Osisko Mining Corporation

Osisko Mining Corporation
Clifton Star Resources Inc.

Clifton Star Resources Inc.

December 06, 2010 08:52 ET

Osisko and Clifton Star Intersect 42 Metres Averaging 3.38 g/t Au at Duparquet

MONTREAL, QUEBEC--(Marketwire - Dec. 6, 2010) - Osisko Mining Corporation ("Osisko")(TSX:OSK)(FRANKFURT:EWX) and Clifton Star Resources Inc ("Clifton")(TSX VENTURE:CFO)(FRANKFURT:C3T) are pleased to announce results from twenty-one additional holes from the 2010 drill program at the Duparquet Project, located in the Abitibi region of Quebec. Significant intersections from the new drill holes on the Beattie property include 41.6 metres averaging 3.38 g/t (BD10-320), 33.0 metres averaging 2.93 g/t Au (BD10-321), 48.5 metres averaging 1.98 g/t Au (BD 10-316), 21.5 metres averaging 3.76 g/t Au (BD10-312) and 68.7 metres averaging 1.38 g/t Au (BD10-319). Assay results are summarized in the table below: 

Hole No. Section Az./dip From (m)    To (m) Length
Au g/t
BD10-278 630600E 180/60   393.0 412.5 19.5 0.73
BD10-290 630500E 0/60   263.0 284.0 21.0 2.63
And       446.7 465.1 18.4 1.14
BD10-310 630600E 180/45   73.0 79.0 6.0 1.99
BD10-311 631300E 0/50   49.5 63.0 13.5 0.71
And       126.0 127.5 1.5 8.46
BD10-312 631300E 0/69   76.5 98.0 21.5 3.76
BD10-313 631300E 0/80   100.5 123.6 23.1 4.20
including       121.5 123.6 2.1 14.40
BD10-314 631200E 0/50   74.0 85.8 11.8 2.27
BD10-315 631200E 0/70   236.0 241.4 5.4 3.77
BD10-316 630100E 180/45   83.0 131.5 48.5 1.98
And       269.5 293.5 24.0 1.29
BD10-317 630100E 180/67 99.5 135.5 36.0 2.52
BD10-318 630150E 180/54 95.0 105.5 10.5 3.92
BD10-319 630150E 180/74 111.0 179.7 68.7 1.38
BD10-320 630150E 0/45 53.5 95.1 41.6 3.38
BD10-321 630150E 0/58 63.5 96.5 33.0 2.93
BD10-322 629950E 180/60 54.5 81.0 26.5 1.73
BD10-323 630000E 185/57 35.3 74.5 39.2 1.30
And     117.0 130.0 13.0 1.45
And     197.5 243.0 45.5 1.63
BD10-324 630000E 190/45 63.0 103.0 40.0 2.24
BD10-326 630050E 170/55 29.0 42.0 13.0 1.00
BD10-327 630050E 180/55 76.1 100.3 24.2 2.04
BD10-328 630050E 180/63 77.0 101.0 24.0 1.87

Drill hole BD10-325 encountered old underground mine workings did not intersect significant mineralization.

Drilling in 2010 has focused on three properties: Beattie, Donchester-Central Duparquet and Duquesne, for an overall drilling campaign of 122,800 metres that is now completed. The Phase I drill program comprised 69,800 metres of drilling on the Beattie property with a total of 219 holes. All significant results for the Beattie drill program have now been disclosed. The Phase Two drilling program of 20,300 metres comprised 69 holes on the Duquesne property (all results disclosed as well), and the Phase Three program of 32,700 metres on the Donchester Property and Central Duparquet comprised a total of 96 holes. Results for the latter are pending and will be disclosed as they are made available.

Osisko and Clifton are also pleased to announce that GPR International Inc. has been contracted to fly a high-resolution airborne geophysical survey that will include total field magnetics, time-domain electromagnetics and radar altimetry for digital elevation modeling. Survey lines will be spaced 100 m apart for a total of approximately 1030 line-km. The survey will cover the Beattie, Donchester and Duquesne properties as well as intervening ground and will be done in collaboration with two other public companies working in the area. This survey should allow for better interpretation of trends of structurally-controlled gold mineralization on the properties. Results should be available before the end of January 2011.

Osisko has the right to acquire a 50% interest in the Duparquet project in consideration for (1) total exploration expenditures of $70 million from 2010 to 2013, and (2) extending loans to Clifton to fund option payments on the property of $8.5 million for 24 months and $22.5 million for 36 months. These loans would carry interest at 5% and can be converted into stock at Clifton's choice. Osisko had also extended a $6 million credit line to Clifton, to be drawn prior to January 1, 2010, which was not utilized.

All NQ core assays reported above were obtained by standard 50 g fire assaying-AA finish or gravimetric finish at ALS Chemex laboratories in Val d'Or, Quebec. Reported drill core weighted averages were calculated using a minimum of 0.60 g/t Au over successive intervals of 20 metres. The lengths of mineralized intervals of less than 20 metres were minimized, and an upper cut-off of 30 g/t Au was applied to individual assays where indicated. Intersected drifts or lost core within mineralized intersections were incorporated as blank intervals. The true widths are estimated at approximately 50% to 75% of the core lengths reported above.

Osisko follows strict QA-QC protocol measures in keeping with industry standards and regulatory reporting requirements. Mr. Robert Wares, P. Geo. and Executive Vice-President of Osisko, is the Qualified Person who has reviewed this news release and is responsible for the technical information reported herein, including verification of the data disclosed including the sampling, analytical and test data underlying the technical information.

Forward-Looking Statements

Certain statements contained in this press release may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that Osisko and Clifton (collectively the "Parties") expect to occur, are forward looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential", "scheduled" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur including, without limitation, the commencement of commercial production. Although the Parties believe the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, without limitation that all technical, economical and financial conditions will be met in order to warrant further development of the Duparquet Project, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include gold prices, access to skilled consultants, mining development personnel, results of exploration and development activities, the Parties' limited experience with production and development stage mining operations, uninsured risks, regulatory changes, defects in title, availability of personnel, materials and equipment, timeliness of government approvals, actual performance of facilities, equipment and processes relative to specifications and expectations, unanticipated environmental impacts on operations market prices, continued availability of capital and financing and general economic, market or business conditions. These factors are discussed in greater detail in Osisko's most recent Annual Information Form and in Clifton's most recent Management Discussion and Analysis filed on SEDAR, which also provide additional general assumptions in connection with these statements. The Parties caution that the foregoing list of important factors is not exhaustive. Investors and others who base themselves on the Parties' forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. The Parties believe that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.

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