Cluff Gold Plc (CLF), the West African focused gold miner, announced that, although 2009 production was below expectations, it is on track to meet its production target in 2010 and work continues at its Baomahun project in Sierra Leone.
Run by seasoned entrepreneur Algy Cluff, Cluff Gold is focused on the identification, acquisition, development and operation of gold deposits in West Africa that are amenable to open-pit mining and low cost production techniques. The Group has assembled a portfolio of mineral interests at various stages of development in Côte d’Ivoire, Burkina Faso, Sierra Leone and Mali.
The Company completed the construction of two gold mines in 2008. Gold was first poured in October 2008 at the Kalsaka Gold Mine in Burkina Faso and in March 2009 at the Angovia Gold Mine in Cote d'Ivoire.
The Angovia Mine in Côte d'Ivoire suffered delays in exiting commissioning, leading to a US$21.9m impairment charge at 30 June 2009. However, the Company indicated that there have been significant improvements in the operational performance in Q4 2009, with total production being 9,582 ozs in the period.
According to the latest results, total annual production from both producing mines was 76,753 ozs in 2009. According to the company, strong gold production continues to date in Q1 2010, and remains on track to achieve the 100,000 ozs production target.
The Company indicated that significant progress has been made with scoping study for the flagship Baomahun project in Sierra Leone, with initial mine optimisation results indicating that current defined resources are capable of sustaining a conventional CIP/CIL processing facility to profitably recover more than 1m ozs of gold. A further significant drill programme is due to commence shortly for inclusion in the Baomahun feasibility study which has a target completion in H1 2011.
The Company had cash of $2.5m at the year end, with total debt facilities of US$10m (of which US$4m remains undrawn).
Algy Cluff, Chairman and Chief Executive, said today:
"Our production results for last year were reasonable given the problems encountered which resulted in delays to commissioning. However, we are very encouraged by the strengthened production results to date in 2010 which are better than expected. We are confident that our 100,000 oz production target will be achieved this year. In respect of the scoping study, initial results indicate a significant recoverable…
