Clifton Star Res Inc CFMSF

RE:Option agreement?

[benandemmiboo]

TMR: Which companies listed in Spec Value Hunter do you consider to be good values?
 
JK: Among companies with advanced deposits, Clifton Star Resources Inc. (CFO:TSX.V; C3T:FSE) just completed a prefeasibility study on its Duparquet project in Québec, which concluded that pressure oxidation is the best way to process the ore. However, with a $1,300 per ounce ($1,300/oz) base case gold price, its after-tax net present value (NPV) of $135 million ($135M) and internal rate of return (IRR) of 12.1% aren't high enough to get excited about. This is an example of a company treading water, waiting for a higher gold price. I recommend it to people who believe that gold is going back to $1,500+/oz. At that price Clifton Star's NPV and IRR increase substantially and the current $15M market valuation will grow by multiples as the junior becomes a buyout target.