Operations - Angovia, Côte d’Ivoire

Key Points

• First gold pour on 14th March 2008, planned annualised production of 40,000 ounces. 
• More than 31,000 meters of Reverse Circulation (“RC”) drilling completed to date.
• Total of measured and indicated resources are 4.1 million tonnes of oxide at 1.4g/t Au, equating to 190,000 ounces of gold, and a further 5.2 million tonnes of sulphide resources at 1.6g/t Au equating to 260,000 ounces of gold.
• A larger mining fleet was deplyed in January 2009; an upgrade to the agglomeration drum in April 2009; and significant improvement in mining production achieved in April 2009.
• In 2009, a reoptimisation process is being undertaken of the whole Angovia are using a gold price of $850 per ounce. This is expected to increase mine reserves.

 Angovia Plant, 2008

Resources

Short-term Strategy

• ATo bring performance close to budget in order to target an annualised production rate of 40,000 ounces of gold.
• To reassess the increased economic potential at Angovia by:
•    Reoptimisation, design and rescheduling of the reserves.
•    Reassessment of the current processing facilities to further imporve expected recoveries      of  gold.
• To build and enhance relationships with teh local communities and governmental departments. 

  ---

Licence and Exploration History

In October 2004, Cluff Gold successfully negotiated with the government of Côte d’Ivoire for the transfer of the exploration permit at Mt Yaoure after COGEMA decided to change their focus towards uranium deposits.

The environmental baseline study commenced in the fourth quarter of 2006 and has recently been completed. This will lead to the completion and submission to the Government of an Environmental Management Plan for the project. A study on the feasibility of reopening the Angovia Gold mine started in 2006 and has now been completed. It is planned that an application for a mining permit together with report on the reopening of the mine and Environmental Management Plan will be submitted to the Government in the near future.

The Company has a 100% interest in the Angovia project. After the mining permit is granted, Cluff Gold will retain a 90% interest in the project, the remaining 10% interest being held by the Government of Côte d’Ivoire.

The Côte d’Ivoire government has issued a certificate to CMA, a subsidiary of COGEMA, evidencing that it has complied with the work prescribed by the mining regulations relating to the protection of the environment and the restoration of the part of the licence area covered by the Angovia gold mine.

Angovia Plant, 2008

Location and History

The Mt. Yaoure permit is located 40km northwest of Yamoussoukro, the political capital of Cote d'Ivoire, and covers a surface area of 417km² including a 50 km² mining permit. The licence area includes the Angovia gold mine which operated between 1998 and 2003. The mine reportedly produced over 180,000 ounces of gold during this period by heap leaching some 2 million tonnes of oxide material. In late 2004, the Company concluded the purchase of exploration data covering the Mt Yaoure licence including drill assay results from drilling completed around the Angovia Mine. The data was purchased from the previous licence holder, COMINOR, a subsidiary of COGEMA.

The data acquired from COGEMA showed an oxide resource in the area immediately surrounding the mine and a sulphide resource underlying the exploited oxide deposit. A review of the drill data obtained from COGEMA was undertaken by SRK Consulting. They estimated the total potential resource for the project, including resources under the existing pits, to be 800,000 ounces.

Angovia Plant, 2008

Exploration

Cluff Gold has completed a drilling programme of more than 31,000 meters of RC drilling at the Angovia gold mine. This was targeted primarily at near-surface oxidised gold resources amendable to the heap leach processing technique using the infrastructure purchased from the previous mine owner. The drilling has enabled SRK to confirm a total mineral resource estimate of 496,000 ounces. In addition, samples have been submitted to Kappes Cassidy in Nevada for further heap leach test work.  The Exploration Strategy for 2009 is to undertake additional exploration within and around the Angovia Gold Mine in Cote d'Ivoire in order to define additional resource ounces from satellite deposits.

Development

Mining commenced at the end of 2007 with the appointment of Banlaw Africa Ltd (“Banlaw”) as the mining contractor and Anthony Smith (“Tony Smith”) as the project engineer. Banlaw is a company based in Ghana and provides contract mining, earthworks civil engineering and environmental services to mining companies in West Africa. Tony Smith is a metallurgical engineer with over 20 years’ experience in the mining industry, mainly in West Africa and Australia. He has previously managed the development, construction and operation of various heap leach projects, including the Ayanfuri Gold Mine for Cluff Resources plc.

The planned production profile for 2008 was not achieved due to a combination of inclement weather, poor eqwuipment and lower than forecast mining, but since February 2009 mining production rates have increased significantly.

The general infrastructure of the area is good, with a hydroelectric dam six kilometres from the Angovia mine site. Both the infrastructure and the plant are currently being refurbished.

Development Status

The first gold pour on 14th March 2008 marked the end of a commissioning phase. Production is expected to reach 40,000 ounces of gold per annum.

 Technical report

• TSX NI43-101 Angovia prepared by SRK 16.10.2008