/R E P E A T -- Cluff Gold plc - Interim Results for the six months ended 30
June 2009/
Highlights: Baomahun gold deposit, Sierra Leone (100% ownership) - 7,000 metre drilling programme successfully completed to test potential at depth - Nine out of eleven holes intersect mineralisation in Central and Eastern Zones - Resource update underway, expected publication in October 2009 Kalsaka Gold Mine, Burkina Faso (78% ownership) - New mining contractor commenced work in January - Mining operation commissioned at the end of June - Gold production for the first six months amounted to 26,772 ounces - Cash operating cost for the period averaged US$595 per ounce Angovia Gold Mine, Cote d'Ivoire (90% ownership) - Larger mining fleet deployed in January - Upgrade to agglomeration drum completed in April - New oxide deposit identified within 2 km of plant site - Impairment charge of US$21.9m at period end Corporate/Finance: - Listing on the Toronto Stock exchange in February (symbol "CFG") - Successful placing raised gross proceeds of US$11.4m in March to further develop the Baomahun gold deposit in Sierra Leone - Cash at 30 June amounted to US$7.6m
Comment:
Algy Cluff, Chairman and Chief Executive, said today, "I am pleased to report good progress by the Company in the first six months of this year. Operations at the Kalsaka Gold Mine reached standards set for successful commissioning with gold production of 26,772 ounces. Production for the full year is expected to be in the order of 60,000 ounces of gold. Whilst the Angovia Gold Mine did not meet forecast production in this period, I am pleased to report that both mining performance and grade are on the increase and I am confident that this operation will shortly exit commissioning. Unfortunately, the turn around has come too late to prevent the impairment of this operation and we have taken the prudent decision to write this asset down by US$21.9m at the period end.
The 7,000 metre drilling programme at the Baomahun gold deposit in
In the last quarter of this year I expect that the Company will be producing at an annualised rate of 100,000 ounces of gold. With this level of production, a robust gold price and continued success at Baomahun, I am optimistic about our future in West
Results:
The Group's operating loss before impairment charge is US$7.7 million. This operating loss has increased in the period due to an increase in the operating costs at Kalsaka and Angovia that are not directly attributable to mine commissioning, and are therefore included in the income statement rather than being capitalised within mine development costs.
Non-current assets have fallen since
The Group's cash at
The Company's financial statements can be found at www.sedar.com.
NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE.
This News Release includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation. All statements other than statements of historical fact, included in this release, including, without limitation, the positioning of the Company for future success, statements regarding potential future production at Angovia and Kalsaka, exploration and drilling results at Baomahun, and future capital plans and objectives of Cluff Gold, are forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Cluff Gold's expectations include, among others, risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined as well as future price of gold. Although Cluff Gold has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cluff Gold does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.
In this New Release the term "cash operating cost" is used as a performance measure. Cash operating cost is used on a per ounce of gold basis. Cash operating cost per ounce is equivalent to mining operations expenses for the period divided by the number of ounces of gold sold during the period.
For further information: Cluff Gold plc, J.G. Cluff, E.Carr, Chairman and Chief Executive, Finance Director, Tel: +44 (0) 20 7340 9790; Evolution Securities Limited, Rob Collins, Tim Redfern, Tel: +44 (0) 20 7071 4300; Joanna Longo, Investor Relations (Canada), The Equicom Group, (416) 815-0700 ext 233, [email protected]; Simon Robinson, Investor Relations (U.K.), Farm Street Communications Ltd, +44 (0) 20 7099 2212, [email protected]
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