Projects - Baomahun, Sierra Leone

Key Points

• Cluff Gold now owns 100% of the Baomahun Gold Project
• 25 year mining lease for the Baomahun Gold Project granted in July 2008
• 7,000 metres of core drilling was completed in 2009 
• The results from this drilling enabled a new resource to be estimated comprising a measured mineral resource of 3.9 million tonnes at 3.0 g/t Au equivalent to 380,000 ounces of gold; an indicated mineral resource of 8.1 million tonnes at 2.8 g/t Au equivalent to 723,000 ounces of gold and an inferred mineral resource of 9.2 million tonnes at 3.2 g/t Au equivalent to 957,000 ounces of gold
• Metallurgical testwork, which included recovery and comminution tests, has now been completed to feasibility stage level. Results from these tests have confirmed preliminary earlier findings that high gold recoveries can be achieved using a conventional direct cyanidation processing method 
• Soil sampling and geophysics point to significant potential along strike
• Exploration currently underway, targeting existing and new areas
• A combined open pit and underground scoping study is to be undertaken, giving a longer mine life
• Slope assessments and geotechnical studies have commenced and a proposed plant and tailings dam site has been identified.

Resources

 All figures are rounded to 3sf

Notes:

Mineral resource estimates have been claculated in accordance with NI 43-101. Mineral resource estimates are reported in gross ounces and not attributable ounces.

Short-term Strategy

• Investigate both the existing and potential mineralised target zones during the forthcoming field season, with further core drilling, trenching and soil sample geochemistry targeting the strike and down dip continuity
• Work has started on a 15,000 metre drilling programme to test the potential of the openpit being supplemented by an underground deposit.
• Complete assay results from the drilling programme will be available in September 2009, if positive, a sloping study will be undertaken in advance of a feasibility study.

Baomahun Core Drilling

Location and History

The Baomahun deposit is located about 180km east of the capital, Freetown, in the Southern Province of Sierra Leone. The project covers an area of 137 km² and the Baomahun License covers more than 12 km of prospective strike along the Kangari Hills. The geological setting is similar to Lake Victoria goldfields in Tanzania. Geochemical soil sampling is underway to investigate the presence of additional mineralization zones.
Viewed from the primary gold target known as the Eastern Zone, the geographical relationship can be seen that exists between the primary, in-situ gold mineralization and the alluvial gold in the valley. The slopes between the source and the valley have in the past been worked by both local miners and medium scale operators.

Core Display, Baomahun

To the south of the project area lies the village of Baomahun. In the foreground, the gold bearing river alluvial deposits are being worked and reworked by small scale miners. The river deposits have been formed from erosion of the primary gold targets in the hills above the river.
Earlier operation of the Baomahun Gold Project (BGP) was established in the late 1980s to early 1990s. The project undertook pilot mining, heap leach viability studies and significant local infrastructure development including a 17km road to the site. Previously, drilling took place at both the Central and Western Zones.

Core Logging, Baomahun

Exploration

Cluff Gold began fieldwork in the area in 2005. During 2007 18,400 meters of drilling has taken place. The recent resource update, which followed on from the completion of a 18,400 metre core drilling programme, identified a total mineral resource of 14.631 million tones at 3.0 g/t, equivalent to 1,455,000 ounces of gold.  The drill programme was undertaken in a small area of the twelve kilometre strike length within the project licence area which is situated along the prospective Kangari Hills Greenstone Belt.

In 2005, Cluff Gold completed an Aeromagnetic survey of the area and identified extensive Banded Iron Formation (“BIF”).  This formation has been found to be immediately associated with high grade gold mineralization in the drilled areas. Further exploration will use the BIF as a marker horizon for auriferous (gold bearing) zones in the belt. The majority of the prospective corridor is yet to be drill tested and the mineralization remains open at depth and along strike on the Eastern, Central and Western zones.
A new field season commenced early November 2006. Further soil sampling will be carried out along the main gold belt, with follow up trenching.

A Scoping Study, which fully addresses the issues of infrastructure including power supply for the Project, was developed in conjunction with independent consultants RSG Global Consulting and SENET Engineering. The result of the study shows that there is an economically recoverable zone of mineralisation that could be successfully exploited by an open pit mining operation with a conventional Carbon in Leach (CIL) ore benefication and recovery process of approximately 1.0 to 1.5 Mtpa. The Project could produce approximately 140,000 to 200,000 ounces annually and the metallurgical test work done to date has confirmed the ore to be non-refractory. The Scoping Study was based on a total mineral resource of 1.35 million ounces as announced by the company on 25 June. Less than 25% of the prospective trend has been drilled so far.

"We are encouraged with the progress at Baomahun . The higher confidence Measured and Indicated Resource categories have increased by 21% and now account for over 70% of the total mineral resources." Douglas D. Chikorhora, Technical Director of Cluff Gold plc.

Recovered Core, Baomahun

Technical Reports

• TSX NI43-101 Baomahun prepared by SRK 16.10.2008

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