Cluff Gold suspends mine over Ivory Coast violence
07 Mar 2011 07:39

Source: reuters // Reuters


* On care and maintenance until political stability returns * Mine had aimed to produce 25,000 ounces of gold this year

* Says bigger operations in Burkina Faso on target

LONDON, March 7 (Reuters) - British miner Cluff Gold Plc has suspended operations at its Angovia mine in Ivory Coast due to shortages of fuel, explosives, cement and cyanide and will not reopen it until political stability returns.

Ivory Coast has been in turmoil since a disputed November election that threatens to rekindle the West African state's 2002-03 civil war, and has already drastically cut exports from the world's top cocoa grower. [ID:nLDE70N1TU] [ID:nLDE7250EB]

must now be a stock to avoid for many months to come

Very bad news...

Seymour Pierce note out today:
Cluff has announced that it is temporarily suspending its operations at its Angovia mine in Cote dIvoire, due to the political situation in the country making it difficult to sustain operations. Critical supplies such as fuel, explosives, cement and cyanide have been difficult to attain due to the political instability.
The mine is significantly the smaller of Cluffs two operations having produced only 20koz in 2010; the companys Kalsaka mine in Burkina Faso produced 74koz last year and the company reports that activity at that site is proceeding as normal. All in all, the company expects that any shortfall in production and impact on cashflow will be limited, but clearly this is a function of the situation on the ground in Cote dIvoire. With production continuing at Kalsaka and significant exploration ongoing around that mine and at Baomahun in Sierra Leone there is plenty to keep the Cluff story interesting in addition to the continuing strength of the gold price. BUY.

are SP the house brokers? ..... the gloss (spin!) they put on their note certainly implies they may well be

Wouldn't surprise me, though regret I do not know.
Tempting to have a punt if it hits the 200 DMA.

Joint House-brokers=

Evolution Securities and BMO Capital Markets Limited

A very upbeat presentaton by Peter Gardner. Covered pretty much all aspects of the company's operations in 25mins. I managed to cath up with one of his team in the margins who noted the management changes that had occured and that the company intended to adopt a higher profile going forward with regular newsflow.

Baomahun
BFS on target for Q3 based on scoping study results (157,000oz pa at a cash cost of c$500/oz, CAPEX of $195m and a recovery rate of 92%). Hydro being explored as their is potential locally which if successful could cut cash costs by $100oz. Drilling on the wider licence area underway with 2 rigs and a 3rd due to arrive later this month. Another two are operating at Baomahun to support the BFS. Overall targetting >10moz across the licence based on the promising survey results. The first drill cores show sulphide mineralisation, but awaiting assay results to confirm the presence of gold. We can expect regular announcements!

Kalsaka
Priority is to extend the mine life beyond current 2.5yrs. Confident they can do this. Two rigs currently targetting prospects.

Angovia
Covered this in surprising detail and emphasised the potential - 'most interesting asset geologically' - while also acknowledging its challenges! In practice, the loss of production there wouldn't affect the balance sheet as costs there currently high, but meant that exploration and developement of the sulphide potential would be delayed. Hydro power nearby. But calm needs to be restored to IC first.

New licences
Mali very exciting and huge potential. The person I spoke to wasn't sure why the license had been relinquished though a number of credible possibilities were discussed but bottom line is we don't know. Mali along with Burkina Faso would provide a future pipeline of projects to succeed Baomahun into production.

Overall
Looking to get to 300,000oz Au pa from existing asset base with potentially more downstream. Looking to start construction at Baomahun in Q1 2012. Already talking to banks and others about funding and regular approaches from companies looking to enter into JVs... But strong sense the company is looking to do this themselves and therefore some funding via equity is likely to be needed, though presumably later in the year post BFS. Currenty trading at only $66 per resource ounce.

A very impressive performance.

gbagbo detained by french sas share price should rise

IC still has a long way to go to get back on its feet, and that will also apply to Cluff

cynic i agree but its a step in the right direction

i was quite tempted by these a couple of days back, but the whole IC infrastructure is now shot to pieces and no basic materials available for mining or anything else ...... as a result, i backed off

Bought some of these today , Tom W seems bullish about them.

June 8, 2011

Cluff Gold: Kalsaka Resumption Update

LONDON, UNITED KINGDOM--(Marketwire - June 8, 2011) - Cluff Gold plc (AIM:CLF)(TSX:CFG) ("Cluff Gold" or the
"Company"), the dual AIM/TSX listed West African focused gold mining company, is pleased to announce that it
has amicably settled the labour dispute at its Kalsaka mine in Burkina Faso.

Normal operations resumed on 7 June 2011 and the temporary disruptions have not affected the Company's annual
production guidance of 70,000 ounces from Kalsaka in 2011.

Peter Spivey, Chief Executive Officer of Cluff Gold, commented:

"We are delighted that the salary negotiations at our Kalsaka mine have been favourably concluded with no
impact on our production guidance for the mine for 2011. In the current robust gold price environment, the
operations at Kalsaka are an important source of finance for the Company's exploration activities in Burkina
Faso and Cote d'Ivoire, as well as providing sufficient cash resources to fund the feasibility study and along
strike exploration programmes at our Baomahun project in Sierra Leone."

About Cluff Gold

Cluff Gold is a gold developer-producer with assets in West Africa. The Company remains focused on its
objective of becoming a mid-tier producer through the development of its wholly-owned Baomahun project in
Sierra Leone, which is expected to contribute an additional 157,000oz of gold per annum, with significant
exploration potential along strike. With its experience of bringing new mines into production and a project
pipeline of exploration licences, the Company aims to further increase its production profile with its highly
prospective exploration work across all assets.

This press 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, statements regarding potential outcome and impact of labour discussions and
disruptions at Kalsaka, including impact on future production, 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 and
the time necessary to resolve current labour discussions. 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.

Peter Spivey is a "Qualified Person" within the definition of National Instrument 43-101and has reviewed and
approved the information contained within this announcement. Mr Spivey (BSc, AusIMM) is the Chief Executive
Officer of the Company.