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.

Harry Norman of Proactive Investors talks to Michael Bouchard, CEO and President of Clifton Star Resources. Listed on the TSX Venture Exchange Metals And Mining Sector. Stock ticker CFO, share price $1.35 Canadian, market capitalisation $48.3 million Canadian. Clifton Star Resources is also listed on the Frankfurt Exchange.www.cliftonstarresources.com. 

Harry Norman:Please would you talk investors through Clifton Star Resources flagship project, the Duparquet Gold Property in Quebec, which has historical production of 1.5 million ounces of gold?

Michael Bouchard:Well the property is located 35km north of Noranda, and the Duparquet Project is home of the Beattie gold mine and Donchester gold mine which produced 1.5 million ounces from the early 1930s to the early 1950s. They produced at the time when gold was less than $50 an ounce, and Mineralization was controlled by a regional structure that stretched out west, up to Timmins Ontario, where over 100 million ounces have been produced up until now. We have 7km of that favorable structure on the property, and we have been drilling there since 2008. The actual resource estimate that we have on Duparquet Project right now is 2.7 million ounces of gold. We have a new report, a new estimation coming out this month.

Harry Norman:Clifton Star Resources has plans to bring the Duparquet gold property back into production. What has changed since 1956 when the Duparquet underground mine was closed?

Michael Bouchard:Well a lot of things have changed since then, but the main two things I would say is the gold price, which was $50 in that time period and nowadays is around $1650 an ounce, which means that a lot of deposits now are being re-rated. The second thing is of course technology; new mining technology enables to mine low grade open pit deposits very efficiently. And also the metallurgical processes are much more efficient these days and environmentally friendly compared to what it was during those days. Just to give you an idea of how metallurgy has improved, we just brought out results of tests that show that we can expect 93-94% recovery of gold from the Duparquet gold zone, and before that, historically, the best that they did was 83% so a 10% improvement related to modern techniques.

Harry Norman:Michael, Duparquet has an NI 43-101 gold resource of 2.7 million ounces of gold. Please will you talk us through this resource, and the possibility for growing the gold resources at Duparquet?

Michael Bouchard:Absolutely, 2.7 million ounces is what we’ve got now according to the last reports. There is a new one coming up at the end of May that, we think, will improve this number, because first of all, we’ve added 85 new holes in the calculation and the second thing is the fact that there is still a lot of unexplored grounds on the property. That new resource estimation will cover a distance of about 3km, out of the 7km that the property is hosting, so we think that there is a fair chance of continuing to find ore on the balance of the property, and as well as at depths since most of the drilling we have done so far is at depths of less than 400m, and most mines in the Abitibi region go down to 2km depth, so there is that third dimension that we have to explore.

Harry Norman:Clifton Star Resources has a new core team, with you, Michael Bouchard, Louis Martin and Louis Dufour all joining the company within the last 6 months. What does the Clifton Star Resources team bring to the challenges of taking Duparquet back into production?

Michael Bouchard:Well, I think that we bring a lot of mining experience, all of us have more than 20 years of experience in our field and there is a lot of knowledge that comes with that team. For instance, Louis Martin  our VP exploration was with Noranda Exploration, and he modeled the Noranda Camp. The first modeling in 3D was done by Louis, he is doing the same on the Duparquet Project now. Louis Dufour, our CFO, had the same function with large public companies prior to joining us, and he has put together big financing deals over his career, so I think we will need his expertise in the future. Myself, I have got more than 30 years in the mining business and I have been successful in finding ore bodies and putting them up to the production stage. Now we are all from Quebec, and Quebec is a great place for mining, it has a very renowned workforce, there is mining services available, infrastructure is top notch, it is mining friendly, there is a clear permitting process and as you know since it is in Canada it is politically stable.

Harry Norman:Clifton Star currently has $13 million Canadian in the bank; please will you talk investors through the company’s capital structure and financial situation going forward.

Michael Bouchard:That’s right we‘he got $13 million in the bank and more importantly we’ve got no debt right now. The share structure is pretty tight; we only have 35 million shares outstanding, it would be 40 with the full dilution of options. I would say that about 30% of the shares are in good strong hands. We don’t expect to need funding in the short or medium term, since we are doing the preliminary economic assessment study after we get the resource estimation, and we’re drilling with two drills right now so we think that we will end up at the end of the year with a very sound financial position. At that point we will see what kind of needs we have to develop the project further.

Harry Norman:What can investors expect from Clifton Star Resources over the next 12-18 months? 

Michael Bouchard:Well on the short term, we will put out the new resource estimation at the end of May, and after that, we will start the preliminary economic assessment study, which will take us until the end of the year. In the meantime we are still drilling and there will be news coming out from the drilling. That’s for this year, we have got our work cut out for us and after that I can project in 18 months we will be on the lookout for developing the project and getting the financing to do that.

Harry Norman:IAMGOLD has just offered to acquire Ontario focused gold junior Trelawney Mining, valuing Trelawney at $505 million Canadian NET of cash. What are your thoughts on the way that IAMGOLD values Trelawney and the way that the market currently values Clifton Star?

Michael Bouchard:Well that is a very interesting deal that IAMGOLD just put out, Trelawney have just released a new resource estimation on their deposit, and when you look at the price they are offering for the company, it values that deposit at a value per ounce of $75. Now, when you look at Clifton, with the actual ounces that we have, 2.7 million ounces, and a capitalization of 50 million, we are valued right now on the basis of less than $20 an ounce in the ground. So if you take that metric, I think that Clifton is clearly undervalued, and with the upcoming new resource estimation, we will probably confirm the fact that we are deeply undervalued.

Many like Trelawney with significant resources and a low-risk profile will likely increasingly be looked at as potential acquisition targets, with the $585 million deal providing a "wake-up call" for gold producers with cash to spend, says mining research analyst Peter Campbell of Jennings Capital.

Last month, Iamgold said it agreed to buy Trelawney for $585 million in cash, adding the Côté Lake gold deposit in northern Ontario to its mining portfolio.

The deal price was 42 percent higher than Trelawney's closing price the day before the transaction was announced, and also came in at slightly north of $70 per ounce in the ground.

Campbell says that the entire junior gold mining sector is undervalued, as just a few years ago, these transactions would have been priced at around $100 per ounce in the ground, when gold was trading at just $800 an ounce.

"The typical thing in my opinion is for gold producers to look for assets far afield, but the Trelawney deal proves that there are great acquisition opportunities right here in their own backyard," Campbell notes.

Canadian junior Trelawney is developing the 516 square kilometre Côté Lake deposit, where the resource is estimated to contain 0.9 million ounces of indicated gold and 5.9 million ounces of inferred gold, with significant exploration and expansion potential near the current resource.

Campbell says the deal was, in his view, agreed at a "firesale price", as the Côté Lake deposit is "no way fixed in size and has the potential to grow substantially to 8 million ounces."

Mineralization at the deposit has been intersected over a strike length of 1,200 metres, a horizontal width of 100 to 300 metres and a depth extent of more than 500 metres.

"Iamgold is getting a sure thing for $70 an ounce versus all the risk and time involved in making a new discovery on its own - and it's probably going to cost Iamgold about the same amount in the end to bring a new project to the same stage as Côté Lake," says Campbell.

"Right now, with valuations at the extreme low end of the scale,, acquisition costs are very attractive."
Clifton Star Resources' (CVE:CFO) CEO Michel Bouchard says he believes the acquisition of Trelawney also provided Iamgold with a more balanced geographic portfolio, improving its risk profile with assets in a politically stable country that hosts excellent mining infrastructure.

On the negative side, however, buyers of companies like Trelawney will have to wrap their heads around higher Canadian dollar costs, says Campbell, but he adds that many gold producers like Iamgold have low exposure to Canada with operations elsewhere.

Trelawney's Côté Lake is halfway between Timmins and Sudbury - two of Canada's largest mining camps - on a paved highway.

"If you want access to people, engineers, equipment and suppliers, there is no better place to be.
"The price Iamgold offered is easily justifiable based on the 7 million ounce size of the deposit alone, with a strong possibility for a competing bid," Campbell says.

But Campbell notes that Trelawney has been trading right around the offer price ever since the acquisition was announced, signifying that investors believe the deal will take place.

There are several worthy juniors in the Canadian gold space that stand to benefit from this transaction, as many gold producers with a healthy balance sheet could also soon start looking for multi-million ounce, bulk tonnage deposits that will lower their risk profile and boost production.

Newcastle Minerals

For example, Newcastle Minerals (CVE:NCM), which actually counts Trelawney as its largest shareholder, is also active in Northern Ontario's Swayze Greenstone Belt, thought to be the southwestern extension of the prolific gold-producing Abitibi Greenstone Belt.

Following last year's successful takeover of Augen Gold, Trelawney now controls a 55-kilometre strike-length of the Swayze Belt.

Newcastle’s 100 percent-owned Swayze belt claims cover an area of 17,000 acres in three separate claim blocks that are either surrounded or adjoin Trelawney's projects.

Within the Swayze Belt, Newcastle's 6,600-hectare Chester project is less than a kilometre away from Trelawney's main Côté Lake deposit. A 1,050 metre drill program at Chester encountered anomalous gold and similar alteration and fracturing as that found at Côté Lake.

Meanwhile, Newcastle's Neville/Potier property comprises 15,480 acres in the middle of Trelawney's land package while its 1,480-acre Mollie River property adjoins the east of Trelawney's Côté Lake.

The junior explorer is planning a spring exploration program in Ontario's Swayze Belt that will include geophysical surveys and diamond drilling to follow up on encouraging prior results.

Temex Resources

Another with nearby assets includes Temex Resources (CVE:TME), whose Juby Main Zone contains an NI 43-101 compliant resource of 934,645 ounces of gold in the indicated category, and 905,621 ounces of gold in the inferred category, both at a cut-off grade of 0.40 g/t gold.

The Juby Main Zone forms part of the Juby gold project, located in Tyrrell Township in northeastern Ontario, 100 kilometres south of Timmins - Canada's largest gold camp.

The project is also situated along the southwestern extension of the Larder Lake - Cadillac Fault Zone, between AuRico Gold's (TSE:AUQ) Young-Davidson gold mine and Trelawney's Côté Lake.

Earlier this month, the company said it had started an initial diamond drill program on the recently-acquired Golden Lake property located on strike and to the west of its Juby Main Zone.

With the recent acquisition of the Golden Lake property, Temex now controls 4,500 metres of strike length along the prolific Tyrrell Structural Zone.

The first phase drill program at Golden Lake, planned to be 3,000 metres in around 8 holes, will test the mineralized horizons on and near the Tyrrell Structural Zone along a strike length of 600 metres.

The aim will be to provide sufficient drill data to estimate additional inferred resources, which is expected to ultimately lead to an increase in the NI 43-101 gold resource for the Juby Main Zone.

Jennings' Campbell says that Temex also has the benefit of the Whitney gold project in Timmins Ontario, which is held under a joint venture owned 60 percent by Temex, and 40 percent by gold giant Goldcorp (TSE:G). Recent results from Whitney included 9.37 g/t gold over 5.00 metres, including 57.6 g/t gold over 0.72 metres.

Rubicon Minerals

Other notable Ontario gold explorers include Rubicon Minerals (TSE:RMX), with its Phoenix gold project in the Red Lake district, and Treasury Metals (TSE:TML), with its Goliath gold project 20 kilometres east of Dryden.

Rubicon recently announced that its budget for the Phoenix gold project to the end of the third quarter this year has increased by $27.8 million, to $82.8 million.

The gold explorer controls 100 square miles of premium exploration ground in the Red Lake gold district, which hosts Goldcorp’s prolific Red Lake Mine.

Last June, the company received the results of the PEA on its F2 Gold System, part of the Phoenix project, indicating a cash cost as low as US$214 per tonne of processed material.

The report, prepared by AMC Mining Consultants, estimated a net present value of $433 million, at a five percent discount rate, and a pre-tax 28 percent internal rate of return, with a payback period of 3.3 years from the start of production.

Rubicon is carrying out a 12-month $55 million program to optimize some aspects of its preliminary economic assessment. This program, according to the company, contemplates a total of 68,000 metres of drilling, of which, as of late March, 41,000 metres remained to be drilled before the third quarter this year.

Treasury Metals

Treasury Metals, meanwhile, initiated in January a 20,000 metre core drilling program at its Goliath gold project in Ontario, as the company seeks to test high-priority targets found outside the current resource area.

The property, which rests 20 kilometres east of Dryden, covers the Thunder Lake gold deposit and is host to a number of highly prospective targets that show potential for gold mineralization.

Last November, the company announced an updated NI 43-101 compliant resource estimate for its project consisting of around 1.7 million combined indicated and inferred ounces.

The resource estimate, completed by ACA Howe International, showed an indicated mineral resource of 810,000 ounces of gold equivalent, an increase of more than 200 percent from the July 2010 resource estimate.

In addition, the property is now estimated to host an inferred mineral resource of 900,000 ounces of gold equivalent. Both categories include both potential surface mineable, plus underground resources.

The company has consistently drilled high grade results from the project. In October, highlights included hole TL11-220, which returned 4.0 metres at 8.8 grams per tonne (g/t) of gold in the Western Main Zone, and 3.5 metres at 14.9 g/t gold from the C-Zone.

Probe Mines

Campbell's top pick in the region remains Probe Mines (CVE:PRB), which is focused on the Borden Lake gold project located near Chapleau, Ontario that hosts a four million ounce open pit deposit. The discovery also remains open for expansion, he says.

Clifton Star Resources

Moving to the Quebec region, Clifton Star Resources (CVE:CFO) is one to watch, according to Campbell, as the company's Duparquet project in Quebec is again a multi-million ounce, open pit deposit with scores of potential.

After almost eight months of hiatus, Clifton started fresh in March, as the company resumed trading with president and CEO, Michel F. Bouchard, at the helm, who took over from former chief executive Harry Miller in November.

Bouchard sees the Trelawney transaction 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.

In February, the company filed an updated NI 43-101 resource report for its Donchester property at Duparquet, which 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."

The NI 43-101 compliant report for Donchester from February gave an inferred resource of 11.01 million tonnes with an average grade of 3.06 grams of gold per tonne for 1.05 million contained gold ounces, at a cut-off grade of 1.5 grams of gold per tonne, and using a top-cut of 8.0 grams per tonne.

Since then, the company has announced robust drill results, and several metallurgical test results that indicate gold recoveries of 93 percent from Duparquet. As well, a new NI 43-101 compliant resource assessment report is due out this month.

The new report, which will be followed by a preliminary economic assessment, will allow for one data bank for the whole project.

Eastmain Resources

Also in Quebec, Eastmain Resources (TSE:ER) recently announced a 40,000-metre drill program is underway on its wholly-owned Clearwater project, located in James Bay.

The company said that the objectives of the program are to continue to expand the limits of the Eau Claire gold deposit at Clearwater, and test new prospective resource targets.

Estimated potential open pit resources within the Eau Claire and 450 West Zone, as of April 2011, contained 452,000 ounces gold (502,000 ounces gold at 5.72 g/t uncapped) and 115,000 ounces of inferred gold (127,000 ounces gold at 2.83 g/t uncapped).

Also as of April 2011, the company said drilling below the 450 West Zone outlined 130,000 ounces of gold as measured and indicated underground resources at an average grade of 6.46 g/t gold and 905,000 ounces gold as inferred underground resources at an average grade of 7.18 g/t gold.

The current resource, which does not include any drilling post 2009, does not contain the 100 gold-bearing intercepts from the 850 West Zone drilling or high-grade results reported from the Rebecca Collins (RC) Soccer Field trench in 2011.

Drilling this year is currently testing the northern limits of the 450 West Zone, where a stacked series of quartz-tourmaline veins has been intersected north of the estimated open pit resource.

In February, the company said hole ER11-287 from the project returned 13.5 metres of 6.96 g/t gold, including 1.50metres of a whopping 60.49 g/t gold.

Investing in Junior Gold Explorers

Campbell says that for those investing in the junior gold space, they should base their decisions on the quality of the asset as opposed to a suspicion that the company will be acquired.

"Investors should do their due diligence, as you never know what potential acquirers are looking for.

"You need to invest in a high quality asset."

Despite valuations being at an all time low for juniors, and many of them cash strapped, Campbell advises that as long as they execute their plans well and on target, their share prices "ought to eventually reflect this."

The bottom line - there are many junior gold explorers out there that are ripe for picking, providing a “land of opportunity for big producers”, says Bouchard.

Results were received from Goldfields of South Africa for BIOX process amenability, and from Albion Process Limited for the XSTRATA Albion process amenability.

The BIOX process, as an alternative to pressure oxidation, uses bacteria to catalyze the oxidation of pyrite and arsenopyrite prior to gold recovery by carbon-in-leach cyanidation.

The XSTRATA Albion process uses fine grinding and neutral oxidation of pyrite and arsenopyrite prior to gold recovery by carbon-in-leach cyanidation.

The overall gold recovery achieved in BIOX testing of concentrate from the Duparquet project ranged from 94.3 to 94.7 percent, while the overall gold recovery achieved from the same concentrate with the Albion process was 93.8 percent.

Clifton said these numbers compare "well" to the overall average of 93 percent gold recovery achieved by SGS Lakefield tests, announced in March.

In each case, gold was recovered by cyanidation in leach, after the BIOX, Albion or pressure oxidation pre-treatment.

"These results on BIOX and Albion testing confirm that the Duparquet resource is not difficult to treat from a metallurgical standpoint," said president and CEO of Clifton, Michel Bouchard.

"Two conventional processes (BIOX and Pressure Oxidation) and one emerging process (Albion) have all proven capable of achieving high gold recoveries from Duparquet concentrates.

"The choice between processes may now be considered based on relative economics."

The BIOX process was developed in South Africa and first applied at the Fairview mine. Currently, four sites around the world are using the process, including the Ashanti Goldfields plant in Ghana, which treates 960 tonnes per day of concentrate prior to cyanidation for gold recovery.

The Albion process was developed in Australia and has been applied in the zinc industry for leaching zinc concentrates. It has been licensed for gold applications in the Dominican Republic and Romania.

Earlier this month, Clifton Star said that metallurgical test results also showed that high gold recoveries from historical tailings at its Duparquet project in Quebec are possible.

These high recoveries were seen using a combination of conventional flotation, pressure oxidation and cyanidation, the company said.

The overall gold recovery from the tailings sample obtained from the historical Beattie tailings was 83.5 percent.

These metallurgical tests are part of a larger program that previously led to average gold recoveries of 93 percent from core samples of the different gold zones of the Duparquet project, as announced in March.

A preliminary economic assessment for the Duparquet project will follow the upcoming NI 43-101 resource assessment report from Innovexplo, now expected in May of 2012.

The new NI 43-101 compliant resource report for the entire project will move the Beattie and Donchester deposit estimates under the same criteria and allow for one data bank for the whole project.

The Beattie area of the Duparquet project is currently estimated to contain 1.72 million inferred gold ounces at a cut-off of 0.67 g/t gold, all in pit resources, as opposed to the current cut-off of 1.5 g/t gold used in the NI 43-101 report for Donchester.

Shares of the company advanced 0.7 percent Monday morning.

These high recoveries are seen using a combination of conventional flotation, pressure oxidation and cyanidation, the company said.

The overall gold recovery from the tailings sample obtained from the historical Beattie tailings was 83.5 percent.

The tests are part of a larger metallurgical test program that previously led to average gold recoveries of 93 percent from core samples of the different gold zones of the Duparquet project, as announced in March.

The tailings tests announced today from the Beattie deposit at the project were from a sample that graded 1.18 grams per tonne (g/t) gold, which was recovered from Clifton's Duparquet historical tailings impoundments that have been in place since the cessation of mining and processing at the complex in the 1950s.

Approximately nine million tonnes of tailings were generated from historical flotation processing of Beattie ores. Gold was recovered from the flotation concentrate after roasting and cyanidation, the company said.

The results confirm that the historical Beattie flotation tailings may be treated by a conventional flow sheet of flotation and pressure oxidation, Clifton said, with cyanidation of both the pressure oxidation residue and the flotation tailings.

"The excellent gold recovery results obtained on the sample from the Beattie tailings imply that we will also evaluate the reprocessing of the Beattie gold bearing tailings in a Preliminary Economic Assessment Study (PEA)," said president and CEO, Michel Bouchard.

"This PEA will follow the upcoming NI 43-101 resource assessment report from Innovexplo, now expected in May of 2012, which will include an estimate of the Beattie tailings gold resource."

Clifton is continuing with the testing of the Duparquet gold zones at the SGS Lakefield Research facilities in order to generate sufficient operating parameters to be used in the upcoming PEA report.

The company is also undertaking an additional metallurgical test program to determine the most economical process to treat the mineralization, sending samples of bulk concentrate to Goldfields of South Africa. The program will test the BIOX technology as an alternative to pressure oxidation.

The BIOX process uses bacteria to catalyze the oxidation of pyrite and arsenopyrite prior to gold recovery by carbon-in-leach cyanidation. In addition, samples of bulk concentrate have been sent to Australia for testing of XSTRATA Technologies' Albion process, which uses fine grinding and neutral oxidation of pyrite and arsenopyrite prior to gold recovery by carbon-in-leach cyanidation.

Both series of tests are now at the final stage of completion, the company said, and Clifton expects to have the results in May.

The new NI 43-101 compliant resource report for the entire Duparquet project will move the Beattie and Donchester estimates under the same criteria and allow for one data bank for the whole deposit.

The Beattie area of the Duparquet project is currently estimated to contain 1.72 million inferred gold ounces at a cut-off of 0.67 g/t gold, all in pit resources, as opposed to the current cut-off of 1.5 g/t gold used in the NI 43-101 report for Donchester.

Drilling was focused on the North Zone of the Beattie and Donchester properties at the project, targeting deeper levels. Clifton currently has two drills working on the asset.

From January to mid-March this year, diamond drilling by Clifton yielded seven completed holes for 4,905 metres - all targeting the North Zone - with six drill hole extensions and one new hole.

Results reported Wednesday are from the first five holes. Highlights included 18 metres of 3.16 grams per tonne (g/t) gold in hole BD10-160 ext, and 7 metres of 2.37 g/t gold in hole BD10-172 ext.

In addition, hole BD12-01 returned 8.3 metres  of 2.69 g/t gold, while hole DON10-44 ext, on the Donchester property, hit 11.1 metres of 1.55 g/t gold and hole DON10-52 ext intersected 12.5 metres of 1.35 g/t gold.

Clifton Star said the North Zone on Beattie and Donchester continues to be the focus of the drilling program for the first part of this year.

The company said the area continues to show "excellent continuity, with significant gold mineralization, at depth". The mineralized envelope of the North Zone can be up to 80 metres wide, and has been traced along strike for 2.6 kilometres thus far.

Recent work has defined several higher-grade lenses within the North Zone, the company said, with future drilling to test these lenses at depth.

"The results of the 2012 drill program continue to be very encouraging, as can be seen from the assay data that is listed," Clifton Star said in a statement.

All 2011 and prior drill hole information, as well as the available results of the 2012 drill hole program, will be included into an NI 43-101 compliant resource report on the Duparquet project, which includes the Beattie, Donchester, Dumico and Central Duparquet properties, as well as the Beattie tailings.

The report is being prepared by mining consulting firm InnovExplo, and is expected for release in late April. This will form the basis of a preliminary economic assessment at the project.

Until the end of the year, the main focus of drilling at Duparquet will be the continued exploration of the various zones at the Beattie, Donchester, Dumico and Central Duparquet properties. Work will be done to better define the limits of the known mineralization between 400 to 600 metres below surface, as well as to identify the limits of higher grade sections within the known zones.

After almost eight months of hiatus, Clifton Star Resources started fresh in March, as the company resumed trading earlier this month with president and CEO, Michel F. Bouchard at the helm, who took over from former chief executive Harry Miller in November.

In February, the company filed an updated NI 43-101 resource report for its Donchester property at Duparquet, which is located along the prolific Destor-Porcupine fault in the Abitibi region of Quebec.

A previous technical report on Donchester from June 2011 was deemed non-compliant with the requirements of NI 43-101 by the British Columbia Securities Commission (BCSC), prompting a cease trade order on Clifton Star's stock.

But as a result of the new estimate, the cease trade order was revoked on Monday, March 5, with the stock now trading after the TSX Venture Exchange gave its approval.

The latest NI 43-101 compliant report for Donchester gave an inferred resource of 11.01 million tonnes with an average grade of 3.06 grams of gold per tonne for 1.05 million contained gold ounces, at a cut-off grade of 1.5 grams of gold per tonne, and using a top-cut of 8.0 grams per tonne.

CEO Bouchard says the new NI 43-101 compliant resource report for the entire Duparquet project will move the Beattie and Donchester estimates under the same criteria and allow for one data bank for the whole deposit.

The Beattie area of the Duparquet project is currently estimated to contain 1.72 million inferred gold ounces at a cut-off of 0.67 g/t gold, all in pit resources, as opposed to the current cut-off of 1.5 g/t gold used in the NI 43-101 report for Donchester.

Clifton also unveiled "excellent" metallurgical results from the project last month, with the overall average gold recovery from six metallurgical samples at 93 percent. Six metallurgical samples, with head grades ranging from 1.25 grams per tonne (g/t) gold to 3.58 g/t gold, were provided to SGS Lakefield Research for gold recovery testing.

In the first half of 2012, the company is focused on expanding resources and identifying new targets at Duparquet, and plans to spend roughly $2 million on exploration, with most of it allocated toward 15,000 metres of drilling, using two rigs.

In February, the company filed an updated NI 43-101 resource report for its Donchester property, part of its Duparquet project, which is located along the prolific Destor-Porcupine fault in the Abitibi region of Quebec.

A previous technical report on Donchester from June 2011 was deemed non-compliant with the requirements of NI 43-101 by the British Columbia Securities Commission (BCSC), prompting a cease trade order on Clifton Star's stock.

But as a result of the new estimate, the cease trade order was revoked on Monday, March 5, with the stock now trading after the TSX Venture Exchange gave its approval. The company also has a revamped website to ensure compliance.

The latest NI 43-101 compliant report for Donchester gave an inferred resource of 11.01 million tonnes with an average grade of 3.06 grams of gold per tonne for 1.05 million contained gold ounces, at a cut-off grade of 1.5 grams of gold per tonne, and using a top-cut of 8.0 grams per tonne.

Aside from the new estimate, the company also issued two other news releases that Bouchard says ensures the Duparquet project's potential. The recent spurt of news is also part of the company's efforts to keep shareholders abreast of its situation, and to recognize how far Clifton Star has progressed in the past year.

Earlier this month, the company unveiled 2011 drill results from its Duparquet project, which were "very well received" at the PDAC mining event, says Bouchard.

Bouchard says the release of the results prior to the resumption of trade was agreed by the BCSC.

Indeed, significant results from the North and South zones on the Beattie and Donchester properties in 2011 included hole BD10-277 on the North zone, which intersected 58.3 metres of 2.06 grams per tonne (g/t) gold, and hole BD11-334M on the South zone, which returned 41.0 metres of 2.08 g/t gold.

On the RW/RS zone, which is located between the North and South zones on the Beattie and Donchester properties, hole BD11-335 hit 16.0 metres of 9.02 g/t gold near surface. The hole was drilled to test stacked horizontal structures, the company said.

Since re-assuming control of Duparquet last June from Osisko (TSE:OSK), Clifton Star drilled a total of 85 holes last year - totaling 26,754 metres - focused on the Beattie, Donchester, and Central Duparquet zones of the project.

Bouchard says the 2011 data will be included into a new NI 43-101 compliant resource report for the entire Duparquet project, which will move the Beattie and Donchester estimates under the same criteria and allow for one data bank for the whole deposit.

The Beattie area of the Duparquet project is currently estimated to contain 1.72 million inferred gold ounces at a cut-off of 0.67 g/t gold, all in pit resources, as opposed to the current cut-off of 1.5 g/t gold used in the NI 43-101 report for Donchester.

The new NI-43-101 report will be an "eye opener", says Clifton's CEO. It will be the first time that the combined Beattie, Donchester and Central Duparquet will be evaluated under the same cut-offs and criteria. It is on track for completion in late April, and is being prepared by InnovExplo, a mining consultation firm in Val-d'Or, Quebec. A preliminary economic assessment is expected to follow by later this year or in early 2013.

In addition to the 2011 drill results, Clifton also unveiled "excellent" metallurgical results from the project last week, fixing two prior problems for investors, Bouchard says.

"There was a previous perception that there was refractory ore at the project and that we couldn't handle it, as the last time ore was processed from the area was in the 50s generating only 81% to 82% recovery overall."

Bouchard adds, however, that more than 50 years has passed, with the general metallurgy and recovery process improving significantly.

Proving his point, the company released recent test results from SGS Lakefield Research, which showed that high gold recoveries from mineralization at the project are possible, using a combination of conventional flotation, pressure oxidation and cyanidation.

The overall average gold recovery from six metallurgical samples from the Duparquet project gold zones was 93 percent - which is "up there with the best", says Bouchard.

Six metallurgical samples, with head grades ranging from 1.25 grams per tonne (g/t) gold to 3.58 g/t gold, were provided to SGS Lakefield Research for gold recovery testing.

"Though the results are preliminary, they show the potential of the project. One cloud hanging over Duparquet has been lifted."

Another cloud was also lifted, as arsenic levels were low in all six samples, meaning environmental control of arsenic will be "straightforward" at these levels.

Prior to the metallurgy results, the arsenic at the project was perceived as a problem environmentally, "but the metallurgical process tested also fixated the arsenic, showing no leaching and indicating it will not pollute", says Bouchard.

In the first half of 2012, the company is focused on expanding resources and identifying new targets at Duparquet, and plans to spend roughly $2 million on exploration, with most of it allocated toward 15,000 metres of drilling, using two rigs.

The main goal of this program will be to test the extension of the mineralized gold-bearing zones to depth on the Beattie, Donchester and Central Duparquet properties.

After Clifton Star receives the new, unified technical report for the entire project, Bouchard says it will probably accelerate drilling by "a lot more". Indeed, with more than $14 million of cash on hand, and no debt, the company is certainly in a position to do so.

Clifton has also brought new management on board, first with Bouchard, who has more than 30 years of experience in exploration and mine development in Quebec, as well as M. Louis C. Martin, the new VP of exploration, and Louis Dufour, the new CFO.

"We are putting exploration and development on the fast track, and we have the people and the money to do it. We are solving our previous problems one by one," Bouchard says.

"There are many investors that have been very patient. We anticipate the market will recognize the long-term potential of Clifton Star, with shares expected to reflect the potential of the projects."

If Clifton is compared to any other junior company with the same inventory, "it is clearly undervalued", Bouchard concludes.

"With the CTO now revoked, and the metallurgy and environmental problems under control, this is expected to change."

Clifton Star, with just 35 million shares outstanding, counts San Francisco-based Passport Capital and New York-based Libra as significant shareholders. Shares of the company were changing hands Friday afternoon at around $2.09.

In 2011, Clifton Star drilled 85 holes, totaling 26,754 metres. The drill program focused on the Beattie, Donchester, and Central Duparquet properties.

The project consists of the well-defined North and South zones, as well as several smaller east-west trending zones including the West zone, the RW zone, and the RS zone. Most holes were focused on deepening previous 2010 holes in order to reach the North zone at depth.

At the North zone, gold mineralization has been traced along strike in an east-west direction for 2.6 kilometres.

Significant results from the North zone included hole BD10-277, which intersected 2.06 grams per tonne (g/t) gold over 58.3 metres; hole BD10-270, which hit 2.25 g/t gold over 36.0 metres; and hole D11-149, which intersected 32.3 metres grading 1.66 g/t gold.

Gold mineralization was also intersected from shallow infill drilling in the West zone, and along the RW and RS zones.

Notable results included hole BD11-335, which intersected 16.0 metres grading 9.02 g/t gold on the RW/RS zone; and hole BD11-333 on the West zone, which returned 1.69 g/t gold over 78.0 metres, including 31.0 metres at 2.55 g/t gold.

Meanwhile, on the South zone, hole BD11-334 hit 41.0 metres grading 2.08 g/t gold, and on the Main zone, hole CD11-01 intersected 1.79 g/t gold over 37.0 metres, and hole CD11-03 returned 4.86 g/t gold over 19.0 metres.

Clifton Star said it will incorporate the 2011 data into a comprehensive NI 43-101 compliant resource estimate for the Duparquet project. The report, which is expected for completion in April 2012, is currently being prepared by InnovExplo, a mining consultation firm in Val-d'Or, Quebec.

The report will form the basis of a preliminary economic assessment.

Earlier this week, Clifton Star filed an updated NI 43-101 resource report for its Donchester property. A previous technical report on Donchester from June 2011 was deemed non-compliant with the requirements of NI 43-101 by the British Columbia Securities Commission (BCSC), prompting a cease trade order on Clifton Star's stock.

The latest report gave an inferred resource of 11.01 million tonnes with an average grade of 3.06 grams of gold per tonne for 1.05 million contained gold ounces, at a cut-off grade of 1.5 grams of gold per tonne, and using a top-cut of 8.0 grams per tonne.

The company also said Thursday it currently has two active drill rigs at the Beattie and Donchester properties, completing a 20-hole program.

The drilling will primarily focus on the continued surface exploration of the various zones at the Beattie, Donchester, Dumico, and Central Duparquet properties, in order to better define the limits of the known mineralization between 400 and 600 metres below surface, as well as to identify the limits of higher grade sections within the known zones.

Clifton Star Resources is a Canadian junior mining exploration company with a focus on properties that have had historic production of gold, silver, copper and nickel.

Its portfolio consists of seven properties, six of them near the Porcupine-Destor Fault in Quebec and one on the Manitoba/Ontario border.

Earlier this week, Clifton Star filed an updated NI 43-101 report for its Donchester property, part of the company's Duparquet project in Quebec.

A previous technical report on Donchester from June 2011 was deemed non-compliant with the requirements of NI 43-101 by the British Columbia Securities Commission (BCSC), prompting a cease trade order on Clifton Star's stock.

The latest report gave an inferred resource of 11.01 million tonnes with an average grade of 3.06 grams of gold per tonne for 1.05 million contained gold ounces, at a cut-off grade of 1.5 grams of gold per tonne, and using a top-cut of 8.0 grams per tonne.

In a research report, LOM analyst Michael Fowler said the latest resource estimate was "...within our expectations and should be positive for the stock price once the initial swoon has taken place when the cease trade order is lifted."

"The announcement shows that the suspension of the stock was not due to an impairment of Clifton Star's asset base, but more to do with disclosure issues," LOM's Fowler said.

LOM's Fowler remarked that the latest report used a higher than usual cut-off grade "probably to satisfy the BCSC".

"It is very rare to see such high bottom cut-offs used for a potentially partially open-pit scenario and a top cut of just 8 grams per tonne is the lowest we have ever seen."

The analyst pointed out that on the adjacent Beattie deposit at the project, a company contracted to carry out a resource estimate used a cut-off grade of 0.67 grams per tonne "on what is the extentsion of the same deposit".

"The effect of the bottom cut-off grade used [in Clifton Star's report] has a severe effect on the resource estimate," Fowler said.

"In our opinion, the company has the potential of proving up a resource of plus 5 million ounces at a 0.5 grams per tonne cut-off grade."

The company said that recent tests from SGS Lakefield Research showed high gold recoveries from mineralization at the project are possible, using a combination of conventional flotation, pressure oxidation and cyanidation.

A significant amount of gold is locked in refractory sulfide minerals, therefore refractory sulfide ores are generally treated by pre-oxidation prior to recovery of gold by cyanidation.

The overall average gold recovery from six metallurgical samples from the Duparquet project gold zones was 93 percent. Six metallurgical samples, with head grades ranging from 1.25 grams per tonne (g/t) gold to 3.58 g/t gold, were provided to SGS Lakefield Research for gold recovery testing.

"It has been commonly considered that the resource at Duparquet may be difficult to treat from a metallurgical stand point, "said president and CEO Michel Bouchard. "Considering the tests results, the uncertainty is largely lifted."

The company said the average sulfide oxidation for the best test for each of the six samples was 98.8 percent.

The core samples were taken from the Beattie, the Donchester North, the Donchester South, and the Central Duparquet Main Zone. A sample of the historical tailings from Beattie was also tested, Clifton Star added.

Arsenic levels were low in all six samples, meaning environmental control of arsenic will be "straightforward" at these levels.

Despite the positive results, in order to determine the most "economical process to treat the mineralization", samples of bulk concentrate were provided to Goldfields of South Africa for testing using the BIOX technology as an alternative to pressure oxidation.

The BIOX process uses bacteria to catalyze the oxidation of pyrite and arsenopyrite prior to gold recovery by carbon-in-leach cyanidation.

Samples of bulk concentrate were also sent to Australia for testing the Albion process, which uses fine grinding and neutral oxidation of pyrite and arsenopyrite prior to gold recovery by carbon-in-leach cyanidation.

Both series of tests have started, with Clifton expecting to have preliminary results in June of this year.

On Thursday, Clifton Star announced the results of its 2011 drill program at its Duparquet project, which is located along the prolific Destor-Porcupine fault in the Abitibi region of Quebec.

In 2011, Clifton Star drilled 85 holes, totaling 26,754 metres. The drill program focused on the Beattie, Donchester, and Central Duparquet properties.

Significant results from the North zone included hole BD10-277, which intersected 2.06 grams per tonne (g/t) gold over 58.3 metres; hole BD10-270, which hit 2.25 g/t gold over 36.0 metres; and hole D11-149, which intersected 32.3 metres grading 1.66 g/t gold.

At the North zone, gold mineralization has been traced along strike in an east-west direction for 2.6 kilometres.

The company said it will incorporate the 2011 data into a comprehensive NI 43-101 compliant resource estimate for the Duparquet project. The report, which is expected for completion in April 2012, is currently being prepared by InnovExplo, a mining consultation firm in Val-d'Or, Quebec.

The report will form the basis of a preliminary economic assessment.

Earlier this week, the company filed an updated NI 43-101 resource report for its Donchester property. A previous technical report on Donchester from June 2011 was deemed non-compliant with the requirements of NI 43-101 by the British Columbia Securities Commission (BCSC), prompting a cease trade order on Clifton Star's stock.

The latest report gave an inferred resource of 11.01 million tonnes with an average grade of 3.06 grams of gold per tonne for 1.05 million contained gold ounces, at a cut-off grade of 1.5 grams of gold per tonne, and using a top-cut of 8.0 grams per tonne.

The company also said Thursday it currently has two active drill rigs at the Beattie and Donchester properties, completing a 20-hole program.

The drilling will primarily focus on the continued surface exploration of the various zones at the Beattie, Donchester, Dumico, and Central Duparquet properties, in order to better define the limits of the known mineralization between 400 and 600 metres below surface, as well as to identify the limits of higher grade sections within the known zones.

The report, prepared by James S. Steel of Mining Insights, comes after a previous technical report on Donchester from June 2011 was deemed by the British Columbia Securities Commission (BCSC) to be non-compliant with the requirements of NI 43-101, prompting a cease trade order.

The company said Tuesday it has filed an application with the executive director of the BCSC to have the cease trade order revoked and expects a response in due course.

The current NI 43-101 compliant inferred resource on the Donchester portion of the Duparquet project consists of 11.01 million tonnes with an average grade of 3.06 grams of gold per tonne for 1.05 million contained gold ounces, at a cut-off grade of 1.5 grams of gold per tonne, and using a topcut of 8.0 grams.

Clifton Star said the report recommends "extensive further work" on the property including in‐fill drilling and exploration drilling, both on sections with existing drill holes and between sections. Trenching is also recommended, it added.

Meanwhile, the Beattie area of the Duparquet project is currently estimated to contain 1.72 million inferred gold ounces, while the Duquesne area is projected to hold 0.2 million indicated ounces, and 0.28 million inferred ounces.

In October 2011, the company filed a "Material Change Report" as well as two other NI 43-101 reports dealing with the Beattie portion of the Duparquet project and the Duquesne property.

Clifton said it retained the services of InnovExplo, a geological and mining consulting firm, to prepare an NI 43-101 technical report on the Beattie, Donchester, Dumico, Central Duparquet, and the Beattie Tailings portions of the Duparquet project, and expects to receive this report in April this year.

Since re-assuming control of the Duparquet project last June from Osisko (TSE:OSK), the the company has been actively drilling at the property, with 85 holes for 26,754 metres completed in 2011, as well as metallurgical testing.

Most of these holes were drilled on the Beattie and Donchester properties to increase the continuity of the zones and to extend previous holes that had ended in mineralization.

Results from the on-going drilling campaign should be available shortly, Clifton said, with metallurgical testing results to be released in due course.

These results, as well as all previous drilling assays, are being used to prepare the NI 43-101 technical report for the project due in April, which will form the basis of a preliminary economic assessment.

Clifton said last month that it will continue exploration in 2012 with the aim of expanding resources and identifying new targets. In the first half of 2012, the company plans to spend roughly $2 million on exploration, with most allocated for 15,000 metres of drilling.

The primary focus of this exploration program will be to test the extension of the mineralized zones to depth on the properties.

Clifton, which has around $14 million in cash and term deposits, also said Tuesday it has hired a new CEO, Michel F. Bouchard.

Bouchard has more than 30 years of experience in exploration and mine development in Quebec.

In addition, M. Louis C. Martin has been appointed VP of exploration.

A NI 43-101 Compliant Resource Estimate prepared by SGS of Canada, for Beattie, confirms an in situ Inferred Resource of 56.2 million tonnes at 1.53 g/t Au, containing 2.77 million ounces of gold at a cut off grade of 0.67 g/t. This was based on a total of 127,540 metres of drilling. Geological interpretation of the deposit identified five main structurally-controlled mineralized domains, and a lower grade envelope hosted by syenite porphyry.

Scoping studies produced an in-pit inferred resource of 32.0 million tonnes at 1.67 g/t Au to extract 1.72 million ounces of gold, at a cut off grade of 0.67 g/t. The selected base case operating parameters were modeled around a C$1,100 gold price, and utilized total operating costs of C$34.85 per tonne. Other assumptions included an 85% recovery of gold in oxidized material, and a pit wall slope angle of 50 degrees.

The conceptual open pit to extract 1.72 million ounces has approximate maximum dimensions of 1,600 metres in length, 850 metres in maximum width, and a maximum vertical depth of 400 metres. Selecting C$1,500 per ounce gold increases the in-pit Inferred Resource to 2.50 million ounces at a grade of 1.39 g/t gold.

The Beattie Mine was an underground mine with historic production of 1.265 million ounces of gold at a grade of 0.115 oz/t, with minor silver. The main ore body extended over a length of 352 metres and was mined down to a depth of up to 600 metres. The Beattie Mine is part of a 6.5 kilometre strike line that carries 3 major mineralized zones running from east to west.   

The current resource estimate at Beattie does not include the eastern extension of the conceptual Beattie open pit, as 2010 drilling was insufficient to calculate a resource on that extension. Drilling did confirm that the mineralized system beneath Beattie remains open at depth.

This brings the total number of Measured and Indicated Resource ounces at Donchester, Central Duparquet, Beattie Tailings, Duquesne and Beattie to 1,769,764 ounces and Inferred Resources to 3,447,919 ounces, for a total of 5,217,683 ounces.  This size of the total resource will increase when the new NI 43-101 Report for Duquesne will be issued.  

The Duquesne Mine had historical production of 60,000 ounces of gold at an average grade of 10.5-11.5 g/t.  Clifton Star completed 55 drill holes over a 250 meter strike length and depth of 932 meters, outlining resources on westerly extensions and at depth, which identified 4 parallel high grade gold veins, and wider mineralized zones, with a potential strike line extending for 3,000 metres. Duquesne currently hosts a Measured and Indicated Resource of 1,859,200 tonnes at 3.33 g/t Au for 199,161 ounces, and an Inferred resource of 1,563,100 tonnes at 5.58 g/t Au for 280,642 ounces, for a total of 476,804 ounces at a cut-off of 3.00 g/t.

In 2010, Osisko completed 69 holes comprised of 20,300 metres over this zone, with highlights that included DQ 10-52, which intersected 19.5 metres at 4.22 g/t Au from 27.0 to 46.5 metres, and included 1.5 metres at 21.40 g/t Au; DQ 10-61, which intersected 15.2 metres of 2.6 g/t  from 346.5 to 361.7 metres, and included 1.7 metres at 15.20 g/t Au; and DQ 10-76, which intersected 11 metres at 5.81 g/t Au from 96.0 to 107.10 metres, and included 2 metres at 17.7 g/t Au.     

A high-resolution airborne geophysical survey was completed and included total field magnetics, time-domain electromagnetics and radar altimetry for digital elevation modeling. Survey lines covered approximately 1030 line kilometres and included Beattie, Donchester and Duquesne properties as well as intervening ground and will be done in collaboration with two other public companies working in the area. This survey should allow for better interpretation of trends of structurally-controlled gold mineralization on the properties.

Osisko completed 123,000 metres of drilling, and expended approximately $15 million on the Duparquet Gold Project in 2010, before it terminated its agreement and allowed the option terms to formally lapse with Clifton Star. This allows the Company to retain Duquesne, along with the advanced exploration effort at no cost, as it seeks a new CEO with mining experience, along with additions to its geological team.

Clifton Star has also retained David Dreisinger, who is a noted metallurgist to review metallurgy at the project and develop process options for the Beattie tailings, which host a Measured and Indicated Resource of 4,757,280 tonnes at 0.76 g/t Au, for 114,700 ounces and an Inferred Resource of 2,913,600 tonnes at 0.72 g/t Au for 67,400 ounces, which carries near term cash flow potential, and may become a stepping stone for production increases from a series of open pits.

Osisko had the right to acquire a 50% stake in the Duparquet project, located in the Abitibi region, in return for $70 million in exploration expenditures from 2010 to 2013, as well as for extending loans to Clifton to fund option payments on the property.

In a statment today, Clifton said that Osisko had presented a budget for the current year that did not meet the minimum spending requirements under the joint venture deal.

According to Clifton, it then asked Osisko for clarification of its intentions, as no drilling been carried out on the property since last summer. Clifton decided to halt the trading of its shares yesterday to address rumours that Osisko had chosen to withdraw from the project, and has since received confirmation, resuming the trade of its stock.

Under the terms of joint venture option agreement, a 30-day notice is required prior to the termination becoming effective.

President and CEO of Clifton, Harry Miller, told Proactiveinvestors that the company views this development as positive, as it gives the Vancouver-based junior control of the operations once more, as well as the ability to drill on property that hasn't been touched in a year.

He said four drills are currently standing by, until technical details with Osisko are sorted, with independent consultants currently evaluating a plan of action for the plus 5.3 million ounce project going forward. More information on the proposals will be released next week, added Miller.

The Duparquet gold project includes the Donchester, Beattie, Central Duparquet, and Duquesne tailings deposits. Just earlier this week, an updated measured and indicated resource was released for Donchester, totaling 1.33 million gold ounces, as well as an additional 302,000 ounces of inferred gold. Beattie's estimate was also revised, and is now projected to host an in-situ inferred resource of 2.77 million ounces.

According to Miller, the estimated ounces on the entire project values Clifton at around $30 per ounce, a severe discount to its Quebec peers, he said, making the company signficantly undervalued.

Miller re-iterated the company's confidence in the property, citing its "ideal location", surrounding infrastructure and historical production. Future potential partners are already being scouted, with a new experienced team set to takeover the operation.

"The company wishes to thank Osisko for the professional manner in which it carried out its obligations under the joint venture agreement and for advancing the project. The company looks forward to the opportunity of improving the projects viability," Clifton said in the statement.

Clifton, with near $16 million in its treasury, plans on drilling through the summer, fall and winter of this year for additional targets, with plans to engage in a pre-feasibility study by next spring. Production is expected in 2015.

Under the terms of the joint venture, if Osisko would decide to withdraw from the partnership, Clifton could decide whether to convert the entire amont of the loan made to the company into common shares of Clifton, at a conversion price of $3.12 per share, plus interest.

Separately, Clifton said that the company is actively looking for a replacement for Miller, who will not be extending his contract at the end of the year. Clifton shares lost 22 cents or 9.28% to $2.15 on Friday afternoon.

The revised NI 43-101 compliant report stated 22.5 million tonnes of measured and indicated resources at 1.84 grams per tonne (g/t), or 1.33 million ounces of gold. Also reported was 4.7 million tonnes of inferred resources at 2.02 g/t, or 302,000 ounces of gold.

The report was based on 218 drill holes at a cut-off grade of 0.5 g/t, the company said.

Osisko has the right to acquire a 50% interest in the Duparquet project by spending a total of $70 million in exploration expenditures from 2010 to 2013, as well as by extending loans to Clifton to fund option payments on the property.

The Donchester property's main ore body, which measures down to a depth of 381 metres of a one kilometre strike length, lies along the same syenite poryphyry as the Beattie deposit. The 823.5 acre site adjoins the Beattie property to the east.

The Duparquet project also includes the Beattie, Central Duparquet, and Duquesne tailings deposits, which were not included in the Donchester resource reported today.

However, the companies also announced Monday a separate 2.77 million ounce in-situ inferred gold resource at the Beattie deposit.

The Vancouver, B.C.-based company said it is looking forward to its summer and winter drilling campaign at Donchester, through which it hopes to increase both the open-pit and underground resource potential, and place more ounces in the measured and indicated category.

Osisko has the right to acquire a 50% interest in the Duparquet project by spending a total of $70 million in exploration expenditures from 2010 to 2013, as well as by extending loans to Clifton to fund option payments on the property.

According to the NI 43-101 compliant report, the in-situ inferred resource of the target is 2.77 million ounces of gold, or 56.2 million tonnes grading 1.53 g/t gold, using a cut-off grade of 0.67 g/t.

The study also estimated a 1.72 million ounce in-pit Inferred resource within a Whittle-optimized pit shell, using a base case gold price of C$1,100 per ounce, the company said.

Using a price of C$1,500 per ounce of gold, the in-pit inferred resource increases to 2.50 million ounces at an average grade of 1.39 g/t gold.

The in-pit estimates assumed a base operating cost of C$34.85 per tonne, as well as an 85% gold recovery rate.

The resource report used for Beattie was based on a total of 127,540 metres of driling, completed first by Clifton Star, and in 2011 by Osisko.

The Duparquet project also includes the Donchester, Central Duparquet, and Duquesne tailings deposits, which were not included in the Beattie resource reported today. The entire property, which sits along the Porcupine-Destor Fault Zone covers around 8 kilometres of strike length, with three mines that have produced 1.50 million ounces of gold.

The Beattie is part of the larger Beattie-Donchester mineralized corridor, which was the focus of the 2010 drilling program. The company said that no estimate was provided for the eastern extension of the corridor, also known as the Donchester portion, located to the east of Beattie.

In early November, Clifton and Osisko announced results from its Beattie property at the site, with significant intersections including 49.3 metres averaging 2.05g/t Au, 70.5 metres averaging 1.94g/t Au and 96 metres averaging 1.21 g/t Au. The mineralized system is still open at depth, Osisko and Clifton said.

Last Thursday, Desjardins securities analyst Brian Christie told the Globe and Mail that gold explorers Clifton Star Resources (CVE:CFO) and Orezone Gold (TSE:ORE) could potentially be the next two targets.

Clifton Star has a joint venture with Osisko Mining (TSE:OSK) on the Duparquet project in northwestern Quebec. Currently, the Duparquet project, which sits along the Porcupine-Destor Fault Zone, hosts around 2.6 million ounces of gold resources, and covers an 8 km of strike length with three mines that have produced roughly 1.50 million ounces of gold.

Positive exploratory drilling results from the property, including 3.4 meters averaging 162.0 g/t gold, have led some analysts to upgrade their ratings for Clifton. Should it continue drilling similar results, Christie said that he sees Osisko making a takeover offer for Clifton, which he currently rates as a "buy" with a $9.50 price target - more than double the company's current trading price.

Indeed, things could heat up after Clifton releases its updated resource estimate for the entire Duparquet project - anticipated in the first quarter of this year.

While focused on another region entirely from Clifton, Orezone too looks to be a promising takeover target, with Christie assigning the company a price target of $5.50.

Orezone is drilling at its Bombore project, the largest undeveloped gold deposit in Burkina Faso where a resource update is expected in October. The company has suggested that the indicated resource from the property could increase to 3.4 million ounces from 1.5 million ounces.

Christie was cited in the Globe as saying: "Should the resource approach the company's expectations, we believe that it could become a prime acquisition candidate, especially for a company already active in West Africa."

Collectively, Bomboré, along with Orezone's two other gold projects in Burkina Faso, Sega and Bondi, have 2.3 millon ounces of gold resources in the measured and indicated category and 2.2 million ounces in the inferred category.

Highlights from the results of the 49 new drill holes include 60.0 meters averaging 2.18 g/t Au in hole DON10-74; and 46.5 meters averaging 1.19 g/t in hole DON10-83.

Clifton and Osisko said the new drilling also intersected significant higher grade intercepts, including 3.4 meters averaging 162.0 g/t Au in hole DON10-107; 7.5 meters averaging 9.57 g/t Au in hole DON10-116; and 10.5 meters averaging 7.40 g/t Au in hole DON10-69

The high grade intersection in hole DON10-107 is associated with a "syenite-hosted quartz vein" containing visible gold, said the two companies.

In 2010, drilling at the Duparquet project focused on three properties: Beattie, Donchester/Central Duparquet and Duquesne, for an overall campaign of 122,800 meters.

Today's results hail from phase three of the program, which consisted of 32,700 metres on the Donchester property and Central Duparquet, for a total of 96 holes. Final results are still pending, the companies said.

Osisko has the right to acquire a 50% interest in the Duparquet project, located in the Abitibi region. This can be achieved by spending a total of $70 million in exploration expenditures from 2010 to 2013, as well as by extending loans to Clifton to fund option payments on the property.

Osisko rallied more than 3% on Wednesday to trade at $12.71 just before noon, while Clifton Star rose 0.5% to $4.06.

Dr. Dreisinger is currently the Professor and Chairholder, Industrial Research Chair in hydrometallurgy at the University of British Columbia, where he leads a team of staff and students in research and development related to base and precious metal recovery.

He has co-invented and developed a number of recovery processes including the Mt. Gordon Copper process, the Sepon Copper process, the Balco process (to be applied at Baja Mining's Bolco project in Baja), and others.

In his new role, Dr. Dreisinger will review available information on the processing of ore and tailing related to the Duparquet Gold project in southwestern Quebec, and then report his findings to the company's board of directors.

Once the review is completed, Dr. Dreisinger will work with the company's team to develop a targeted program for the extraction of gold at the Duparquet properties.

As part of his compensation for taking on the role, Clifton Star has given Dr. Dreisinger a 50,000 stock option at $5.00 for a period of three years.

The joint venture Duparquet project that was signed in December last year comprises the Central Duparquet, Duquesne, Beattie, Donchester and Dumico properties.

Aside from this project, Clifton also owns the Cat Lake property, which comprises nine mining leases totaling 238 hectares in the Lac Dubonnet Mining District northeast of Winnipeg, Manitoba.

The rating is based on Clifton Star and joint venture partner Osisko Mining's (TSX:OSK) 2010 drill program results from the Duparquet project in Quebec.

The results "enhance our confidence in the ability of the JV to expand/upgrade current gold resources to ~5.5 Moz. by the end of Q1 2011", Stonecap said.

In early November, Clifton and Osisko announced results from its Beattie property at the site, with significant intersections including 49.3 metres averaging 2.05g/t Au, 70.5 metres averaging 1.94g/t Au and 96 metres averaging 1.21 g/t Au.

Currently, the Duparquet project, which sits along the Porcupine-Destor Fault Zone, hosts ~2.6 Moz of gold resources, and covers ~8 km of strike length with three mines that have produced ~1.50 Moz Au.

In addition to the positive results received thus far, more drill assays are pending from the 2010 program for 96 holes totaling 32,700 metres on the Donchester and Central Duparquet properties.

Results are also expected from an airborne geophysical survey early in the new year, with an updated resource estimate on the entire Duparquet project anticipated once all the results are returned in the first quarter of 2011.

Further, Osisko is planning an aggressive 130,000 metre exploration program in 2011, which is expected to generate continuous news flow throughout the year.

"Significant potential exists for the JV to expand on our conceptual resource estimate of 5.5 Moz to ~7.0 Moz with the combination of infill and step-out drilling...over the next 12 months," Stonecap added.

The research firm's 12 month price target was calculated by adding the results of two valuation techniques and was weighted towards Stonecap's "strong belief" that Clifton Star is a prime takeover target for Osisko Mining.

The joint venture Duparquet project that was signed in December last year comprises the Central Duparquet, Duquesne, Beattie, Donchester and Dumico properties.

Aside from this project, Clifton also owns the Cat Lake property, which comprises nine mining leases totaling 238 hectares in the Lac Dubonnet Mining District northeast of Winnipeg, Manitoba.

Significant intersections from the new drill holes on the Beattie property at the site include hole BD10-267, which interesected 49.3 metres averaging 2.05g/t Au, hole BD10-282, which returned 70.5 metres averaging 1.94g/t AU and 96 metres averaging 1.21 g/t Au.

BD10-286 intersected 73.5 metres, averaging 1.70g/t Au and hole BD10-281 returned 132 metres averaging 0.94g/t Au.
The companies said that a narrower, but "very high grade" intersection of 7.5 metres averaging 69.18 g/t Au, was encountered in BD10-284.

The entire 2010 drilling program focused on three properties, including Beattie, Donchester and Duquesne, for an overall campaign of 122,800 metres, which is now completed.

Osisko has the right to acquire a 50% interest in the Duparquet project, in exchange for total exploration payments of $70 million from 2010 to 2013, and extending loans to Clifton to fund option payments on the property of $8.5 million for 24 months, and $22.5 million for 36 months.

On Monday, Osisko, the joint venture operator of the Duparquet gold project, announced results on the thirty-seven additional holes from the 122,000 metres drill program, which is focused on three properties: Beattie, Donchester and Duquesne.

The current Phase I drill program of 67,500 metres on the Beattie property is currently 98% complete, while phase II of 20,000 metres is entirely complete on the Duquesne property, and phase III of 33,000 metres is 80% finished on the Donchester property.

Assays are still awaited for the bulk of these holes.

"The results from Beattie/Donchester indicate moderately long intersections of relatively low grade gold mineralization. One hole intersected 3.78 grams per tonne over 42 metres, but the majority are between 1 to 3 grams per tonne over 10 to 25 metres. Our guess is that about 60% of the holes are potentially economic, which is positive," the research company analyzed in a statement.

The Dusquesne results are less interesting, continued LOM, with 20% potentially economic. One hole interesected 6.4 metres grading 4.47 grams per tonne gold, but most of the others were narrow in intersection width, it said.

However, the company stressed that though the results appear somewhat positive, it would be "impossible" to give a valid investment opinion without further information, such as a location and compilation map.

"Why is it that Moose Pasture Mines (a theoretical exploration company- representing most junior explorers) can produce these maps and a company such as Osisko, on the verge of becoming a producer, cannot?" LOM asked.

Clifton Star was down almost 1% on Wednesday afternoon, trading at $4.25 as of 12:21pm ET on the TSX-Venture Exchange.

The 122,000 metres drilling program is focused on three properties: Beattie, Donchester (eastern extension of Beattie) and Duquesne.

The current Phase I drill program comprises 67,500 metres of drilling on the Beattie property, currently 98% complete with 202 of 206 holes finished.

Significant intersections from the new holes at the Beattie property include 42.0 metres averaging 3.78 g/t Au, 35.9 metres averaging 2.11 g/t Au and 70.5 metres averaging 1.32 g/t Au.

A Phase II drilling program of 20,000 metres is entirely complete on the Duquesne property, and a Phase III program of 33,000 metres is 80% finished on the Donchester property.

The entire drill program is progressing on schedule, said the companies, with five drills currently on site.

Over the past two months, Duquesne drilling has been concentrating on extending the Nipissing Zone, as well as the Main Zone to the east of the Duquesne underground workings.

Highlights from the area include an intersection of 19.5 metres averaging 4.22 g/t Au, including 1.5 metres averaging 21.40 g/t Au.

Osisko has the right to acquire a 50% interest in the Duparquet project in consideration for sepnding a total of $70 million from 2010 to 2013 on exploration costs, and by extending loans to Clifton to fund option payments on the property of $8.5 million for 24 months, and $22.5 million for 36 months.

These loans would carry 5% interest, and can be converted into stock if Clifton chooses.

Earlier today, Clifton announced it had made one of its $8.5 million payments, and did not require any external borrowing from Oskisko.

Clifton also recently made a final payment of $450,000 to earn a 100%  interest in the Duquesne property at the Duparquet project.

Clifton is a junior mining exploration company with a focus on six properties that have had historic production of gold, silver, copper and nickel. The portfolio consists of five properties near the Porcupine-Destor Fault in Quebec and one on the Manitoba Ontario border.

The company was up nearly 5% to $4.35 as of 3:48pm ET on the TSX-Venture Exchange on Monday.

The company recently made a final payment of $450,000 to earn a 100%  interest in the Duquesne property at the Duparquet project, subject to an NSR which is being negotiated.

All funds for the payments were generated internally and did not require any external borrowing from Oskisko Mining, its joint venture partner on the gold project.

Clifton is a junior mining exploration company with a focus on six properties that have had historic production of gold, silver, copper and nickel. The portfolio consists of five properties near the Porcupine-Destor Fault in Quebec and one on the Manitoba Ontario border.

Duparquet is situated in the highly prolific Abitibi Greenstone Belt, which stretches through Quebec and Ontario, and is already host to several world class gold mines. 

Clifton Star’s much larger partner is earning a 50% interest in the Duparquet Project by expending CDN$78.5 million over a four year period and advancing $22 million to Clifton Star to meet option payments on the property.

Before entering into a joint venture with Osisko, Clifton Star had already defined a predominately indicated and inferred resource in excess of 2 million ounces of gold.  Clearly Osisko Mining and Clifton Star are looking to add to this resource base considerably once this year’s drilling campaign is complete.

A significant portion of the budget has been directed at one of the largest drilling programs currently underway in Quebec, with ten drill rigs working away. 

Results released today included assays from twenty six holes drilled earlier in 2010 as part of the current 66,000 meter Phase 1 drill program, which is nearing completion.  Highlights of the drilling included 25.2 meters averaging 7.54 grams per tonne gold and 38 meters averaging 1.51 grams per tonne gold.

Investor`s can expect plenty of additional drill results from Osisko and Clifton Star as the current drill program comes to an end, and simultaneously a 21,000 meter, Phase II program gets underway.

Clifton Star and Osisko are planning to drill around 120,000 meters this year at various properties within the project, including Beattie, Donchester and Duquesne.