Hot Features
Premium
Level up your trading with our powerful tools and real-time insights all in one place.
West Africa-focussed gold producer, Cluff Gold plc (LSE:CLF), expects to update its resource by the fourth quarter of 2012 once it completes its drilling programme at their Yaoure project in Côte d’Ivoire (Ivory Coast), the company said today.
The statement was made by the firm’s Chief Executive, Peter Spivey, along with the update of the third phase of its’ operation in the 90%-owned project, which it acquired in 2004.
Significant results from the drilling indicated 10.34 metres at an average grade of 5.56 grams per tonne (g/t), 9.14 metres at 4.28 g/t, and 7.05 metres at 3.15 g/t from 16 holes for a total length of 6,293 metres.
In total, Cluff has drilled 53 holes since it started drilling in December 2011 and the company targets to finish the programme by late October in time for an updated resource, which currently stands at 292,000 ounces of gold at a grade of 1.6 g/t.
Cluff intends to determine the how wide the open pit mining can be established within the 357-square kilometre acreage, while targeting only the low-grade ore, as a cost consideration.
No Frenzy
The company’s announcement today, however, did not seem to have placed so much impact in the market as shares only moved 1.8% to 55.75 pence by 11:06 AM GMT, at a turnout of over 238,000 shares.
Cluff’s share price has lost over 47% of its value since it recorded 104 pence a share on 24 February 2012.
Back in March 2012, the miner raised £23 million by placing 25 million shares, or 18.9% of the company’s issued capital, at 92 pence each, to fund the company’s exploration and production projects in its assets in West Africa.
The falling share price may probably be explained by the still unavailable definitive feasibility study from Cluff’s flagship development project, the Baomahun project, in Sierra Leone, which the company promised to be ready this month, after having previously promised it to be delivered by the second quarter.
Meanwhile, Mr. Spivey is confident with Yaoure’s potential, given the lower cost it projects in the development of the mine, making the miner “one step closer to achieving its goal of becoming a mid-tier producer”.
Company Spotlight
Cluff Gold plc is a UK-incorporated gold developer and producer with projects in Côte d’Ivoire (Ivory Coast), Sierra Leone, Burkina Faso, and Mali.
The company is dually listed on the Alternative Investment Market of the London Stock Exchange and the Toronto Stock Exchange.
