Clifton Star unveils new NI 43-101 resource for entire Duparquet project with 1.71 mln indicated ounces

Clifton Star Resources (CVE:CFO) unveiled Thursday the first 3D block model and integrated resource estimate for its Duparquet project in Quebec, while includes the Beattie tailings resource.
Shares rallied nearly 12 per cent to $1.03 Thursday morning.
The NI 43-101 estimate, prepared by InnovExplo, will be filed on SEDAR in the coming weeks, the company said.
The previous resource estimates on the Duparquet project, which in the past were completed on a separate deposit basis, only had resources in the inferred category, while the new integrated estimate sees more than half of all resources in the higher indicated category, on the basis of contained ounces.
The total mineral resource consists of 1.71 million indicated ounces, or 29.59 million tonnes at a grade of 1.80 grams per tonne (g/t) gold, and 1.67 million inferred ounces, contained within 29.14 million tonnes grading 1.78 g/t gold.
Measured resources also amount to 1,284 ounces, or 19,000 tonnes at a grade of 2.10 g/t gold.
The in-pit mineral resource contains 1.28 million indicated ounces  from 21.92 million tonnes at 1.81 g/t gold, and 1.14 million inferred ounces from 23.15 million tonnes grading 1.53 g/t gold, both at a base case cut off of 0.60 g/t gold.
"We are pleased to have put together the first comprehensive geo-statistical estimate of resources for the Duparquet Project," said president and CEO, Michel Bouchard.
"Close to half of the resources are now in the Indicated category and most of the mineral resources are within the In-Pit shell. We can still upgrade the resources category by definition drilling, and continue to expand the zones with exploration drilling."
The estimate is based on 223 surface channel samples and 668 surface holes, totalling 211,259 metres, and 134,766 samples.
The company said gold recovery of 92.8 per cent was incorporated, based on recent metallurgical testing at SGS Lakefield.
Combined mining and milling costs of $24 per tonne were also used in the Whittle open pit simulations, while a base case C$1380 per ounce gold price and a cut-off grade of 0.60 g/t gold were used for determining the in-pit resources.
The same 0.60 g/t gold cut-off was used for the Beattie tailings, where most of the resource is in the indicated category, and includes some measured resources, the company said. This tailings resource is based on 258 holes and 450 samples.
For the underground mineral resource estimate, a 2.0 g/t cut-off and a minimum true thickness of 3 metres were used.
"The combined mining and milling costs used in the pit simulation for the base case cut-off are conservative at $24/t, while the gold price is based on the last 3 year average," continued Bouchard.
"The preliminary waste/ore ratio at around 8:1, but the offset is the relatively high gold grade at Duparquet. Furthermore, preliminary sensitivities studies indicate that lowering of mining and milling costs, as well as pit design changes, could allow for a lower cut-off and an increase in the resource."
Indeed, based on the current in-pit resource estimate, Bouchard said Clifton Star will evaluate the factors in assessing the economic potential of the Duparquet project through a preliminary economic assessment - targeted for the end of 2012 assuming "normal consulting firm availability".
Clifton Star has a come a long way recently and is one to watch, according to mining research analyst Peter Campbell of Jennings Capital. The Duparquet project is a multi-million ounce, open pit deposit with scores of potential, making it a possible target for big gold producers looking to de-risk their assets.
After almost eight months of hiatus, Clifton started fresh in March, as the company resumed trading with president and CEO Bouchard, at the helm, who took over from former chief executive Harry Miller in November.
Bouchard sees the recent $585 million Trelawney Mining acquisition by Iamgold (TSE:IMG) (NYSE:IAG) as encouraging, as Trelawney is "maybe a year ahead of Clifton, in terms of work sequence, in determining the deposit it has at Côté Lake."
While Iamgold shelled out north of $70 an ounce in the ground for the company, Clifton Star is valued at less than $20 an ounce, leaving significant potential upside.
Duparquet is located along the prolific Destor-Porcupine fault in the Abitibi region of Quebec. Osisko Mining (TSE:OSK) dropped out of the joint venture at the project last year, which saw Clifton resume 100 percent control.
"The company has done a great job in advancing the project from what it was when Osisko left," says Campbell, "and this is going to raise people's attention to the asset."
Since March, the company has announced robust drill results, and several metallurgical test results that indicate gold recoveries of 93 percent.
The new NI 43-101 compliant resource assessment report announced today also goes a long way, allowing for one data bank for the whole project.
Drill results from 2012 at the project include 18 metres of 3.16 g/t gold in hole BD10-160 ext, and 7 metres of 2.37 g/t gold in hole BD10-172 ext.