Cluff Gold plc (TSX:CFG)(AIM:CLF), the dual AIM/TSX listed West African-focused gold mining company, is pleased to announce the results of the interpretation of the airborne versatile time domain electro-magnetic survey for its wholly-owned Baomahun asset in Sierra Leone.
Highlights
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Seven new drill targets have been initially identified using data from the VTEM Survey
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All targets are interpreted to occur close to surface
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All targets are interpreted as having strikes and dips similar to mineralisation in the existing resource area in which 1.4Moz of measured and indicated resources, and 1.0Moz of inferred resources have been delineated to date
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A targeted and accelerated 6,000m diamond drilling programme focusing on the seven new targets is due to commence in January 2011 as part of the Company's US$12 million programme at Baomahun in the 2010/11 season
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An additional 20,000m infill drilling programme has already commenced also as part of the Company's US$12 million programme
Algy Cluff, Chairman and Chief Executive of Cluff Gold, commented:
"We are delighted with the results of the VTEM Survey, which confirm our belief in the significant upside at Baomahun. We now have in place a defined schedule to both drill-test these new targets whilst also ensuring that the feasibility study remains on track. Following our recent fundraising, the Company is now well positioned to take an aggressive approach to its exploration programmes across all three assets."
Details of VTEM Results
As a result of the extensive drilling programme to date, 0.5Moz (5.5Mt @ 2.9g/t) and 0.9Moz (9.6Mt @ 2.9g/t) have been delineated in the measured & indicated resource categories respectively at Baomahun, with an additional 1.0 million ounces (12.2Mt at 2.6g/t) in inferred resources. The gold mineralisation is contained in gold bearing quartz veins and remains open at depth. The resource base is currently contained in an area of approximately 2 sq. km while the total project licence area is 136 sq. km.
In the existing resource area, gold is known to be associated with pyrrhotite, a highly conductive and magnetic sulphide mineral. The VTEM Survey was undertaken to identify potential drill targets by identifying similarly highly conductive zones in the rest of the Company's license area.
The VTEM Survey results were then compared against existing aeromagnetic data, known lithologies, geochemical soil survey results and areas of previous artisanal mining to produce the initial seven high priority targets for further exploration. Based on recently completed detailed interpretation, the top of the conductors in all seven zones are interpreted to occur within 100m of the surface. Furthermore, the conductive zones along strike are interpreted as having similar strikes and dips as the gold-bearing veins in the current resource area.
The Company's strategy is to undertake an initial drilling programme to test the seven new zones for gold mineralisation and to follow up favourable results with a programme of step out drilling. As such, an initial 6,000m diamond drilling programme utilising two exploration drill rigs has been planned. The rigs are due to arrive on site in January 2011.
In addition, a 20,000m infill drilling programme is planned as part of the Company's US$12 million budget committed to the Project up to June 2011 for its feasibility study and exploration. One drill rig is already drilling following the end of the wet season, and another is due to arrive this month.
Data Verification and QA-QC Statement
The VTEM Survey was conducted and interpreted by Geotech Ltd. of Barbados, an independent contractor.
Source: Cluff Gold plc