Cluff Gold Share Discussion Threads

[mechanical trader] 01/3/2012 00:53

Cluff Gold eased 3.12p to 98.38p despite releasing encouraging drilling results for the Baomahun project in Sierra Leone. The results form the base for a resource update due by April 2012.Oriel's target price is 126p.

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[pineapple1] 29/2/2012 17:57

i don,t subscribe but i know he,s taken some big hair cuts in 2011 inc a small one here.

[mechanical trader] 29/2/2012 14:56

Here we are CLF CLUFF GOLD

Cluff – we are buying aggressively. Shares are 106p but plausibly worth 350p

[mechanical trader] 29/2/2012 14:50

Yep but 100% is very good news and bullish.

[boadicea] 29/2/2012 13:04

mech t - From that position, sentiment can only turn negative!
(But not yet, I hope.)

[mechanical trader] 29/2/2012 11:46

IG INDEX CLIENT SENTIMENT

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Client Sentiment

LONG 100% of IG clients with open positions in this market expect the price to rise

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[stevea171] 29/2/2012 11:35

Fairfax Market Report.

Cluff Gold (LON:CLF) 101 pence, Mkt Cap £133m – Baomahun Exploration Results and Feasibility Study

· The company has drilled a total of 7,024 m over 33 holes since the last resource update for Baomahun which included 2.1m oz indicated (25.6 Mt at 2.5 g/t) and 0.9m oz inferred resource (9.6 Mt at 2.8 g/t).
· In addition the company drilled 4,158m and 18 holes prior to the last resource estimate.
· Assay results have been received for 40 holes which show a number of intersects which demonstrate good potential for the Baomahun Deposit.
· These include:

o Hole DDH398: 1m at 2.9g/t from 47m, 8m at 5.7g/t from 95m and 2m at 2.2g/t from 140m
o Hole DDH401: 14m at 2.4g/t from 36m
o Hole DDH405: 2m at 0.6g/t from 70m and 16m at 2.6g/t from 84m
o Hole DDH415: 6m at 7.9g/t from 291m and 9m at 2.2g/t from 381m
o Hole DDH417: 12m at 3.0g/t from 264m, 31m at 1.4g/t from 290m and 2m at 1.4g/t from 334m
o Hole DDH422: 7m at 3.4g/t from 61m, 6m at 2.2g/t from 83m and 2m at 0.7g/t from 164m
o Hole DDH434: 3m at 6.3g/t from 4m and 27m at 2.3g/t from 30m

· The company expect to have a resource update in April 2012 based on the results of the infill drilling programme.
· Now that the infill drilling programme has been completed, the company will be focussing on identifying additional resources along strike.
· The company have received a draft feasibility study setting out the potential to run a river hydro-electric power facility 40 km north of the Baomahun project site.
· The study has potential for 24 MW of power generation which is more than sufficient for the requirements of the Baomahun project.
· The cost of running a hydro-electric facility is less than US$0.01/kWh and this will give scope for the company to save 50% of its power compared to heavy fuel oil generation.
· The company estimate that this would provide cost savings of between US$50-100/oz and would de-risk the long term cost base of the project.
· Early infrastructure work is on-going whilst the feasibility study is expected to be complete in Q2 2012.

Conclusion: All seems to be on track for the feasibility study expected in H1 2012 with drill results supporting a resource upgrade. The potential for a hydro-electric power should also have a meaningful impact on the project economics.

[stevea171] 29/2/2012 11:14

Cluff Gold expects feasibility study for Baomahun in second quarter
7:51 am by Philip Whiterow

Cluff Gold (LON:CLF, TSE:CFG) said today it had completed in-fill drilling at its Baomahun development in Sierra Leone and expects a definitive feasibility study to be ready by end June.

The highlight infill-drilling results included lengths between 3 and 31 metres with gold grades ranging from 1.4 grams per tonne (g/t) to as high as 7.9 g/t. The programme in total consisted of 33 holes over 7,024m.

Cluff said the results included significant multiple intersects that demonstrated the rich potential of the Baomahun deposit. It has restarted exploration drilling along strike from the main resource area.

Furthermore Cluff says that exploration drilling has restart along strike from the current resource area. Results so far include intersections with lengths ranging from 2 to 10 metres and grades of 1 g/t to 4.1 g/t.

An updated resource is expected in April 2012 that will incorporate the in-fill drilling results and will also be the basis of the final feasibility study.

The miner added that it also expects to agree the position of the forest boundary and an environmental permit with the Sierra Leone government in this current quarter.

The environmental permit will allow the completion of the environmental impact assessment, which is the outstanding part of the feasibility study. Mine construction is expected to start later this year.

The miner added it is also assessing the possibility of building a hydro-electric power facility 40km north of the Baomahun project site, which would be funded by a third party.

A hydro plant could cut the potential power costs by 50 per cent and reduce cash costs by between US$50-100 per ounce of gold produced, Cluff said.

Peter Spivey, chief executive, added: "We continue to see the Baomahun project developing into a world class mine, encompassing not only the initial open pit development that will be the subject of our feasibility study, but also the longer term potential for additional resources along strike, high-grade feed from underground sources, and cost efficient hydro-electric power generation de-coupling the project economics from the long term oil price."

[mechanical trader] 29/2/2012 10:24

CLF Cluff Gold chart starting to look very
positive. News today should help
going forward.

[mechanical trader] 29/2/2012 10:19

CLF Cluff Gold chart starting to look very
positive. News today should help
going forward.

[mechanical trader] 29/2/2012 09:54

Cluff Gold pleased with progress at Baomahun 29 February 2012 | 09:38am

[mechanical trader] 29/2/2012 08:48

Wednesday, Feb 29 2012 by Fox Davies Capital

[amargosa] 29/2/2012 08:16

Yes, the delay relating to the forest boundary seems to be nearly solved - permit to be awarded by the end of Q1; that will be a significant hurdle removed. The extension to the current resource area is also very good news, the resource area is bigger and easier to access for processing. It does appear to be FINALLY coming together in SL.

[boadicea] 29/2/2012 08:13

My holdings have had 3 updates this morning (CLF, HER, MARL) of which this is arguably the best.
Initial subdued response might tend to indicate that it has been well anticipated in the recent share price recovery, but considered re-evaluation over coming weeks may turn out to be more significant.

[mechanical trader] 29/2/2012 08:02

Excelent update....

[stevea171] 27/2/2012 10:05

IB. Yes, last week an institution was filling their boots here. There may be a holding RNS this week disclosing who it was.

Agree there is a lot of news flagged up for release soon incl drilling results at Sega, IC, potential resource upgrades, news on Baomahun, etc.

Your list shows the potential for upside surprises on many fronts. Thanks.

>>>> "There is an awful lot of news due in the next few weeks/months:

1. Baomahun Environmental permitting
2. Baomahun resource upgrade potential or additional drilling results
3. Kalsaka resource upgrade
4. Yaoure drilling results
5. Sega acquisition confirmation
6. Final quarter results
7. Sega drilling results/upgrade
8. 2011 final results
9. Yako drilling results/resource upgrade
10. HEP Study at Baomahun
11. Baomhaun BFS
12. 1st quarter results"

[inside building] 24/2/2012 23:21

Fitton only 6 weeks ago MML was at £2.90 and has risen a similar % to Cluff.
I actually believe that 6 weeks ago junior gold mining shares were sold off and have now been bought back which has driven the recent rises in a number of companies.
Of course it is unpredictable but that is the reward/risk ratio. If Cluff deliver on the next 4 months then i think the share will be rerated up towards £1.50 -£1.80 per share plus (as long as gold remains high and they do not have any issues at Kalsaka). This would then make a £2 bid unlikely to be acceptable.

We will only know with time.

IB

[fitton] 24/2/2012 22:40

If £2 is on the table then Cluff will be sold.As the jigsaw comes together so will an offer for the company.Everyone invested in Cluff would love to see £2,£3 or £4 a share and that may come in time but mining is an unpredicable business.With the perfect storm maybe the share price will reach these levels but only 6 weeks ago the share price was at 65p and things didn't look to good.If the ecconomic enviroment takes a down turn so will the share price.The company looks to have turned the corner but there is still a long way to go.Its good to read a few more postings on the bb.Good luck to everyone

[inside building] 24/2/2012 22:14

ppidkw,

I am not suggesting i would be happy with £2 as i have been in now since 2009.
I have said before on here that if Cluff deliver on the 3-4 year plan from now then they could be a £1bn company (£6-£8per share). That would mean production running at 300kozs and assets with LOM and resources continuing to grow considerably.
I have this gut feeling that they are sitting on a serious amount of gold ozs in the ground. My own view is that they could be sitting on the following:

Baomahun - 5-7m ozs
Kalsaka - 2mozs
Sega - 2mozs
Yako - 1mozs
Yaoure - 3mozs
Other BF assets - too early
Mali - too early

With regards to Baomahun funding i think they will need to go for about $150m. To see them into full production with existing cash flows adding to funds over the next two years plus keeping drilling going elsewhere.
So how best to do this? There has been a whole host of different types of funding announced by other companies in recent months:

Hedging
Off take agreements
Bank Loans
Share placing
Asset sales

They have stated that they are looking to reward long term shareholders/investors. In order to do this it sounds as though they might offer a part placing to raise funds which might afford some form of free /option shares/warrants etc. I can see existing institutions taking up this option which is why some i feel have been increasing holdings.
I think a loan/placing option is most likely. Macquarie must be in this to get a slice of the cake as they are not a charity and they are still showing a paper loss on their current holding.
I don't believe Orezone will take up their placing option as they need cash. So this will release more back to other investors.

Just my thoughts for what it is worth.

IB

[ppidkw] 24/2/2012 21:45

Good to see that things might be starting to move here again. But Pineapple please don't get into that chart thing again - last time that happened and all you chartists were getting excited about Head & Shoulders/Timotei patterns etc. the Ivory Coast blew up and the share price took a tumble.

I'm not keen on being taken over though, and I'm not sure that Cluff's patient US institutional investors will be either. Certainly not for two quid. I've been in Cluff since 2009 and have a sizeable chunk (for me) tied up here. 200% would be nice, but there could be much better longer term value.

The big question is how, and at what cost, are they going to finance Baomahun? Or will drilling at Yaoure, and now Sega plus exploration in Mali and BF change the company's focus? Any thoughts?

[inside building] 24/2/2012 19:49

Steve,

Personally i do not see that yet and even if it was coming i can only imagine another rejection unless we are at the £2 per share level.
There is an awful lot of news due in the next few weeks/months:

1. Baomahun Environmental permitting
2. Baomahun resource upgrade potential or additional drilling results
3. Kalsaka resource upgrade
4. Yaoure drilling results
5. Sega acquisition confirmation
6. Final quarter results
7. Sega drilling results/upgrade
8. 2011 final results
9. Yako drilling results/resource upgrade
10. HEP Study at Baomahun
11. Baomhaun BFS
12. 1st quarter results

A leak or inside knowledge on many of these would start the upturn and don't forget it is only recovering to 2010 levels.

IB

[john148] 24/2/2012 19:48

Same strategy as happened with Cluff Oil a couple of decades back. This company is ripe for a takeover.We could see 120p in a couple of weeks.