GOLD: PEA is positive for Duparquet project

QUEBEC – Clifton Star Resources of Quebec City has received a positive preliminary economic assessment for its Duparquet gold project 45 km northwest of Rouyn-Noranda. The measured and indicated resources in the selected pit design are 23.10 million tonnes at a grade of 1.56 g/t Au. Inferred resources are 14.45 million tonnes at a grade of 1.10 g/t. The Duparquet property has underground potential and a historic tailings area as well as an open pit portion.

The study was prepared by InnoveExplo. It suggested the project will have a pre-tax net present value of $382 million (5% discount), pre-tax internal rate of return of 19.5% and a payback of 4.2 years. These numbers were derived using a gold price of US$1,472/oz. If the price were to rise to US$1,700/oz, the NPV would be $621 million, with an IRR of 27.6% and a payback period of 2.95 years.

Clifton expects pre-production capital to be $370.3 million plus sustaining capital of $144.7 and closure costs of $22.6 million. A truck-and-shovel open pit will be mined at a rate of 8,000 t/d following three years of permitting and construction. The mill flowsheet will include crushing, grinding, gravity, flotation, pressure oxidation and carbon-in-pulp leaching. Details of the Duparquet project are available at CFO-Star.com.