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

To: W.F. Schwertley who wrote (392)	6/23/1998 2:13:00 PM
From: Abbeydale	Respond to of 653

Subject: Stockwatch: Clifton Mining Company - News Release Date: Tue, 23 Jun 1998 04:42:04 -0700 From: newsout@canada-stockwatch.com Handy & Harman to sell gold and silver from Utah property Clifton Mining Company CFB Shares issued 18,324,144 Jun 22 close $0.65 Tue 23 Jun 98 News Release Mr. William Moeller reports Clifton Mining has entered into a contract with Handy & Harman to sell gold and silver produced at Clifton's approximately 5,100 acre mining property in western Utah. Handy & Harman is a diversified industrial manufacturer whose products include electronic components, specialty fasteners, engineered materials, specialty wire and tubing, and fabricated precious metals. To achieve faster turnaround on concentrates now being produced by the mill, Clifton is currently installing a gold and silver extraction system. Extracting the gold and silver from concentrates will enable Clifton to receive payment for the precious metals within 15 days from Handy & Harman versus 60 to 90 days from smelters. Construction on the system is expected to be completed by the end of June. With the installation of this precious metals extraction system, Clifton gains greater control over the sale of concentrates, focusing on sales that offer higher margins and prompt payouts. The company will continue to produce lead, which will be characterized by larger lot shipments and longer payment cycles. Clifton anticipates booking its first revenue on the contract prior to the company's annual shareholder meeting. The company also has opened two mine portals on the company's George Washington and Lower George shear veins. Initial assays from the face of workings on the two veins have shown encouraging mineral potential. For the George Washington, reported values were 0.035 opt of gold, 17.96 opt of silver and 11.8 per cent lead, while the Lower George showed mineral levels of 0.040 opt of gold, 8.00 opt of silver and 9.2 per cent lead. Preliminary results suggest that each mine portal could contribute 50 tons of ore per day at current levels, and as much as 200 tons per day once they have been fully developed. WARNING: The company relies on litigation protection for "forward-looking" statements. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com

To: W.F. Schwertley who wrote (392)	6/23/1998 2:29:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 653

W.F., I still like Clifton and continue to believe it has execllent potential assuming we will really get a bull market in silver. My only deception with it so far is that they have not been able to increase proven reserves by much since I started following them. The reason is simple, their current focus is on reaching commercial production based on known reserves of 5M ounces silver, not to increase reserves. If silver prices pick up again (and I believe they will eventually, baring a global deflationary collapse), CFB will do better than it is doing now. << Is all the information in the Clifton Mining Header still true and are you still gung ho on Clifton? >> The objective of proving up 50-100M ounces by year end was way too optimistic. I would be pleased if they prove up 20M ounces. But, right now, it seems unlikely they will be there by year end. Cost per ounce will likely be higher than $2...CFB will be mining some open pit material at first, and there the cost will be $2 or less, but most of the material is inderground where the cost of mining a ton is closer to $40, so the average cost of mining an ounce could be near $3...hard to say at this point in time. As for the claim that lead revenus will pay for the costs of silver production, I think it is not far from the truth. On average, each ton has $28 of lead content and the average cost of mining a ton will be in the $40-$50 range. Still, at a market cap of some C$12M, CFB remains an excellent speculation to participate in a silver bonanza. But if silver makes new lows like some think it will, CFB will do same like all other silver stocks.