Clifton Star Resources Inc.
TSX VENTURE : CFO
FRANKFURT : C3T

Clifton Star Resources Inc.

June 28, 2013 08:30 ET

Clifton Star Announces a Substantial Increase in the Gold Resource at its Duparquet Project

QUEBEC CITY, QUEBEC--(Marketwired - June 28, 2013) - Clifton Star Resources Inc. ("Clifton Star" or "the Company") (TSX VENTURE:CFO)(FRANKFURT:C3T) is pleased to announce a substantial increase in the gold resource at its Duparquet Project. The updated estimate of the Measured + Indicated Resource contains 3.11 million ounces with another 1.44 million ounces in the Inferred category. The NI 43-101 resource estimate, dated June 26, 2013, will be filed on SEDAR in the coming weeks.

Resource Highlights include:

  • Total Measured and Indicated Resources have increased to 3.11 million ounces, up 29 %. It represents 68.3% of all resources. Total Inferred resources amount to 1.44 million ounces

  • Total Measured and Indicated Resources have increased to 60.88 million tonnes, up 32 %.

  • In-Pit Measured and Indicated Resources have increased to 2.67 million ounces, up 38 %. It represents 74.6% of all In-Pit resources. In-Pit Inferred resources total 0.91 million ounces.

  • In-Pit Measured and Indicated Resources have increased to 53.23 million tonnes, up 40 %.

The new NI 43-101 resources estimate was prepared by InnovExplo Inc., mining consultants from Val d'Or, Quebec and will be incorporated in the upcoming Pre-Feasibility study on the Duparquet gold project. The block model was prepared by using 3D block modeling and inverse distance squared interpolation method. The updated resource database currently consists of a total of 849 diamond drill holes, accounting for 260,948 meters, with 168,555 sample intervals. It also includes 2,371 samples from 892 surface channel samples, equivalent to 1,827 sampled meters. This database includes all the drilling and assay results up to the cut-off date of May 6th, 2013. A high grade capping of 25g/t Au and a minimum true thickness of 3 meters were used. Mining and milling costs of $2.40USD/t and $13.46USD/t and G&A of $4.18/t USD were used in the Whittle open pit simulations. For the base case scenario, a $1445 USD /oz. gold price and a cut-off grade of 0.45 g/t Au were used for determining the in-pit resources. For the underground resources, a cut-off grade of 2.00 g/t was used for the base case. These parameters are the same as those used in the February 28, 2013 NI 43-101 resource estimation.

The purpose of the drilling since the last resource estimate was to convert existing Inferred Resources to Indicated Resources and to better define the continuity and quality of the open pit resources between surface and a depth of 350 meters. On the basis of contained ounces, more than 68% of total resources (3.11 million ounces) are now in the Measured + Indicated categories. Of these Measured and Indicated Resources, 2.67 million ounces are located within the Whittle pit shell. This new In-Pit resource of Measured + Indicated Resources is composed of 53,235,700 tonnes at an average grade of 1.56 g/t Au.

The Total Mineral Resource estimate is as follows:

- Measured resources: 9,006 ounces (184,700 t at 1.52 g/t)
- Indicated resources: 3,104,165 ounces (60,696,300 t at 1.59 g/t)
- Inferred resources: 1,442,689 ounces (29,684,700 t at 1.51 g/t)

The In-Pit Mineral Resource, base case, is as follows (official cut-off 0.45 g/t):

- Measured resources: 7,711 ounces (165,100 t at 1.45 g/t)
- Indicated resources: 2,666,690 ounces (53,070,600 t at 1.56 g/t)
- Inferred resources: 910,631 ounces (24,092,300 t at 1.18 g/t)

The Underground Mineral Resource, base case, is as follows (official cut-off 2.0 g/t):

- Indicated resources: 314,275 ounces (3,520,700 t at 2.78 g/t)
- Inferred resources: 532,059 ounces (5,592,400 t at 2.96 g/t)

The Beattie Tailings Resource, base case is as follows (official cut-off 0.45 g/t):

- Measured resources: 1,295 ounces (19,600 t at 2.06 g/t)
- Indicated resources: 123,200 ounces (4,105,000 t at 0.93 g/t)

The mineral resources stated in this press release were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) standards on mineral resources and reserves, definitions, and guidelines prepared by the CIM standing committee on reserve definitions and adopted by the CIM council.

Technical parameters used for the estimation:

  • The Independent and Qualified Persons for the Mineral Resource Estimate, as defined by Regulation 43-101, are Carl Pelletier, B. Sc., P.Geo., Kenneth Williamson, M Sc., P.Geo, and Karine Brousseau, Eng. (InnovExplo Inc.), and the effective date of the resource estimate is June 26, 2013.
  • Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
  • Tailing results are presented undiluted and in situ. The estimate includes four (4) Tailings Ponds.
  • In-Pit results are presented undiluted within Whittle-optimized pit shells. The estimate includes 60 gold-bearing zones and a remaining envelope containing isolated gold intercepts.
  • Underground results are presented undiluted and in situ, outside Whittle-optimized pitshells. The estimate includes 60 gold-bearing zones and a remaining envelope containing isolated gold intercepts.
  • Tailings resources were compiled at 0.35, 0.40, 0.45, 0.50, 0.55, 0.60, 0.65, 0.70, 0.80 and 0.9 g/t Au cut-off grades.
  • In-Pit resources were compiled at 0.35, 0.40, 0.45, 0.50, 0.55, 0.60, 0.65, 0.70, 0.80 and 0.9 g/t Au cut-off grades.
  • Underground resources were compiled at 1.5, 2.0, 2.5, 3.0, 3.5, 4.0 and 5.0 g/t Au cut-off grades.
  • Cut-off grades must be re-evaluated in light of prevailing market conditions (gold price, exchange rate and mining cost).
  • Tailings: A fixed density of 1.45 g/cm 3 was used in mineralized zones and waste.
  • In-Pit and Underground: A fixed density of 2.73 g/cm was used in mineralized zones and in the envelope.
  • In-Pit and Underground: A minimum true thickness of 3.0 m. was applied, using the grade of the adjacent material when assayed, or a value of zero when not assayed.
  • Tailings: High grade capping was done on the raw data and established at 13.0 g/t Au for Zone 1, 3.5 g/t Au for Zone 2, 1.7 g/t for Zone 3 and 2.2 g/t Au for Zone 4.
  • In-Pit and Underground: High grade capping was done on the raw data and established at 25.0 g/t Au for diamond drill hole assays and channel samples assays.
  • Tailings: Compositing was not done over entire drill hole lengths. Instead, compositing was done on drill hole sections falling within the mineralized zone envelopes (composite = 0.5 metre).
  • In-Pit and Underground: compositing was not done over entire drill hole lengths. Instead, compositing was done on drill hole and channel sample sections falling within the mineralized zone envelopes (composite = 1.0 metres).
  • Resources were evaluated from drill hole and surface channel samples using an ID2 interpolation method in a block model.
  • The tailings measured and indicated categories were defined based on the drill hole spacing (measured, zones 1 and 2 = 30m x 30m grid; indicated, zone 3 = 100m x 100m grid and zone 4 = 200m x 200m grid).
  • The In-Pit measured category is defined by blocks having a volume of at least 25% within an envelope built at a distance of 10m around existing channels.
  • The In-Pit and Underground indicated category is defined by the combination of blocks within a maximum distance of 15m from existing stopes and blocks for which the average distance to drill hole composites is less than 45m.
  • Ounce (troy) = Metric Tons x Grade / 31.10348. Calculations used metric units (metres, tonnes and g/t).
  • The number of metric tonnes was rounded to the nearest hundred. Any discrepancies in the totals are due to rounding effects; rounding followed the recommendations in Regulation 43-101.
  • InnovExplo is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect the Mineral Resource Estimate.
  • Whittle parameters used: Mining cost=$2.40 USD per tonne mined, milling cost=$13.46 USD per tonne milled, G&A=$4.18 USD per tonne milled, Gold price=$1,445 USD (exchange rate @ Cdn1.01$ equal to US$1.00), mining recovery=90.9%, milling recovery=93.9%, pit slope 52°

Pre-Feasibility Study

Clifton Star has started a Pre-Feasibility Study on the Duparquet Project that will incorporate the results of this new resource estimate as well as the results of the Pilot Plant tests recently completed at SGS Lakefield.

Qualified Persons:

The overall content in this news release has been prepared, reviewed and approved by Louis C. Martin, P. Geo., Vice president Exploration of Clifton Star Resources Inc., who is a Qualified Person as defined under Regulation 43-101 guidelines.

The Resources Estimate was prepared by Carl Pelletier, B. Sc., P.Geo., Kenneth Williamson, M Sc., P.Geo, and Karine Brousseau, P. Eng. (InnovExplo Inc.), the Independent and Qualified Persons for the Mineral Resource Estimate, as defined by Regulation 43-101.

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.

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.

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