Clifton Star Res Inc CFMSF

RE: SHARE PRICE

[Dupar040]

The mining fundamentals for CFO are not very good:

1. low grade for a refractory gold ore;
2. very high ore/waste ratio.  For most of mines, in the 2 to 3 range.    Osisko evaluated this ratio at 8.9 for Beattie mine .  In the last PEA, they took  5,5.
3. A refractory gold ore needs a costly mill to achieve recovery in the 90% range.  Predicted mill operating cost  are also high at $11/t compared to about 5$ for Osisko.  The smelter alternative is a very costly alternative.  Smelter costs with such arsenic content should be at least in the $800 / t.  Even at 60g/t in concentrate, a very optimistic figure, almost  30% of gold value will be lost in smelting cost.    
4. There is major increase in mining tax and future environmental regulations for mine approval seem more restrictive.  For the next years to come, mine opening authorization will be dependant of city council approval.  Look at what is happening to gas exploration in eastern Quebec.  https://business.financialpost.com/2013/01/11/gaspe-ban-puts-damper-on-petrolia-oil-drilling-plans/
5. .Open pit mining is very unpopular in Abitibi region since Osisko mine opening.  There could be significant opposition to such project in the heart of the community and just beside Duparquet Lake, a lake renowned to be on of the most beautiful lake in Abitibi region.  There are at least 3 natural protected areas on the lake and most of Duparquet citizens are cottages owners.  Mine approval could be a lot more difficult to do compare to Osisko in Malartic.        
6.  Profit margin on PEA seemed too thin compared to risk involved.   
7. Overall, a very risky project with a very poor management who has absolutely no respect to their shareholders.   With  23 years of historical milling reports in their hands on Beattie and Dumico ore,  not a word about the refractory behaviour of this ore.   Even Osisko were fooled by Mr. Miller and consequently Osisko lost a huge amount of $ in this misadventure.  On October 2^nd 2010 on Stockhouse  and Agora CFO forum, I personally warned forum participants that there was a potential metallurgical problem with this ore.  At that time, CFO shares were at $4.23…