Clifton Star Resources Inc. ("Clifton Star" or "The Corporation") (TSX
VENTURE:CFO)(FRANKFURT:C3T) is pleased to report that it has received the
results of a positive Pre-Feasibility Study ("PFS") on the Duparquet Project,
situated in north- western Quebec, 50 kilometres by road to the north of the
mining town of Rouyn-Noranda. The PFS was prepared by InnovExplo Inc. with
contributions from Tenova Mining and Minerals (Tenova), Roche Ltd, Consulting
Group (Roche), and Dreisinger Consulting, in accordance with the Standards of
Disclosure for Mineral Projects as defined by National Instrument 43-101 ("NI
43-101"). The contribution of each party is noted below under the section
"Qualified Persons". The complete study will be filed on the Corporation's
website and on SEDAR within 45 days.
The PFS was prepared as a 10,000 tonne-per-day open-pit mining project,
producing an average of 173,000 ounces per year for the first 5 years, and an
average of 158,000 ounces per year over the 11 years of production studied.
Proven and Probable Reserves total 39.4 million tonnes at an average grade of
1.50 g/t Au, from which a total of 1.7 million ounces of gold are projected to
be recovered.
The pre-production capital costs and sustaining costs for the Duparquet Project
are estimated to be $394 million and $118 million, respectively, excluding $24.5
million for closure costs. Contingencies and indirect costs included in the
capital costs and sustaining capital costs total $98.7 million or approximately
26% of all pre-production costs. The average operating cash cost is estimated at
US$775 per ounce of gold over a life of mine (LOM) of 11 years. All in costs are
estimated at US$1,042 per ounce of gold.
The financial analysis, using a long term gold price of US$1,300 per ounce,
indicates a pre-tax net present value ("NPV") (using a 5 % discount rate) of
$222 million, with a pre-tax internal rate of return ("IRR") of 15.1% and a
payback period of 4.3 years. After tax, the discounted NPV is $135 million and
the IRR is 12.1%.
Sensitivity analysis indicates that for a 10% increase in the gold price to
US$1,430, the pre-tax discounted NPV increases to $377 million, with an IRR of
21.1%, and a payback period of 3.4 years. For comparative purposes, at the same
gold price and exchange rate (US$1472, US$1.00 equal to Cdn$1.01) used in the
PEA Study, published in January 2013, the pre-tax discounted NPV is $281
million, the IRR is 17.5%, and the payback is 3.9 years.
A NI 43-101 resource estimate was prepared in August, 2013, by InnovExplo for
the PFS (see details later in this news release), and was used to develop an
open-pit mining plan, resulting in mining 1.89 million ounces of gold. The LOM
is 11 years, with excellent potential for future expansion with a successful
diamond drilling program to convert parts or all of the Inferred Resources. For
the LOM, a total of 1.7 million ounces of gold are recovered.
The PFS considered two possible processing scenarios. The strategy of using the
Pressure Oxidization ("POX") process generated the highest financial return,
while the alternative Concentrate production process resulted in lower capital
and lower operating costs. Based on the current results, the POX process is
favored in the PFS. Metallurgical gold recovery used in the PFS is 90.1%, since
it was decided not to proceed with the recovery of gold from the new flotation
tailings due to an insufficient financial return at the gold price used.
The reason that the Concentrate production alternative generates a lower
financial return than the POX process is related to lower overall revenues from
the concentrate because of higher shipping and third-party smelting costs and
lower payable gold and silver by smelters. The alternative Concentrate
production process would generate 94,500 tonnes of concentrate per year, grading
on average 50 g/t gold (and a similar silver grade). The calculated NPV (5%
discount rate) is $68.7 million and IRR before tax is 8.6% using the same
US$1,300 gold price. However, if the Concentrate production process could be
integrated vertically in a corporate structure, whereby final processing would
be controlled by the same owner, the concentrate production process could
deliver returns similar to the POX process, with a lower Capex of $357 million
and average production cost of US$670 per ounce of gold.
Clifton Star and its consulting firms have identified several technical areas to
improve the mining and milling scenarios. A possible increase in the overall
return is related to the optimization of the pit design, the mining sequence,
and a reduction in the strip ratio. Clifton Star will also pursue the
Concentrate production process scenario by continuing discussions with
processing companies.
Only mineralized material classified as Measured and Indicated Mineral Resources
was considered in the mine plan. The resources considered in the mining plan are
reserves, since they have economic value. The reserves and resources of the
Duparquet Project are presented hereafter.
The May 6, 2013, resource database used in the PFS consists of a total of 849
diamond drill holes, totaling 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.
When the current PFS resource calculation was finalized, a total of 47 holes
were not included because of the cut-off date (May 6, 2013) and will be added
and integrated in a future reserve/resource estimation. The results of these
holes were released during June and August of 2013, and included Hole BD13-22,
with 34 meters grading 5.64 g/t Au, the best intersection of any hole drilled on
the Project by the Corporation. The deposit remains open for extensions at depth
and along strike.
PFS -Highlights & Assumptions (All $ are Canadian except when indicated)
Gold Price (US$/ounce): 1,300
----------------------------------------------------------------------------
Foreign exchange rate (C$/US$): 1.10 : 1.00
----------------------------------------------------------------------------
In-pit and Tailing Reserves mined:
Million ounces 1.89
----------------------------------------------------------------------------
Average total Site Cash Cost
(US$/ounce) LOM, 11 years 775
Average total All in Cost, Average
(US$/ounce) LOM 1,042
----------------------------------------------------------------------------
Average annual operating cash flow pre-tax
(years 1 - 10) ($ Million) 99.1
----------------------------------------------------------------------------
Payback period (years) 4.3
----------------------------------------------------------------------------
IRR pre-tax (%) 15.1
----------------------------------------------------------------------------
IRR after-tax (%) 12.1
----------------------------------------------------------------------------
NPV 5% discount pre-tax ($
Million) 222
----------------------------------------------------------------------------
Mine plan tonnage (11 year, LOM):
39.36 Million tonnes at 1.50g/t Au and
1.94g/t Ag.
----------------------------------------------------------------------------
Mine plan, Tonnage & grade
(grams/tonne, gold) Ore: 29.45Mt 1.69 g/t
Low grade Stockpiles: 5.79Mt 0.90 g/t
Existing Tailings: 4.12Mt 0.94 g/t
----------------------------------------------------------------------------
Strip ratio (Waste: Ore) Ramp and roads included
in pit design, 8.26 : 1
45 degrees and 48 degrees pit
walls.
----------------------------------------------------------------------------
Nominal daily production rate
(tonnes) 10,000
----------------------------------------------------------------------------
Estimated overall gold recovery
(%) - POX scenario 90.1%
----------------------------------------------------------------------------
Total recovered gold (Million
ounces) 1.6
----------------------------------------------------------------------------
Pre-production period, (years) 4
----------------------------------------------------------------------------
Mine life (years) 11
----------------------------------------------------------------------------
Average annual gold production
(ounces):
Average first 5 years : 173,000
Average 11 years: 158,000
----------------------------------------------------------------------------
Pre-production capital ($ Million) 394
----------------------------------------------------------------------------
Sustaining capital (excluding 24.5 million for
closure costs) ($ Million) 118
----------------------------------------------------------------------------
Average milling cost per tonne of
rock $15.96
Average milling cost per tonne of
existing tailings $13.68
----------------------------------------------------------------------------
Average Operating cash cost /t
milled, LOM, 11 years $36.94
Mining plan
The Duparquet Project will first address legacy issues at this brownfield
location. The roaster, dating back to the 1930s, will be demolished and the site
will be cleaned up in compliance with all environmental regulations. The
historical Beattie tailings area will be isolated from Lake Duparquet, and will
be reclaimed. Run-off from the project's watershed will be collected, controlled
and treated. The environmental Capex for historical and proposed mining
operations is estimated at $53.1 million before mining of the open-pit commences
(and these costs have been included in the total capital cost estimates of the
project), and is expected to total $70.4 million over the LOM. Reclamation costs
at the end of the future operations are estimated at $24.5 million.
The Duparquet Project has been designed as an open-pit mine with a planned ore
production rate of 3,650,000 tonnes per year (10,000 tpd). The mill start-up
will occur in the last pre- production year when 535,500 tonnes of ore is
expected to be processed. The mining plan is supplemented by the 4.12 million
tonnes of available tailings.
Due to the proximity of the town of Duparquet, adjacent and to the south of the
mining concessions of the Duparquet Project, it was decided to select a mining
plan to minimize any effect to the Duparquet town or provincial infrastructures.
Click here to See Figure 1 and Figure 2. The mine scenario would therefore be
more socially acceptable, but has the effect of leaving in-situ parts of the
deposit. These untouched portions may be recovered eventually, by further
extensions of the mine life. It is anticipated that permitting and construction
of the mine would take approximately four years.
Pit optimization was performed by InnovExplo using Whittle software from Geovia
(previously Gemcom). The optimized pit shell was generated by a Lerchs-Grossmann
pit optimizer algorithm. All ramps and roads were included. The north wall has a
slope angle of 45 degrees to allow the presence of the ramp and the south wall
slope is 48 degrees.
The milling circuit for the pressure oxidization process includes crushing,
grinding, flotation, pressure oxidation cyanidation carbon-in-pulp (CIP), carbon
stripping, electrowinning, refining and cyanide destruction.
The mining schedule will require the extraction of 39.4 million tonnes of
mineralized material and 291.2 million tonnes of waste rock, resulting in a LOM
strip ratio of 8.26 to 1. The overburden consists of 23.4 million tonnes, and
will be put aside for reclamation work. Accounting for the overburden, the LOM
strip ratio is 8.92 to 1.
Conventional open-pit mining methods will be used, requiring a fleet of 136
tonne capacity off- road haul trucks, hydraulic excavators (16.5 m3), production
drills and various ancillary equipment. Mine operations were designed to support
an average daily production rate of 96,600 tonnes, including overburden.
The pits were designed with a double benching arrangement, and include an 8.5
meter geotechnical safety berm at every 20 meters in vertical depth.
NI 43-101 Resources estimate for the Duparquet Project:
The prefeasibility is based on the latest mineral resource estimation published
in the report dated August 2, 2013. The resource estimate was prepared by
InnovExplo, and is included in the PFS report. The block model was prepared by
using 3D block modelling and inverse distance squared interpolation method. The
updated master resource database currently has a total of 849 diamond drill
holes, totalling 260,948 meters of drilling in length, with 168,500 sample
intervals. It also includes 2,371 samples coming from 892 surface channel
samples - equivalent to 1,827 meters. The database includes the drilling and
assay results up to the cut-off date of May 6, 2013. The purpose of the 2012-13
drilling was mainly to increase the continuity and quality of the resources
between surface and 350 meters depth. The reserve estimate is derived from the
Measured and Indicated resources within the pit shell, and does not include any
underground resources. The potential for increased reserves and a larger pit
exists beyond the current restricted PFS pit when the constraints due to the
roads are removed. InnovExplo states that excellent potential exists to further
increase the resources of the mineralized zones by drilling.
InnovExplo has estimated the total Reserves and Resources for the Duparquet
Project as follow:
-- The In-pit and tailings overall Proven and Probable Reserves total
39,363,000 tonnes at an average grade of 1.50 g/t (1,895,530 contained
ounces of gold). They are exclusive of the following Mineral Resources.
-- The In-Pit resources in the Measured and Indicated category are
18,644,100 tonnes at a grade of 1.32 g/t (789,896 contained gold
ounces). In the Inferred category, there are 18,201,700 tonnes at a
grade of 1.28 g/t (750,616 contained gold ounces).
-- Underground resources in the Measured and Indicated categories are
3,550,200 t at a grade of 2.75 g/t (314,275 contained gold ounces). In
the Inferred category, the total is 5,705,400 t at a grade of 2.96 g/t
(532,059 contained gold ounces).
Overall Reserves and Resources for the Duparquet Project are presented in the
following table:
Duparquet Mineral Resource and Mineral Reserves
Clifton Star Resources Inc.
Mineral Reserve Estimate (Exclusive of Mineral Resources)
============================================================================
Area
-------------------------------
Parameters
Reserves type Tailings In-Pit (PFS) TOTAL
---------------------------------------------
greater than
Cut-off (g/t) 0.45 greater than 0.51
============================================================================
Tonnes (t) 19 600 175 100 194 700
--------------------------------------------------------------
Proven Grade (g/t) 2.06 1.31 1.38
--------------------------------------------------------------
Au (Oz) 1 295 7 372 8 667
============================================================================
Tonnes (t) 4 105 000 35 063 400 39 168 400
--------------------------------------------------------------
Probable Grade (g/t) 0.93 1.56 1.50
--------------------------------------------------------------
Au (Oz) 123 200 1 763 664 1 886 864
============================================================================
Proven Tonnes (t) 4 124 600 35 238 400 39 363 000
--------------------------------------------------------------
+ Grade (g/t) 0.94 1.56 1.50
--------------------------------------------------------------
Probable Au (Oz) 124 495 1 771 035 1 895 530
============================================================================
(i) Whittle parameters used for the reserve pit shell: Mining cost=2.20$/t,
milling cost=16.77$/t, G&A=3.12$/t, Gold price=1,350 USD (exchange rate @
1.05$), mining recovery=95%, milling recovery=93.9%,dilution 10%, pit slope 45
degrees on north wall and 48 degrees on the south wall, refining cost = 5$/oz,
production 10,000 tpd, overburden removal= 0.88 $/t, additional cost related to
old stope= 1,00 $/t, transportation cost from stockpile to mill= 0.88$/t. The
resulting cut-off is 0.51 g/t.
(i) The entire mineral reserve (exclusive of mineral resources) is currently
classified as proven and probable.
Mineral Resource Estimate (Exclusive of Mineral Reserves)
============================================================================
Parameters Area
---------------------------------
Resources type
In-Pit In-Pit
(PFS) (Resource)Underground TOTAL
------------------------------------------------
Cut-off (g/t) greater greater greater
than 0.45 than 0.45 than 2.00
============================================================================
Tonnes (t) - - - -
Measured Grade (g/t) - - - -
Au (Oz) - - - -
============================================================================
Tonnes (t) 1 542 200 18 644 100 3 550 200 23 736 500
Indicated Grade (g/t) 0.48 1.32 2.78 1.48
Au (Oz) 23 800 789 896 314 275 1 127 972
============================================================================
Measured Tonnes (t) 1 542 200 18 644 100 3 550 200 23 736 500
+ Grade (g/t) 0.48 1.32 2.75 1.48
Indicated Au (Oz) 23 800 789 896 314 275 1 127 972
============================================================================
Tonnes (t) 5 702 600 18 201 700 5 705 400 29 609 700
Inferred Grade (g/t) 0.81 1.28 2.96 1.50
Au (Oz) 149 227 750 616 532 059 1 431 902
============================================================================
(i) The Independent and Qualified Persons for the Mineral Resource Estimate, as
defined by Regulation 43-101, are Carl Pelletier, B.Sc., P.Geo., and Karine
Brousseau, P.Eng (InnovExplo Inc), and the effective date of the estimate is
June 26, 2013.
(i) Mineral Resources are not Mineral Reserves and do not have demonstrated
economic viability.
(i) The estimate includes 60 gold-bearing zones and a remaining envelope
containing isolated gold intercepts.
(i) In-Pit results are presented undiluted within Whittle-optimized pit shells.
(i) In-Pit (Resource) results are presented undiluted within the Resource
Whittle-optimized pit shells, exclusive of any material contained within the PFS
Pitshells.
(i) Underground results are presented undiluted and in situ, outside
Whittle-optimized pitshells.
(i) 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 0.90 g/t Au cut-off grades.
(i) 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.
(i) Cut-off grades must be re-evaluated in light of prevailing market conditions
(gold price, exchange rate and mining cost).
(i) In-Pit and Underground: A fixed density of 2.73 g/cm3 was used in zones and
in the envelope.
(i) 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.
(i) 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.
(i) In-Pit and Underground: Compositing was not done over entire drill hole
lengths. Instead, compositing was done on drill hole and channel samples
sections falling within the mineralized zone envelopes (composite = 1 metre).
(i) Resources were evaluated from drill hole and surface channel samples using
an ID2 interpolation method in a block model.
(i) 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.
(i) The In-Pit and Underground indicated category is defined by the combination
of blocks within a maximum distance of 15m of existing stopes and blocks for
which the average distance to drill hole composites is less than 45m.
(i) Ounce (troy) = Metric Tons x Grade / 31.10348. Calculations used metric
units (metres, tonnes and g/t).
(i) The number of metric tons was rounded to the nearest hundred. Any
discrepancies in the totals are due to rounding effects; rounding followed the
recommendations in Regulation 43-101.
(i) 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.
(i) Whittle parameters used for the Resource Pitshells: Mining cost=2.40 USD/t,
milling cost=13.46 USD/t, G&A=4.18 USD/t, Gold price=1,445 USD (exchange rate @
1.01$), mining recovery=90.9%, milling recovery=93.9%, pit slope 52 degrees
Metallurgy and Mineral Processing
Gold mineralization of the Duparquet Project is associated with disseminated
sulphides, dominantly pyrite (95%) and lesser arsenopyrite (5%). As the material
is refractory, the selection of an oxidation method before the cyanidation of a
flotation concentrate became necessary to improve and optimize the level of gold
recovery. The consistency of the recovery results obtained, combined with
current and historical use of this technology elsewhere in the world over the
last 30 years, led to the selection of the conventional pressure oxidation (POX)
technology, utilizing an autoclave, as the preferred method of oxidation for the
Duparquet Project.
This process uses sulphide oxidation at high pressure and temperatures, thereby
speeding up the kinetics and allowing the reaction to be self-sustaining. The
processing facilities will be located on the Duparquet Project site and include:
crushing, grinding, flotation, pressure oxidation, cyanidation, carbon-in-pulp
(CIP), carbon stripping, electrowinning, refining and cyanide destruction.
Metallurgical test work performed by SGS Lakefield indicates that the use of the
pressure oxidation circuit prior to concentrate cyanidation leaching, combined
with flotation tailings cyanidation, improves the projected overall gold
recoveries to 93.9 % for the mineralized material and to 83.9 % for the existing
tailings. After evaluating the financial return of the flotation tailings
cyanidation circuit, it was decided not to incorporate this circuit in the mill
design. Therefore, the overall recovery used in the PFS is 90.1% for gold and
90% for silver.
The process facility was designed for an average feed of 10,000 tonnes per day
("tpd")
An alternative process, the Concentrate production process, was also evaluated.
It consists of: crushing, grinding, flotation, cyanidation and CIL of the
flotation tailings, carbon stripping, electrowinning, refining and cyanide
destruction. The flotation concentrates produced during pilot plant testing
averaged 50 g/t gold (with a similar silver grade) and were sent to different
end users who tested it. The response was positive and interest was genuine.
However, costs associated with bagging, shipping, smelting, and lower payables
for gold and silver decreased the overall recovery and resulted in lower returns
for that process.
Tailings Ponds
The PFS includes two distinct tailings impoundments for the pressure oxidation
scenario. The preliminary designs for the tailings impoundments were prepared by
Roche. Ninety four percent (94%) of the tailings containing very low sulphide,
very low arsenic, and no cyanide will be stored in a flotation thickened
tailings pond. The remaining 6% of the tailings, coming from the autoclave
circuit, will be stored in a specifically designed lined impoundment after
cyanide destruction. The tailings will meet all environmental guidelines.
Additional Technical Information Related to the PFS Study
The Duparquet Project is comprised of the Beattie, Donchester, Central Duparquet
and Dumico properties. The historical Beattie and Donchester underground
production totalled 1.3 million ounces of gold. The historical Beattie Mine site
surface area will be cleaned up and the current buildings demolished and removed
prior to the development of the open-pit mining.
The Corporation has completed the first two phases of its Environmental Baseline
Study and is working with the government, community and First Nations groups
surrounding the project to maintain an open dialogue as the project advances.
Proposed Surface Infrastructure
The proposed mine infrastructure incorporates the following: (Click here to See
Figure 1 and Figure 2)
-- Covered ore pile and mill complex, including a crushing, grinding,
flotation, pressure oxidation, cyanidation with carbon-in-pulp circuit
(CIP) and a refinery;
-- Two tailings ponds, one overburden storage area and three waste rock
dumps;
-- Office complex, a six door open-pit garage and associated services
buildings;
-- New electrical main line from the Hydro Quebec grid, site substation and
site electrical distribution installations;
-- Water treatment plant, pit dewatering system, surface water management.
-- Access roads to the site and on site; parking facilities, ramp system,
green wall.
Mine Closure
Mine closure costs are estimated by Roche at $24.5 million. They are
incorporated in the cash- flow calculations, but are not included as capital or
sustaining capital costs.
Wherever practical, a progressive reclamation approach is recommended, since the
two (2) tailings ponds will be built in stages. At Duparquet, the overburden
disposal area will be reclaimed and this material will be used as capping
material to re-vegetate waste rock and tailings disposal sites.
Capital and Sustaining Capital Costs Estimates
The PFS is based on capital pricing as of the last quarter 2013. The capital
costs include various added contingencies depending on the sectors. The
pre-production capital costs are estimated at $394 million and sustaining
capital is estimated at $118 million. Contingencies and indirect costs total
$98.7 million of the pre-production costs and represent 26% of the costs.
Indirect costs (owner's costs, Engineering, Procurement and Construction
Management ("EPCM") and detailed engineering) of 37 % have been applied on the
process plant and to the other surface infrastructure. Average contingency for
all environmental items is 20 %. Sustaining capital expenditures are estimated
at $118 million over 11 years.
Capital Costs Sustaining
($ million) Capital
($ million)
----------------------------------------------------------------------------
Mine Process plant (Crushing, ore storage,
grinding, flotation, 226.6
pressure oxidation, cyanidation and carbon-in-
pulp, refinery)
----------------------------------------------------------------------------
Tailings ponds, waste dump, water treatment
plant, clean-up of site. 57.1 16.7
----------------------------------------------------------------------------
Mine production equipment. 23.1 91.1
----------------------------------------------------------------------------
Surface installation and equipment 58.2 10.1
----------------------------------------------------------------------------
Overburden removal In operating
costs
----------------------------------------------------------------------------
Owner's cost, site infrastructure 51.0
----------------------------------------------------------------------------
Pre-production revenue -22.0
============================================================================
Total Costs (rounded) 394 118
============================================================================
Total capital costs, LOM. (rounded) 512
Operating Costs
The LOM average operating cash cost is estimated at US$775 per ounce of gold, or
an average of just under $37/t milled.
Average operating costs $/t milled
----------------------------------------------------------------------------
Mining & environment 18.82
----------------------------------------------------------------------------
Processing (POX Option) 15.66
----------------------------------------------------------------------------
G&A 2.46
----------------------------------------------------------------------------
Total 36.94
Financial Analysis
The financial analysis for the Base Case (gold at US$1,300, US$1.00 = CAD$1.10)
indicates a pre-tax NPV at a 5% discount rate of $222.2 million, an IRR of
15.11%, and a payback period of 4.3 years.
SENSITIVITY ANALYSIS
% Change in Before-tax NPV, M$,
PRE-TAX Value Variation IRR (5% discount)
----------------------------------------------------------------------------
+ 10% US$1,430 21.14% 377
----------------------------------------------------------------------------
Gold Price - Base Case - US$1,300 15.11% 222
----------------------------------------------------------------------------
- 10% US$1,170 8.33% 68
----------------------------------------------------------------------------
+ 10% US$852 11.26% 131
----------------------------------------------------------------------------
Average Operating Cash
Costs per - US$775 15.11% 222
Ounce - Base Case
----------------------------------------------------------------------------
- 10% US$697 18.67% 313
----------------------------------------------------------------------------
+10% $433 13.02% 189
----------------------------------------------------------------------------
Initial Capital Costs -
Base Case - $394 15.11% 222
----------------------------------------------------------------------------
($ Million)
----------------------------------------------------------------------------
-10% $355 17.54% 256
Recommendations of the PFS:
Following the positive PFS, InnovExplo recommends that the Duparquet Project be
advanced to the next phase, which would consist of the preparation of a
Feasibility Study.
In order to advance to the feasibility stage, the reserve and resource
calculations will be updated to include the results from the 47 holes that were
received after the last cut-off date. Additional geotechnical and
hydrogeological studies should be undertaken for the proposed site buildings,
tailing management facility, and to better define and ideally steepen the pit
wall slopes from those presented in the PFS report.
Further exploration drilling on the Duparquet Project is recommended to increase
resources and confidence on the geological model. More specifically, the NE-SW
striking secondary zones should be drilled to test their lateral and depth
extensions. In the same way, detailed surface mapping is recommended to enhance
the structural model.
Further definition drilling is recommended to increase Mineral resources and to
upgrade Inferred Resources to an Indicated category.
Additional metallurgical tests related to ore variability and to firm up design
basis are also recommended to further define the flow sheet of the ore treatment
and for final design of the mill facilities.
As well, Roche recommends continuing permitting and social outreach to present
the project to the communities. Additional baseline data will have to continue
to be gathered to complete what has up to this date been collected in order to
adequately assess the project's potential environmental and social effects.
It is recommended that negotiations with Hydro-Quebec be initiated to advance
the work for installation of the power line.
Quality Control and Data Verification
Information of a scientific or technical nature relating to the PFS Study has
been prepared by and under the supervision of Sylvie Poirier, Eng., of
InnovExplo.
The data disclosed, including sampling, analytical and test data, as well as the
current mineral resource estimate, were completed by Carl Pelletier, BSc, Geo,
and Karine Brousseau, Eng. of InnovExplo, independent qualified persons under NI
43-101 guidelines, using the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) Standards on Mineral Resources and Reserves Definition and
Guidelines.
Additional technical information and details regarding verification of data,
including sampling, analytical and test data underlying the information herein,
is contained in the "Technical Report" - Technical report and mineral resource
estimate for the Duparquet Project (according to Regulation 43-101 and Form
43-101F1) prepared by InnovExplo, with effective date June 26, 2013, which can
be found under Clifton Star's profile on www.sedar.com and on the company
website.
Qualified Persons
The PFS was prepared by leading independent industry engineering firms and
consultants, all Qualified Persons under National Instruments 43-101, with the
collaboration of the Clifton Star Resources Technical Group.
InnovExplo Inc.:
Resources estimation:
Carl Pelletier, BSc, Geo
Karine Brousseau, Eng.
Pit design, mine planning, financial analysis, mining capital and
operating costs:
Sylvie Poirier, Eng.
Laurent Roy, Eng.
Denis Gourde, Eng.
Dreisinger Consulting, Tenova Mining and Minerals, and Roche Ltd.,
Consulting group
Hydrometallurgy and laboratory test supervision
David Dreisinger, B.A.Sc., Ph.D., P.Eng.
Flowsheets, Layouts Operating and Capital Cost Estimates
Alain Dorval, Eng.
Philippe Cote, Eng.
Environment, mine closure (Operating and Capital Cost Estimates)
Martin Magnan, M.Sc.A, Eng.
Tailing Pond Design
David Sims, Geo (Qc), P.Geo (NL)
The content of this news release has been reviewed and approved by Sylvie
Poirier, Eng., Carl Pelletier, BSc, Geo, Alain Dorval, Eng. and Philippe Cote,
Eng., Qualified Persons as defined by National Instrument 43-101.
Additional Information
The PFS report will be posted on Clifton Star's website at www.cfo-star.com and
on SEDAR at www.sedar.com, within a 45 day period following this news release.
All other information previously released on Duparquet is also available on
Clifton Star's website at www.cfo-star.com
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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Michel F. Bouchard
President and CEO
Clifton Star Resources Inc.
mbouchard@cfo-star.com
418-914-9922
www.cfo-star.com / @ cliftonstar1
Inform Resources (TSXV:IRR)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Inform Resources (TSXV:IRR)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024
