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Presentation on theme: "CORPORATE PRESENTATION"— Presentation transcript:

March 2013 Michel Bouchard, President & CEO

2 Forward looking Statements - Cautionary note
Certain information included in this presentation, 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. This presentation uses the terms “Indicated” and “Inferred” Resources. U.S. investors are advised that while such terms are recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them. “Inferred Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Resources may not from the basis of feasibility or other economic studies. U.S. investors are also cautioned not to assume that all or nay part of an Inferred Mineral Resource exists, or is economically or legally minable. The technical information contained in this presentation has been reviewed and approved by Michel Bouchard, President and CEO, Clifton Star Resources inc., who is a Qualified Person as the term is defined in NI TSX:V: CFO

3 Pre-Feasibility Study on The Duparquet Project in 2013
Clifton In a Nutshell : Focus on Duparquet. New NI Resource estimation (January 2013) : 2.4M oz of gold in Measured & Indicated categories and 1.5M oz of gold in the Inferred category. Metallurgy improved with +93 % gold recoveries. Excellent exploration potential to increase the size of the gold deposit. Low permitting & geopolitical risk, in mining- friendly Quebec, Canada. Existing regional infrastructure and mining services. Experienced management. Only 38M shares outstanding (42M, F. D.) Positive PEA Report on Duparquet: NPV of $382M (5% discount rate) and IRR of 19.5%. Capex of $370M, Sustaining capital of $144M, LOM of 16 years. Open Pit. LOM Production of 1.67M oz, 145,000 oz average for first 5 years. Average operating cost of US$726/oz. Pre-Feasibility Study on The Duparquet Project in 2013

4 Management & Directors
Michel Bouchard, B.Sc., M.Sc., P. Geo, MBA - President & Chief Executive Officer Louis Martin, B.Sc., P. Geo Vice-President, Exploration Louis Dufour, CA Chief Financial Officer David Dreisinger, P. Eng., F.C.I.M., F.C.A.E Vice-President, Metallurgy Directors: Ross Glanville P.Eng., CGA, MBA, Chairman of the Board. Michel Bouchard B.Sc., M.Sc., P.Geo., MBA. Philip Nolan – LLB. Peter Gundy LLB. Yves Harvey P.Eng., Ph.D TSX:V: CFO


6 Duparquet- Location-Regional Geology
Destor-Porcupine Break Rouyn-Noranda Cadillac – Larder Lake Break

7 Duparquet Project – Location - Geology

8 Historic Gold Production
Historically produced over 1.5 million ounces of Gold TSX:V: CFO

9 Duparquet Project : PEA Study conclusions
New NI Resource Estimation. Based on 739 drill holes for 231,355 meters, 147,400 samples. 892 Surface Channels, for 2,371 samples. Estimate includes results up to the end of September 2012. Cut off grade of 0.45 g/t for open-pit and tailings. Cut-off grade of 2.00 g/t for the underground.

10 NI 43-101 Reports: Resource Estimates
NI Resources Report Measured Indicated Total M&I Inferred Cut-Off DUPARQUET PROJECT Contained Oz. PEA REPORT InnovExplo January 2013 178,900 t @ 1.51 g/t  8,686 45,912,700 t @ 1.62 g/t 2,396,239 46,091,600t @1.59 g/t 2,404,924 32,146,300 t @1.43 g/t 1,477,164 0.45 g/t Tailings and open-pit 2.00 g/t Underground DUQUESNE PROPERTY Genivar July 2011 1.859,200 t. @ 3.33g/t (199,071 Oz.) 1.563,100 t @ 5.58 g/t (280,453 Oz.) 1.0 g/t

11 Duparquet Project : PEA Study conclusions
Mining Highlights : Open Pit (8,000 t/day). The selected Mining Scenario is constrained by all existing provincial and municipal (Duparquet) infrastructure. Production of 1.67M oz over 16 years. Mine plan: First 10 years: Open pit mining. Remaining 6 years: milling only of stockpiles and old tailings. Calls for the milling of 19.3Mt of mineralized material at a grade of 1.88 g/t gold, 18.2Mt of stockpile material at a grade of g/t gold and 4.1Mt of old tailings, grading 0.94 g/t of gold.

12 Duparquet Project : PEA Study conclusions
Open Pit parameters: Mining Cost = $2.40/t Mining Recovery = 90% Mining Dilution = 10% Pit Slope = 52˚ Milling Cost = $13.61/t Milling Recovery = 93.9% Strip Ratio = : 1 Average Recovery = 93.2% Gold price = $1472 USD, FX = $ (3 year trailing average) *Restriction: no Provincial or Town infrastructures to be displaced in the pit design. * All amounts are in Canadian dollars unless specified

13 Duparquet Project : PEA Study conclusions
Mining Highlights : Average OPEX of $29.38/t milled over LOM, $36.65/t during the first 10 years and $16.62/t during the last 6 years. Cost per tonne of rock milled is $ Mining cost of mineralized material is $2.40/t. Waste mining is $2.15/t. G&A is $4.18/t. Overburden removal is $2.00/t.

14 Duparquet Project : PEA Study conclusions
Milling Highlights : Milling of 8,000t / day or 2.7Mt /year (336 days availability) Mill Capex is estimated at $260.3M. Flowsheet consists of: crusher-stockpile-grinding-flotation- pressure oxydation (POX)- CIL. First ten years: mostly Run of the Mine open pit material Last six years: stockpiles and old tailings. Average milling cost : $13.71/t milled

15 Duparquet Project : PEA Study conclusions
Financial Analysis Capex is $370M, includes $132M for contingencies and indirect costs. Sustaining capital is $144.7M, includes $29.6M for overburden removal. Average operating cost is estimated at US$726 per oz of gold over LOM. Using US$1472 gold (3 years trailing average) as the base case, NPV (at 5% discount) is $382M, IRR is 19.5%. Payback is 4.2 Years. At US$1700 gold, NPV (at 5% discount) is $636M, IRR is 27.5%, payback is 2.9 years.

Route 393 (to La Sarre) Route 388 (to Timmins) Overburden Stock Pile Mill - Office Waste Pile POX Tailing Pond Town of Duparquet (QC) Route 393 (to Rouyn-Noranda) Desulfurized Tailing Pond 1 km

17 Recommended Pre-feasibility Study on the Duparquet Projet
Duparquet Project : PEA Study Recommandations Recommended Pre-feasibility Study on the Duparquet Projet Continue Definition drilling (20,000 m) to upgrade, expand resources. Carry out metallurgical bulk tests to define flow sheet, establish environmental compliance. Test the possibility of producing a saleable gold concentrate. If successful the POX part of the mill could be reduced or eliminated, which would reduce the Capex and Opex in significant ways and would increase the rate of return of the project.

18 Recommended Pre-feasibility Study on the Duparquet Projet
Duparquet Project : PEA Study Recommandations Recommended Pre-feasibility Study on the Duparquet Projet Carry out geotechnical and hydrology studies on the different tailings facilities and major constructions sites. Start community outreach, permitting process and discussions with Hydro-Quebec for the power requirements on site. The PF budget for is $8M, including 20% contingency. The study should be available at the end of March 2014.

19 Duparquet Project / Option Terms
New Amended Option Agreement (September 2012: • $2M, December 1st, 2012 and issue, to the owners, 250,000 shares of Clifton • $10M on December 1st, 2014 • $10M on December 1st, 2015 • $15M on December 1st, 2016 • $15.2M on December 1st, 2017 to acquire 100%, no NSR Prior Terms: $22M on December 2012 and $30M on December 2017 May exercise the option in advance Lift uncertainty / attuned to schedule Enables exploration and development without reverting to dilutive equity financing

20 Clifton Star Milestones for 2013
Prefeasibility Study: Duparquet Project: Start: March 2013 Due: March 2014 Bulk Metallurgical testing to firm up Mill design / Flowsheet New Updated NI Resource Estimation of the Duparquet Project Mid 2013 2013: Drilling, 2 drills, 20,000 m planned. Upgrade and expand resources.

21 Share Structure Common Shares: 38,414,390 Stock Options: 2,245,000
Warrants: 138,000 Fully Diluted: 40,797,390 Market Cap. : $35M Cash: $8M, no debt 2012 Range: L = $0.60 H = $2.31 Price : $0.93 / share As of January 15, 2013

22 Corporate Structure Analyst Coverage Major Shareholders
Passport Capital 18.3% R. C. McKenzie 7.2% Libra 6.5% All Insiders 5% Analyst Coverage Andrew Mikitchook GMP Securities Ltd. Michael Fowler LOM Killian Charles Industrial Alliance Securities Inc. Brian Christie Desjardins Capital Markets

23 Clifton is undervalued: Enterprise value per resource ounce
Source: Company reports and GMP Securities, November ** Take Over Offers Accepted

24 Excellent asset with the Duparquet Project Experienced Management
Why Invest in Clifton Star Resources? Excellent asset with the Duparquet Project Experienced Management Growth Positive PEA : January 2013 Exploration and Project Development Expertise Tight Share Structure Sound financial position

25 Contact us:
Head Office: 1040, Ave. Belvédère Suite 217 Québec, (Québec) G1S 3G3 Canada Phone: Fax: Contact: Julie Blackburn Exploration Office: 75, rue Duparquet Duparquet, (Québec) J0Z 1W0 Canada Phone: ext.: 221 Contact: Louis Martin


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