Clifton Mining (CFB-Alberta)-Silver Play Message Board

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Gold/Mining/Energy : Clifton Mining (CFB-Alberta)-Silver Play

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Nov 6 12:08 PM EST

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To: Steve who wrote (231)	1/25/1998 1:32:00 PM
From: Claude Cormier	Read Replies (1) of 653

Steve, Clifton is an excellent silver play. However, it is on the high end of the speculative scale. They are not yet in commercial production and are still in the startup phase producing small amounts of metals on a 4-day/24 hours basis. They have enough proven reserves to produce for 6-7 years with their current small 250/ton per day mill. IOW, they have 500,000 tons proven and have production facilities to pull out 75,000 tons per year. The ore has a per ton value of US$85 on average (at current metal prices). Assuming a possible $US40 cost per ton for mining and milling, this kind of grade could allow for an hefty gross profit. They have a second 500-750 tons mill that could come up in production in the years ahead. They need two things to bring this one up. First, $1M or so to complete the mill, second, enough developed ore to feed the mill. Their most immediate problem is to develop access to enough ore so they can feed their first mill. Current work on the Hiden Mine vein, Yellow Cougar Vein and 130-feet foot shaft vein could permit access to enough ore to start operating the first mill on 7-days/24 hours basis within the next 90 days. In conclusion, altough their current proven reserves are small by all standards, Clifton's property has very good potential to increase reserves. They could eventually end up with 50 millions ounces of silver if not a lot more. The company will have the facilities to process 750/1000 tons per day. They need to prove up and develop enough reserves to use this production capacity. The company strategy is not to further dillute the stock. SO they are not looking for a large financing. (They would need between $5 and $10M to fully develop all their veins). Instead they will progressively develop the property using initial cash flow from small scale production. I have recommended Clifton to my subscribers. IMO, CFB is an excellent silver play for the patient speculator. But it isn't without risks. Clifton is dependent on silver prices as well as their ability to develop more reserves.

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