London, England — MININGREVIEW.COM — 20 March, 2008 – Cluff Gold Plc – a British-based and AIM-listed company focused on the identification and acquisition of mining deposits in West Africa – has made significant progress with its two main projects in the region.
A production, construction and drilling update published here late yesterday says pouring of the first gold bar earlier this week marked the end of the commissioning phase of Cluff’s Angovia gold mine in Cote d’Ivoire. Production is now expected to be ramped up to the planned annualised level of 750 000 tpa yielding 40 000 oz pa of gold.
The update reports that the development of the Kalsaka project in Burkina Faso is on course, with production scheduled to start in the second quarter of 2008. Most of the steel work and plant equipment has been delivered to the site, and the mining contractor has commenced pre-stripping. Annualised production is expected to reach 60000 oz of gold in the second half of 2008.
The current ore reserve estimates for Kalsaka amount to 323 000 oz, but new evaluations are expected to raise ore reserve estimates, bringing the opportunity of increasing annualised production with minor modifications to the processing plant.
The Cluff announcement confirms that the Angovia and Kalsaka mines will come into production at a low combined capital construction cost of approximately US$35 million (R280 million). Neither of these projects is burdened by debt and the company remains un-hedged.
“The pre-feasibility project for the company’s flagship Baomahun project in Sierra Leone is well underway with three drill rigs on site,” the update continues, “and assay results continue to confirm expectations.” Cluff Gold announced at the end of last month that it had reached conditional agreement to buy the remaining 40% stake in Baomahun, which would increase the company’s ownership to a full 100%
Cluff Gold technical director Douglas Chikohora commented “We are delighted with the overall progress made by the company since the last operational update. The first gold pour at Angovia marked the commencement of production for us, and Kalsaka is on schedule to commence full production during the second half of 2008,” he added. “The encouraging assay results that we are receiving from Baomahun are being incorporated into a resource update which will be announced in due course,” he concluded.