Projects - 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.
• JORC-compliant Mineral Resource has increased by 50% to 496,000 ounces.
• Further exploration drilling targeting the underlying sulphides and other satellite prospects is planned in 2008.
  

 Angovia Plant, 2008

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 complete a JORC-compliant resource estimate of 496,000 ounces. In addition, samples have been submitted to Kappes Cassidy in Nevada for further heap leach test work.
Further exploration drilling targeting the underlying sulphides and other satellite prospects is planned.

Resources

Development

In October 2006 the Company took the decision to go ahead with the development of the Angovia Gold Mine. As such, the Company engaged the services of Banlaw Africa Ltd (“Banlaw”) as the mining contractor and Anthony Smith (“Tony Smith”) as 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 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.

Short-term Strategy

• Achieve steady state production at the Angovia Gold Mine 
• Continue the drilling programme to further define and increase the mineral resources and ore reserves
• Assess potential for the production of gold from the sulphide resources