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Market: TSX-V
Sector: General Mining - Gold
EPIC: CFO
Latest Price: C$1.05  (0,00%)
52-week High: C$2.14
52-week Low: C$0.92
Market Cap: C$37.44M
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Clifton Star Resources
www.cliftonstarresources.com

Clifton Star Resources Inc. (TSX.V: CFO) ["Clifton Star"] (Frankfurt Exchange: C3T) 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 seven properties, six of them near the Porcupine-Destor Fault in Quebec and one on the Manitoba Ontario border, all in Canada.

Full Clifton Star Resources profile here
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Clifton Star Resources and Orezone Gold: two next takeover targets?

15th Feb 2011, 9:07 am

Mergers and acquisitions appear to be all the rage in the mining industry as many companies are eager to build their resources on the back of rising commodity prices, with several such deals having closed as of late.

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.

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