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Gold/Mining/Energy : Clifton Mining (CFB-Alberta)-Silver Play -- Ignore unavailable to you. Want to Upgrade?

To: Steve who wrote (231)	1/24/1998 7:06:00 PM
From: Dan P	Read Replies (1) \| Respond to of 653

Steve: I haven't talked to management in a little while, but this is a company in production of silver and lead, with an excellent property. They are in the process of raising more funds to support an expansion of the production, but it remains at a fairly low market cap. Raising the necessary funds is undoubtedly the main problem with this company and many other juniors, but having said that, any company, including this one, that has survived the Bre-X fiasco and the sharp drop in gold, has a good chance of getting through. There are always risks, and this has to be regarded as a speculative issue. On the other hand, the management of the company is seasoned and very conservative, and the property in Utah is one of the best around. I think that it is not fully valued at this point and I doubt that anyone would get seriously hurt in this stock buying at these prices. Remember, we are at the low end of the junior resource cycle, and it is likely that purchases of many promising stocks at this venture should do well overall. Not knowing your personal situation, and even if I did, I could not advise you whether or not to purchase Clifton at these prices. All I can say is that I personally believe that it is a buy at these prices. Regards Dan

To: Steve who wrote (231)	1/25/1998 1:32:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to 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.