Projects - Baomahun, Sierra Leone

Key Points

• Conditional agreement has been reached with Mr. Winston to acquire the remaining 40% stake at Baomahun 
• Over 25,000m of core drilling planned this year 
• Over 1,160,000 ounce resource established (JORC)
• Soil sampling and geophysics point to significant potential along strike
• Exploration currently underway, targeting existing and new areas
• Positive Scoping Study completed in August 2007
• Two rigs recommenced core drilling on 1st November 2007

Licence

Cluff Gold UK Limited has now reached a conditional agreement with Mr. Winston to acquire the remaining 40% stake in Baomahun, which would increase Cluff's ownership to 100%.

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 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 mineral resource of 11,161 million tones at 3.2 g/t, equivalent to 1,160,000 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 is based on the current Indicated and Inferred Resources of 1.16 million ounces as announced by the company on 4 July. Less than 25% of the prospective trend has been drilled so far.

Recovered Core, Baomahun

Short-term Strategy

• Complete a further 25,000 metres of core drilling in 2008
• Inititate a pre-feasibility study, which if successful, would lead to a full feasibility study for completion in 2009