Cluff Gold’s Baomahun measured and indicated resource jumps 27% to 1.4 million ounces

Cluff Gold (LON:CLF, TSX:CLG) has upgraded the NI43-101 Mineral Resource estimate for the Baomahun Project, in Sierra Leone, increasing total Measured and Indicated Resources by 27% to 1.4 million ounces (Moz) of gold – with  over 15 million tonnes of mineralisation grading 2.92g/t

Cluff Gold’s Technical Director, Douglas Chikohora, said that Baomahun continues to exceed the company’s expectations. Baomahun contains a further 1.03 Moz in the inferred resource category (12.1 million tonnes grading 2.64g/t).

The increase in the Mineral Resources at Baomahun follows the completion of an additional 7,000 metres of core drilling which tested the continuity of known mineralisation, in all directions as well as additional structures discovered recently.  Seventeen holes have been drilled since the previous Baomahun mineral resource estimation, announced on 22nd October 2009.

A new drilling program is currently being planned to target new anomalies identified by a heliborne VTEM (Versatile Time-Domain Electromagnetic) survey. Cluff said it intends to drill until the onset of the rainy season in August.

There is a strong correlation between banded iron formations (BIF) and mineralisation in the project area, with the gold hosted in the hanging walls and footwalls of the BIF structures, in zones varying from 5-20 metres in thickness. This link has proved useful, as Cluff have been able to use the BIFs – identified by airborne geophysics - as markers for gold mineralisation. Predominant sulphides, which underlie a shallow oxide layer, are pyrrhotite, arsenopyrite, and pyrite, the last occasionally in conjunction with quartz veining.

“We aim to continue our drilling programme for the foreseeable future and we remain optimistic about the future economic viability of Baomahun, especially with these new figures included in the Preliminary Assessment (Scoping Study)", Chikohora commented.

Furthermore, the company noted that the Scoping Study is due to be completed by the end of the month

In addition to the substantial Baomahun development project, the company already has relatively strong gold producing assets, with the Kalsaka mine in Cote d’Ivoire and and the Angovia mine in Burkina Faso.

Cluff’s annualized production was nearing the company’s 100,000 ounce target, in 2009, following the commissioning of both Kalsaka and Angovia. In 2009 annual production from Kalsaka and Angovia totalled 76,753 ounces of gold. The company’s objective is to produce 100,000 ounces in 2010.