Clifton Star Resources Inc.

Clifton Star Resources Inc. is a junior mining exploration company with a focus on six properties that have had historic production of gold, silver, copper and nickel. The company's portfolio consists of seven properties, six of them near the Porcupine-Destor Fault in Quebec, one on the Manitoba-Ontario border, and all in Canada.

Expert Comments:

"Clifton Star Resources Inc.'s project is marginal at $1,300/oz gold. It is facing a balloon payment and an extremely low valuation right now so it would definitely benefit from gold jumping back through $1,500/oz." read more >

"Clifton Star Resources Inc. scores just over 50, which is in the top third of our Quebec development companies. Clifton is a very high-risk/high-reward stock. In April, Clifton Star published a prefeasibility study on its Duparquet gold project in northwestern Quebec. At $1,300/oz gold, the after-tax NPV is $135M and the IRR is 12.1% (at a 5% discount rate). For the Duparquet mine to be built, gold will need to be at least $1,500/oz. That means that Clifton Star is one of the most leveraged stocks in our database to the price of gold. Its market cap is only $7M with a deposit that's over 4 Moz, which makes it very cheap. Clifton has $50.2M in payments between December 2014 and December 2017 to own 100% of Duparquet." read more >

"Among companies with advanced deposits, Clifton Star Resources Inc. just completed a prefeasibility study on its Duparquet project in Québec, which concluded that pressure oxidation is the best way to process the ore. . .I recommend it to people who believe that gold is going back to $1,500+/oz. At that price Clifton Star's NPV and IRR increase substantially and the current $15M market valuation will grow by multiples as the junior becomes a buyout target." read more >

Killian Charles, Industrial Alliance Securities (4/11/14)
"Clifton Star Resources Inc. announced its prefeasibility study (PFS) for the Duparquet project. . .we strongly believe the current PFS under-represents the potential at Duparquet. Back-of-the-envelope calculations indicate that the Duparquet project's NPV could increase by roughly $75–100M."

"The results from Clifton Star Resources Inc.'s Duparquet project are pretty encouraging. I estimate that it could have about 3 Moz gold in reserves and could produce 150,000 oz a year. . .Duparquet will likely be a good, smaller mine. The stock could benefit from a joint venture or an acquisition of Clifton Star. . .there's a lot of potential for a major to come in and joint venture or acquire the company. There's been a huge amount of drilling on this deposit. It's considerably derisked. Any issues will be on the mining, recovery and processing side. It's a pretty good deposit. I'm certain that Clifton Star will get some interest from majors on this one." read more >

"Clifton Star Resources Inc. is hoping to put out its prefeasibility report in the first half of the year. The company's PEA only used a small portion of the entire resource because the project is proximal to the town of Duparquet, Quebec. Clifton Star wanted to avoid unnecessary complication with the municipality until it properly opened up a dialogue. It wanted to make sure that there wasn't any misunderstanding that arose from a PEA that made an assumption that a portion of the town had to be moved. By avoiding that, it left 2 million ounces in the Measured and Indicated category that are starting right at surface and are easily mineable, so there's great upside there if negotiations do work with the city. The PEA underestimates the potential of that project, but I like seeing a management team that does a top-notch job and doesn't overpromise. . .concentrate excludes some opportunities because smelters are only willing to pay for a certain amount of gold. If there are any penalties through elevated elements in the concentrate, the company could also lose out a little bit. However, it definitely saves on capex. The plant would be much smaller and less equipment is needed. The prefeasibility study will give us a good idea of which plant is better. The key is that the project can work both ways. If Clifton Star wants to get into production faster, it can start producing a concentrate, sell the concentrate, then down the road build a full plant with pressure oxidation, and process and smelt gold ore on site." read more >

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