YDD0058 CMA South: 31.70m at 0.50 g/t from 147.93m*
*Aggregate intersections
**Holes listed in location order going from north to south.
Significant intercepts in holes targeting mineralisation in the Yaoure Central pit at depth to the east include:
- YDD0043: 8.88m at 1.01 g/t from 126.42m and 37.03 at 1.11 g/t from 193.55m*
- YDD0046: 5.70m at 3.79 g/t from 89.77m and 9.59m at 1.77 g/t from 197.82m
- YDD0051: 35.09m at 1.51 g/t from 59.35m* (including 6.20m at 3.91 g/t from 59.35m and 2.74m at 6.72 g/t from 68.59m)
- YDD0053: 6.86m at 1.42 g/t from 251.17m
- YDD0054: 6.17m at 9.06 g/t from 421.67m
- YD0055: 7.60m at 1.42 g/t from 302.57m, 16.72m at 1.77 g/t from 360.82m and 6.43m at 1.19 g/t from 425.12m
- YDD0056: 10.34m at 5.58 g/t from 542.75m
- YDD0063: 9.00m at 2.46 g/t from 318.37m
Significant intercepts in the structural holes targeting both shallow easterly dipping and sub-vertical mineralised structures and veins in the northern part of the Yaoure Central pit include:
- YDD0059: 6.51m at 9.39 g/t from 40.92m and 8.15m at 1.01 g/t from 74.07m
- YDD0060: 4.67m at 3.32 g/t from 36.97m and 17.80m at 4.44 g/t from 111.88m
- YDD0062: 4.90m at 4.00 g/t from 23.60m, 12.44m at 1.16 g/t from 50.46m, 6.33m at 3.88 g/t from 76.88m and 44.72m at 1.39 g/t from 188.65m*
Logging of oriented core indicates that, although there are sub-vertical cross-cutting mineralised veins, the majority of mineralisation at depth below both the Yaoure Central and CMA pits occurs in a series of altered (pyritised, silicified, sericitised and carbonatised) zones with abundant quartz veins which dip to the east (to the southeast in the case of CMA South) at between 25 and 45 degrees. Mineralisation within these altered and veined zones occurs as both shallow dipping veins and sub-vertical (ladder) veins.
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, where the production profile has been enhanced by the recent acquisition of the neighbouring Sega project. 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 135,000oz of gold per annum, with significant exploration potential along strike. In addition, the Company is also exploring the significant sulphide potential at its Yaoure project in Côte d'Ivoire. With its experience of bringing new mines into production and a project pipeline spanning Burkina Faso, Côte d'Ivoire and Mali, the Company aims to further increase its production profile with its highly prospective exploration work across all assets. For more information, please visit www.cluffgold.com.
This report includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.
All statements other than statements of historical fact included in this report, including, without limitation, the positioning of the Company for future success, statements regarding exploration, drilling results, resource calculations and potential future production at Yaoure, 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, the Company's ability to delineate sufficient sulphide resources for the development of a CIL/CIP operation, 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 diamond drilling programme at Yaoure was undertaken by two independent drilling contractors. Drill cores for assaying were taken at a maximum of two metre intervals and were cut with a diamond saw with one-half of the core placed in sealed bags and sent to either Intertek Minerals Ltd in Accra, Ghana (holes YDD0055 to YDD0065) or to the SGS sample preparation facility in Yamoussoukro, Côte d'Ivoire, prior to fire assay at the SGS laboratory in Tarkwa, Ghana (holes YDD0040 to YDD0054). The core samples were crushed down to minus 2 mm, with half the sample then being pulverised down to 85% passing 75 microns, prior to analysis for gold by fire assay using a 50 g sample. As part of the Company's QA/QC procedures, internationally recognised standards, duplicates and blanks were inserted. Both of the laboratories used are independent of the Company.
Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained herein, and reviewed and approved the information contained within this announcement. Mr Brown (MIMMM) is the Group Exploration Manager.
References
1 Encompassed within the 169,000oz (3.4Mt at 1.6g/t) in measured resources and 123,000oz (2.2Mt at 1.7g/t) in indicated resources set out in the Company's 2010 Annual Report. See also the technical report titled, "Technical Review of the Angovia Gold Mine, Mount Yaoure, Côte d'Ivoire" dated 16 October 2008 and filed on SEDAR.
Appendix 1: Remaining Phase 2 Results
Hole ID From To Interval Grade UTM UTM Elevation Azi-
muth Dip
(m) (m) (m) (1) (g/t) East North UTM RL
YDD0040 80.22 82.60 2.38 1.29 221038 777386 249 270 -60
115.26 120.26 5.00 0.85
268.27 270.27 2.00 1.21
315.30 320.40 5.10 1.44
YDD0043 54.30 57.40 3.10 1.02 221039 777086 255 270 -60
126.42 135.30 8.88 1.01
172.34 176.24 3.90 2.26
193.55 230.58 37.03 1.11 (2,3)
including 193.55 200.70 7.15 0.62
and 206.88 213.28 6.40 2.22
and 219.28 225.58 6.30 3.05 (3)
and 228.58 230.58 2.00 0.45
253.41 257.80 4.39 1.01
276.48 279.08 2.60 0.51
YDD0046 89.77 95.47 5.70 3.79 221088 777487 246 270 -60
128.93 133.93 5.00 1.72
173.64 180.51 6.87 1.28
197.82 207.41 9.59 1.77 (3)
234.74 237.82 3.08 0.76
YDD0049 110.88 117.38 6.50 0.58 220925 777686 235 270 -60
YDD0051 59.35 94.44 35.09 1.51
(2,3) 220990 776886 250 270 -60
including 59.35 65.55 6.20 3.91 (3)
and 68.59 71.33 2.74 6.72 (3)
and 80.91 84.99 4.08 0.81
and 90.77 94.44 3.67 1.62
139.86 149.38 9.52 0.44
including 139.86 142.43 2.57 1.00
and 146.38 149.38 3.00 0.46
195.32 197.32 2.00 1.55
YDD0053 46.30 49.30 3.00 1.12 221138 777487 252 270 -60
206.27 209.27 3.00 0.83
251.17 258.03 6.86 1.42
275.03 277.03 2.00 1.34
Appendix 2: Phase 3 Outline Programme Results
Hole ID From To Interval Grade UTM UTM Elevation Azi-
muth Dip
(m) (m) (m) (1) (g/t) East North UTM RL
YDD0054 103.78 108.95 5.17 2.06 221336 777487 249 270 -60
135.65 147.12 11.47 2.45 (3)
421.67 427.84 6.17 9.06
YDD0055 97.72 102.55 4.83 1.60 221336 777237 286 270 -60
126.62 136.54 9.92 1.84
243.52 247.23 3.71 2.49
302.57 310.17 7.60 1.42
340.81 343.81 3.00 1.04
360.82 377.54 16.72 1.77
399.06 406.61 7.55 0.67
425.12 431.55 6.43 1.19
438.33 442.33 4.00 0.56
YDD0056 126.63 136.01 9.38 4.88
(3) 221491 776688 296 270 -60
496.47 499.48 3.01 1.04
542.75 553.09 10.34 5.58 (3)
572.55 576.55 4.00 1.25
YDD0057 65.00 69.85 4.85 1.52 221049 775995 275 325 -55
154.52 156.52 2.00 0.51
184.10 186.10 2.00 0.57
261.24 263.24 2.00 0.65
389.54 392.38 2.84 1.89
483.33 489.63 6.30 0.50
YDD0058 103.10 106.10 3.00 1.73 221170 776176 267 325 -55
147.93 179.63 31.70 0.50 (2)
including 147.93 152.93 5.00 0.58
and 155.93 162.92 6.99 1.03
409.40 411.45 2.05 0.63
429.00 435.00 6.00 1.74
YDD0061 106.78 113.83 7.05 3.15 221382 777088 291 270 -60
138.14 142.61 4.47 2.54
283.00 286.13 3.13 1.98
319.68 322.68 3.00 1.20
332.96 335.96 3.00 3.65
YDD0063 158.41 161.53 3.12 1.26 221121 777687 242 270 -60
168.02 170.02 2.00 0.42
201.05 203.58 2.53 1.46
295.39 300.39 5.00 1.43
318.37 327.37 9.00 2.46
332.37 335.37 3.00 1.52
YDD0065 91.42 100.56 9.14 4.28 221413 776838 296 60 270
126.60 155.09 28.49 1.23 (2)
including 126.60 137.42 10.82 1.74
and 140.87 145.00 4.13 2.43
and 149.22 155.09 5.87 0.97
Appendix 3: Structural Holes in Yaoure Central Pit
Hole ID From To Interval Grade UTM UTM Elevation Azi-
muth Dip
(m) (m) (m) (1) (g/t) East North UTM RL
YDD0059 40.92 47.43 6.51 9.39
(3) 220796 777487 195 90 -85
74.07 82.22 8.15 1.01
YDD0060 36.97 41.64 4.67 3.32 220760 777586 195 90 -85
111.88 129.68 17.80 4.44 (3)
148.56 151.56 3.00 0.97
YDD0062 2.29 5.28 2.99 1.26 220260 777534 195 180 -45
23.60 28.50 4.90 4.00
50.46 62.90 12.44 1.16
68.04 71.88 3.84 1.09
76.88 83.21 6.33 3.88
121.66 127.65 5.99 0.72
192.55 194.55 2.00 0.71
188.65 233.37 44.72 1.39 (2)
including 200.33 214.17 13.84 1.33
and 216.87 233.37 16.50 2.39
Footnotes for Appendices 1, 2 and 3:
As at 8 August 2012, assays were outstanding for 13 holes - YDD0063 to YDD0075. It is not anticipated that results from these outstanding 13 holes will differ significantly from those announced herein.
Interval lengths are not true widths. Composite intersections are based on a minimum width of 2m and a cut-off of 0.4 g/t gold. Internal dilution of up to 2.00m at less than 0.4 g/t has been allowed for continuity.
Aggregated composite intersections for YDD0043, YDD0051, YDD0058, YDD0062 and YDD0065. Internal dilution of greater than 2.00m at less than 0.4 g/t has been allowed.
All samples with visible gold or returning >10 g/t are being reassayed by 500g Metallic Screen Fire Assay (MSFA). Where a MSFA is available, this has been used in the calculation of the intersection rather than the original 50g Fire Assay, regardless of whether the MSFA is higher or lower than the original 50g Fire Assay.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE
Contact
Cluff Gold plc
John McGloin, Chairman
+44 (0)20 7340 9790
Peter Spivey, Chief Executive Officer
+44 (0)20 7340 9790
Pete Gardner, Finance Director
+44 (0)20 7340 9790
Katharine Sutton, Head of Investor Relations
+44 (0)20 7340 9790
Canaccord Genuity Limited
(Nominated Adviser & Broker, London)
John Prior / Sebastian Jones / Joe Weaving
+44 (0)20 7523 8350
Pelham Bell Pottinger
(Financial Public Relations)
Charlie Vivian / Daniel Thole / James MacFarlane
+44 (0)20 7861 3232
