Clifton Star hits "significant" mineralization at depth at Duparquet

Clifton Star Resources (CVE:CFO) unveiled Thursday results from another 20 drill holes at its Duparquet project in Quebec, forming part of the 2012 drill program that has hit what the company called "significant mineralization" in the North, South and Syenite zones on two deposits.

The results on the Beattie and Donchester properties show good continuity, the Quebec-based miner said, and extend at depth.

Clifton currently has two drills working on the project, with the latest highlights including 97.9 metres at 2.2 grams per tonne (g/t) gold less than 300 metres from surface in hole D12-04 in the North Zone, and mineralization continuing at depth, the miner said.

The company also said it returned 11.9 metres at 3.81 g/t gold in hole BD10-129ext at a vertical depth of 435 metres below surface, also in the North Zone, this time on the Beattie property.

Meanwhile, in the South Zone, the company hit 110.5 metres of 0.67 g/t gold in hole D12-01, showing the potential thickness of the target near surface, and 27 metres of 1.78 g/t gold in hole D12-09 in the Syenite Zone.

The latter intersection is located 80 metres outside of the east wall of the current Donchester pit, at a vertical depth of 220 metres, highlighting the possibility of increasing the size of the current planned pits, Clifton said.

The company noted that none of the 2012 drilling results for the project were used in the recent NI 43-101 resource estimate from May, the first integrated resource report on the project.

The resource, which included the Beattie, Donchester, Dumico and Central Duparquet properties, as well as the Beattie tailings, reported 1,284 ounces of gold in the measured category, 1.71 million ounces of gold in the indicated category and 1.67 million ounces of gold in the inferred category.

In the first half of this year, the gold explorer has drilled an additional 41 holes totalling 16,635 metres on the project to upgrade and extend the footprint of the deposit.

The company said the drilling from 2012 will be included in an updated mineral resource estimate - due out later this year.

Clifton has started a preliminary economic assessment (PEA) on Duparquet and expects to have the report conclusions by the end of 2012.

The Duparquet project covers 7.7 kilometres of strike along the prolific Destor-Porcupine break, located in the Abitibi region of Quebec.

The project area includes the Beattie and Donchester gold mines that historically produced a total of 1.47 million ounces of gold by underground mining from 1933 to 1955.  

The mineralization on the property is associated "with a 400 metre wide syenite intrusion in contact with sediments to the south and volcanic rocks to the north," the company said.

In March, Clifton released the results from the first seven holes at Duparquet in 2012, totalling 4,905 metres. These results included 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.

Aside from robust drill results, the company has also released several metallurgical test results that indicate gold recoveries of 93 per cent.

Clifton has a come a long way recently and is one to watch, mining research analyst Peter Campbell of Jennings Capital told Proactiveinvesotrs in May.

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.

From mid-March to the end of June, Clifton drilled 34 holes totalling 11,730 metres, 20 of which were released today. Of the 34, 28 were new holes collared from surface, and six were hole extensions.

The drilling continues to focus on the North Zone, with the aim of outlining a mineral resource amenable to both open pit and bulk underground mining, with results so far "very encouraging", the company said.

The mineralized envelope of the North Zone can be up to 80 metres wide, and has been traced along strike for 2.6 kilometres.

All of the zones are open along strike and at depth, with the deepest intersection at approximately 650 metres below surface, Clifton said.