Cluff Gold reports that output from its Kalsaka mine in Burkina Faso totaled 71,505 ounces for the year 2011 this the gold miner said “exceeded production targets” in 2011pegged against a guidance of 70,000 ounces. It also said that it expects similar production figures for the year 2012. Peter Spivey, Cluff’s chief executive of Cluff Gold said “Kalsaka has delivered strong operational results in 2011 and we are confident that this will continue in 2012.”
Cluff Gold which ended the year with total cash and bullion holdings of approximately US$32.9 million, an increase of US$3.3 million over the end of September also disclosed that extending the life of Kalsaka remains its “utmost priority” and a drilling budget of US6.8 million has been earmarked for a programme around the current site and also at Yako, about 25km southwest of Kalsaka.
This will follow the 36,546m of RAB and 39,859m of RC drilling at Kalsaka in 2011, including 2,836m of RC drilling focused on sulphide targets. Results from this programme have been “delayed by slow processing of the assays”. Cluff however said it was “encouraged” with the information it had received so far and is “confident” that results will “contribute to an extension of the existing mine life at Kalsaka.” Proactive Investors also reported that “The management team is now working towards extending the mine life at Kalsaka and we are already achieving promising exploration results in the oxide zone. We are also pursuing the possibility of developing a long-term sulphide operation following the receipt of encouraging exploration results from deeper drilling.”
On its flag ship Baomahun project in Sierra Leone Cluff said it is “progressing towards feasibility study and positive drilling results from Angovia’s [Ivory Coast] drill programme, we seek to leverage our strong balance sheet and on-going production to allow us to maximise our asset base and fulfill our goals for 2012”. In December 2010, Cluff estimated Kalsaka had reserves of 186,000 ounces.
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