$9 Target PriceI'd be happy with $9....
Clifton star likely to be taken over, coverage starts with $9 target price
* David Pett, Financial Post · Saturday, Dec. 18, 2010
Next year will be a busy one for Clifton Star Resources Inc., one that could see the gold miner taken out by Osisko Mining Corp., its joint-venture partner in the Duparquet Gold Project in Quebec, says Ovais Habib, an analyst at Stonecap Securities.
An event like that would surely move the stock higher in the months to come, he says. But even short of that, several other catalysts present upside opportunities for investors.
"Aggressive exploration programs planned for 2011 are expected to generate continuous news flow throughout the year," he wrote in a note initiating coverage on Clifton Star.
Rating the stock "outperform" with a speculative risk recommendation and $9 price target, the analyst said he strongly believes Clifton Star is a prime target of Osisko.
In addition he listed several catalysts on the horizon, including assay results from Osisko's 2010 drill program and results from an airborne geophysical survey expected in January.
After that, investors can expect a resource update on the joint venture's entire Duparquet Gold Project sometime in the first quarter of next year and later in the year, assay results for the 2011 drill program.
"Significant potential exists for the joint venture to expand on our conceptual resource estimate of 5.5 million ounces to approximately 7 million ounces with the combination of infill and step-out drilling planned by Osisko over the next 12 months," he said.
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CLIFTON STAR RESOURCES
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