West Africa-focused firm Cluff Gold (LON:CLF, TSE:CFG) confirmed today there has been an illegal labour dispute at its Kalsaka mine in Burkina Faso, which has temporarily halted operations. The company said it noted media reports and confirmed the dispute. It added that discussions about workers' wages were ongoing and it was confident a favourable outcome would soon be reached. CEO Peter Spivey said: "In common with other operating mining companies in West Africa, our mine staff have requested pay increases for 2011. "The negotiations with our mine staff have recently led to some disruptions at the mine. We are very supportive of our workforce and we continue to have an ongoing dialogue with their representatives. "The disruptions to date have not materially impacted on the mine's performance in 2011. "The company continues to benefit from its strong balance sheet to fund the feasibility study and along strike exploration programmes at Baomahun, together with exploration activities in Burkina Faso and Cote d'Ivoire." Before this recent dispute, said Cluff, production at the mine had been running ahead of budget, therefore disruptions at Kalsaka to date had not affected the company's annual production guidance of 70,000 ounces in 2011. "The company will provide a further update in due course, including, if necessary, a revision to the annual production guidance," it said. It added that the company had been engaged in wage negotiations with staff in the ordinary course of business throughout the current year. "The constructive discussions have been occurring between the company, government representatives and staff, to agree mutually acceptable salary levels," it said. Cluff Gold is a developer-producer and it is focused on becoming a mid-tier producer through developing its wholly-owned Baomahun project in Sierra Leone. This is expected to contribute an initial 157,000oz of gold per year, and has significant exploration potential along strike.

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