Tuesday, September 12, 2006

Cluff upgrades SL gold resource

Gold junior Cluff Gold, of the UK, has increased its gold resource at the Baomahun project, in Sierra Leone, by 70% to 880 000 oz, it said on Monday.
The announcement followed the completion of a resource update on the project conducted by the South African consulting firm, SRK.
The company completed a 4 400-m core-drilling programme in a small area of the 12-km strike length within the project licence area, situated along the prospective Kangari Hills Greenstone Belt.
SRK has derived a mineral resource of 8,65-million tons at a mean grade of 3,2 g/t.
Cluff Gold said in a statement that the majority of the prospective corridor was, however, still to be drill-tested and that further drilling was planned for next month.
Technical director Douglas Chikohora said: “We are very pleased with the latest resource update by SRK which has surpassed our expectations and serves to substantiate the recent independent report from L R Kilpatrick which stated that this project has the potential to be a multi million-ounce deposit. We are also very pleased to have achieved these results at a discovery cost of less than $5/oz.”