Clifton Star Resources Inc.

Clifton Star Resources Inc.

February 14, 2013 08:47 ET

Clifton Star Announces Final 2012 Drilling Results from the Duparquet Project Including 3.21 g/t Au Over 24.8m and 2.15 g/t Au Over 39.0m

QUEBEC CITY, QUEBEC--(Marketwire - Feb. 14, 2013) - Clifton Star Resources Inc. ("CFO" or "Clifton") (TSX VENTURE:CFO)(FRANKFURT:C3T) is pleased to announce the assay results from the remaining 23 drill holes from its 2012 drill program at the Duparquet Project of Quebec's Abitibi region.

All of the drill holes listed in this press release were completed after the PEA study closing date, and therefore were not included in the new resource estimate of the recently published (January 15, 2013) PEA which showed a pre-tax NPV of $382M (5% discount rate) and a 19.5% IRR for the Duparquet project at a gold price of US$1472 per ounce. At a gold price of US$1700 per ounce, the PEA showed a pre-tax NPV (5% discount rate) of $621 million, an IRR of 27.6%, and a payback period of 2.95 years.

Clifton Star continues to obtain significant assay results from both delineation holes within the limits of the current pits shells and exploration holes outside of the pits shells. The positive results within the pits limits demonstrate that the zones show good grades and continuity, while the exploration holes demonstrate the potential to increase the limits of the current pits shells. (Click here for Figure 1

Drill Highlights include:

  • Hole BD12-29 with 28.5 meters grading 2.15 g/t Au (Syenite Zone)

  • And BD12-29 with 33.0 meters grading 1.61 g/t Au (RS/RW Zone)

  • Hole D12-36 with 7.5 meters grading 3.03 g/t Au (Syenite Zone)

  • And Hole D12-36 with 24.8 meters grading 3.21 g/t Au (North Zone)

  • Hole CD12-11 with 4.0 meters grading 8.86 g/t Au (CD Zone)

  • Hole CD12-12 with 6.0 meters grading 4.89 g/t Au (CD Zone)

  • Hole CD12-13 with 39.0 meters grading 2.15 g/t Au (CD Zone)

  • Hole CD12-15 with 22.0 meters grading 1.88 g/t Au (CD Zone)

  • Hole BD12-23 with 22.0 meters grading 1.69 g/t Au (RS/RW Zone)

  • Hole BD12-27 with 39.3 meters grading 1.17 g/t Au (Syenite Zone)

The results of these 23 drill holes, as well as a majority of the drill results reported in the press release by Clifton Star on October 16th, 2012 (17 out of the 19 holes released) and all those shown in the December 3rd Press Release (14 holes), for a total of 54 holes (16,150.5 meters), were not included in the most recent NI 43-101 Resource estimate published January 15, 2013, on which the Preliminary Economic Assessment (PEA) was based.

Overview of 2012 Drilling Program

Clifton Star has completed its 2012 drill program on the Duparquet Project by drilling throughout the year at a steady pace with 2 drill rigs. The 2012 drill program on the Duparquet project included the completion of 98 holes totalling 33,480 m.

Drill Results

The 2012 assay results continue to be very encouraging for both the exploration holes outside of the pit shells and the definition holes within the current proposed pit shell. The true thicknesses of the intersections are typically 60% to 80% of the core lengths.

Following are some of the highlights from the assay results of the last 23 holes of the 2012 drill program, with the results of all 23 holes shown in Table 1:

Hole BD12-23 intersected 1.69 g/t Au over 22.0 m outside of the current pit shell at approximately 140 m below the surface. This intersection is part of the larger RS/RW zone that is well developed to the west (Click here for Figure 2

Hole BD12-27 intersected 1.17 g/t Au over 39.3 m along the edge of the pitwall at approximately 75m below the surface. This included several higher grade sections of 2.61 g/t over 4.3 m, 4.01 g/t Au over 3.1 m and 2.90 g/t Au over 3.5 m. This mineralization is hosted within the larger Syenite envelope between the RS/RW Zone and the South Zone (Click here for Figure 3

Hole BD12-29 intersected multiple sections of widespread gold mineralization. The first section assayed 2.15 g/t Au over 28.5 m, including a higher grade section of 3.73 g/t au over 11.9 m, within Zone 6. The second wider interval returned an assay of 1.61 g/t Au over 33.0 m, including higher grade intervals of 4.33 g/t Au over 3.0 m and 4.37 g/t Au over 5.0 m from within the RS/RW Zone (Click here for Figure 4

Hole D12-36 intersected several mineralized intersections along the western wall of the pit shell. The best intersections included 3.03 g/t Au over 7.5 m within the Syenite Zone, just outside of the Pitwall at a vertical depth of 70 m below the surface, and 3.21 g/t Au over 24.8 m at the bottom eastern extension of the Donchester pit at a depth of 170 m below the surface (Click here for Figure 5

Drilling of the Inferred Resources material within and surrounding the Central Duparquet pit shell demonstrated the continuity of these resources. Hole CD12-11, located near the bottom of the current pit shell at approximately 100 m below the surface, returned a high-grade section of 8.86 g/t Au over 4.0 m (Click here for Figure 6

Hole CD12-12, located 100m to the east of hole CD12-11, intersected a zone of 4.89 g/t Au over 6.0 m at a depth of 100 m below the surface. Hole CD12-13, located 50 m up dip from CD12-12, intersected widespread mineralization with 2.15 g/t Au over 39.0 m (Click here for Figure 7 ).

A further 100 m to the east, hole CD12-15 intersected widespread mineralization, with 1.88 g/t Au over 22.0 m at less than 100 m below the surface (Click here for Figure 8

2013 Activities:

On January 15th, Clifton Star reported the results of its positive PEA. The financial analysis, using a gold price of US$1,472 per ounce, indicated a pre-tax net present value ("NPV") (using a 5 % discount rate) of $382 Million, with a pre-tax internal rate of return ("IRR") of 19.5%. At a gold price of US$1700 per ounce, the PEA showed a pre-tax NPV (5% discount rate) of $621 million, an IRR of 27.6%, and a payback period of 2.95 years.

Clifton is pleased with the drill results, and has continued its drill program for 2013 with the goal of upgrading and expanding the current resources.

Clifton has also initiated the process of collecting a bulk sample that will be sent to SGS Lakefield for additional metallurgical testing. The results from the 54 drill holes from 2012, post cut-off date for the PEA, and the current drill holes from the 2013 program will be incorporated in a future update of the resource component for the pre-feasibility report set to begin in early 2013 and expected to be completed in March 2014.

This new Resource Estimation of the Duparquet Project will include the Beattie, Donchester, Central Duparquet and Dumico properties, as well as the Beattie tailings. Clifton is continuing an extensive resampling program and QA/QC review of historical holes on the Dumico property, located approximately 1 km to the east of the Central Duparquet pit shell.

Technical Information and Qualified Persons

Diamond drill holes are drilled to recover NQ size core. The core boxes are sealed and delivered to the company's core logging facilities on site at the end of each shift where they are photographed, logged and sampled. Core samples are sawed in half, bagged and sealed prior to being transported directly by the Company to Activation Laboratories Ltd. (Ste-Germaine de Boule), an independent accredited laboratory, for assay analysis. The assay analyses performed during Clifton's drill programs are subject to a formal quality assurance and quality control (QA/QC) program, with standard reference materials, blanks, and field duplicates samples inserted prior to shipment from site to monitor the quality control of the data. Samples with higher grade gold (greater than 10 grams per tonne) are reassayed using a gravimetric and/or pulps and metallic procedure. All gold results reported are cut, with assays greater than 25 grams per tonne cut to 25 grams.

The Company's exploration team designed and executed the 2012 drilling program under the supervision of Clifton's Vice President of Exploration, Mr. Louis Martin. The content of this news release has been written and approved by Mr. Louis Martin, P.Geo, a Qualified Person as defined by National Instrument 43-101.

Duparquet Project
2012 Drilling Results
Table 1
NZ=North Zone, SY=Syenite Zone, SZ=South Zone
In Pit = Intersections within the Current Pit Shell
Out of Pit - Intersections outside of the Current Pit Shell
Hole ID From
(Au g/t)
BD12-23 122.4 127.5 5.1 1.72 631140 SY Out of Pit
BD12-23 174.0 196.0 22.0 1.70 631140 RS/RW Out of Pit
BD12-24 2.5 5.0 2.5 5.88 631045 SZ Out of Pit
BD12-24 100.0 101.0 1.0 5.34 631045 SZ Out of Pit
BD12-24 275.0 276.5 1.5 3.03 631045 SY Out of Pit
BD12-24 328.5 335.1 6.6 0.78 631045 RS/RW Out of Pit
BD12-25 160.5 177.0 16.5 0.75 630975 SY Out of Pit
BD12-25 204.0 213.0 9.0 0.85 630975 SY Out of Pit
BD12-25 269.0 271.3 2.3 3.99 630975 SY Out of Pit
BD12-25 304.3 309.0 4.7 1.15 630975 SY Out of Pit
BD12-26 111.3 115.5 4.2 3.45 631060 SY Out of Pit
BD12-27 85.0 119.3 34.3 1.27 630950 SY In Pit
Incl. 86.0 90.3 4.3 2.61 630950 SY In Pit
And 101.9 105.0 3.1 4.01 630950 SY In Pit
And 115.8 119.3 3.5 2.90 630950 SY In Pit
BD12-27 171.0 184.2 13.2 0.58 630950 RS/RW In Pit
BD12-27 196.2 206.4 10.2 1.37 630950 RS/RW Out of Pit
BD12-28 32.5 34.5 2.0 2.32 630975 SY In Pit
BD12-28 43.4 44.1 0.7 5.53 630975 SY In Pit
BD12-29 40.5 69.0 28.5 2.15 630875 SY In Pit
Incl. 44.1 56.0 11.9 3.73 630875 SY In Pit
BD12-29 96.0 103.0 7.0 2.03 630875 SY In Pit
BD12-29 112.5 145.5 33.0 1.61 630875 RS/RW In Pit
Incl. 125.5 128.5 3.0 4.33 630875 RS/RW In Pit
And 135.5 140.5 5.0 4.37 630875 RS/RW In Pit
BD12-29 166.0 174.5 8.5 0.96 630875 SY Out of Pit
BD12-30 83.5 85.5 2.0 1.82 631050 SY In Pit
D12-35 75.0 78.1 3.1 1.47 631940 SY In Pit
D12-36 79.5 103.5 24.0 0.57 632000 SY In Pit
D12-36 166.5 174.0 7.5 3.03 632000 SY In Pit
D12-36 205.5 208.5 3.0 2.05 632000 SY In Pit
D12-36 226.5 251.3 24.8 3.21 632000 NZ In Pit
Incl. 227.5 232.4 4.9 3.08 632000 NZ In Pit
And 236.3 249.3 13.0 4.61 632000 NZ In Pit
D12-37 102.0 106.5 4.5 1.43 632100 SY Out of Pit
D12-37 166.5 171.0 4.5 1.49 632100 SY Out of Pit
D12-37 229.5 233.8 4.3 1.29 632100 SY Out of Pit
D12-38 150.0 151.5 1.5 2.63 632250 SY Out of Pit
CD12-10 27.0 29.0 2.0 4.48 632850 CD In Pit
CD12-11 147.5 151.5 4.0 8.86 632850 CD Out of Pit
CD12-12 127.5 133.5 6.0 4.89 632950 CD In Pit
CD12-12 210.0 211.5 1.5 4.47 632950 CD Out of Pit
CD12-13 32.0 71.0 39.0 2.16 632950 CD In Pit
Incl. 32.0 36.3 4.3 4.79 632950 CD In Pit
And 51.0 63.0 12.0 4.66 632950 CD In Pit
CD12-14 81.0 86.0 5.0 2.14 633050 CD Out of Pit
CD12-15 116.0 138.0 22.0 1.88 633050 CD In Pit
Incl. 123.0 128.0 5.0 2.97 633050 CD In Pit
CD12-16 22.5 25.5 3.0 3.46 633150 CD In Pit
CD12-17 No Significant Assays - 633110 CD Out of Pit
CD12-18 No Significant Assays - 633200 CD Out of Pit
CD12-19 88.0 92.0 4.0 3.99 633250 CD In Pit
CD12-20 45.0 46.5 1.5 2.62 633345 CD In Pit

Cautionary Statement on Forward Looking Information

Certain information included in this press release, including any information as to our future exploration, financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities laws. The words 'expect', 'believe', 'will', 'intend', 'estimate' and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, risks and contingencies, including the possibility that drill programs will not yield the expected results. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Clifton Star Resources to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and that the forward-looking statements are not guarantees of future performance. These statements are also based on certain factors and assumptions. For more details on these estimates, risks, assumptions and factors, see the Company's most recent Form 20-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities. The Company disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, events or otherwise, except as expressly required by law. Readers are cautioned not to put undue reliance on these forward-looking statements.

Neither the TSX Venture Exchange nor its Regulations Services Provider (as the term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Michel F. Bouchard
    President and CEO
    Clifton Star Resources Inc.