Mining company takes over gold resource in Burkina Faso.
Cluff Gold has successfully completed its acquisition of the Sega Gold Project from Orezone Gold Corporation, taking over a gold resource just 20km north of its Kalsaka heap leach operation in Burkina Faso.
The new Sega site has a forecasted resource of 450,366oz, which Cluff Gold has said provides “an opportunity to enhance Kalsaka’s production profile with limited upfront capital expenditure”.
A preliminary economic assessment of Sega is currently in progress and is expected to be completed later in Q2 2012. An environmental and social impact assessment is also currently underway to ensure that the licensing of the property can be concluded in with ease and efficiency, to allow a smooth transition for processing from Kalsaka to Sega ore sources.
As part of the completion of the transaction, Cluff Gold has issued 11 million new ordinary shares of 1p each in the c ompany to Orezone. An application has been made for the new shares to be admitted to trading on the AIM market of the London Stock Exchange, likely commencing May 28.
Peter Spivey, chief executive of Cluff Gold, said: "We are pleased to have completed the acquisition of the Sega project. This transaction will allow the Kalsaka mine to continue to provide significant cash flow through the development and early production phases of our flagship development asset, Baomahun in Sierra Leone.
“This transaction brings us closer to establishing Cluff Gold as a leading mid-tier West African focused gold producer."