Cluff Gold proceeding in Burkina Faso, Cote d'Ivoire
[ CLF on London AIM exchange ]
from Creamer Media Mining Weekly-- 18 May 2006
Cluff Gold set to pull trigger on two African projects
UK-domiciled gold junior Cluff Gold is set to proceed with the development of the Kalsaka deposit in Burkina Faso, West Africa, following the recalculation of the prospect's reserves by RSG Consultants.
Reserves are now estimated to be over 300 000 oz, while the project has a resource base of some 600 000 oz, which is being assessed together with the nearby Yako prospect, estimated to have resources of 150 000 oz.
Speaking at the company's AGM on Thursday, chairperson Algy Cluff said there were also four identified drill targets at Kalsaka, which have been drill-tested in the past with positive results.
“The combination, therefore, of this level of ounces, complemented by the significant increase in the gold price, has led your board to determine to proceed with the development of the project which is expected to yield in the region of 60 000 oz/y. We are now in the process of arranging project finance with our bankers, RMB Resources Limited. Politically speaking, Burkina Faso remains stable,” Cluff stated.
In the Ivory Coast, the company would look to restart mining at Angovia, a gold-mine, which was in operation between 1998 and 2003.
“We are acquiring from the Ivorian State mining company, for a sum equivalent to approximately $200 000, assets which include a significant part of the plant, all of the housing and other facilities. We are presently undertaking a resource definition-drilling programme, which is planned to be completed during the next three months and which, we hope, will enable us to optimise the development of the oxide material currently estimated at between 200 000 oz and 300 000 oz.” The redevelopment costs of $10-million, should be funded without recourse to the banks for project finance, he added. “The political circumstances of the country have been complex for the past two years. It is now clear that the situation has stabilised and the de facto division of the country into two halves, the legitimate government in the south and the rebellious factions in the north, could well be resolved by national elections presently being planned. From our point of view, we judge that there is presently no consideration that will deter us from proceeding to mine our deposits,” Cluff stated.
The company's fund raising, sponsored by BMO Nesbitt Burns, had added about £1- million to its treasury, which, Cluff said, provided it with a strong enough balance sheet to advance two of its projects towards production, while continuing with exploration.
He also said that good progress was being made on the Baomahun project in Sierra Leone, where the company was particularly bullish about the possibility of evolving it into a multimillion-ounce orebody.
AI
