Clifton Star Resources (CFO.TSXV) surged 15.7% to C$4.05 per share on Thursday, making it one of the top performers in the gold sector. The Canadian-based gold company is expected to release an updated NI 43-101 compliant resource estimate for its Beattie, Donchester and Duquesne Projects this quarter. Clifton Star’s properties are located near the prolific Porcupine-Destor Deformation Zone in Quebec, Canada.
Gold mining stocks as a group were largely unchanged during Wednesday’s trading session with the Market Vectors Gold Miners ETF (GDX) falling $0.26 to $62.51 per share. Newmont Mining (NEM) – the largest U.S.-based gold company in the world – rose $1.84 to 58.29 after the company announced plans to increase gold production and instituted a new dividend policy tied to the gold price.
Clifton Star Resources (CFO.TSXV) 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 sits near the prolific Porcupine-Destor Deformation Zone in Quebec with one property on the Manitoba Ontario border of Canada.
Clifton Star and Osisko Mining (OSK.TSX) have entered into a joint venture agreement on the Beattie, Donchester, Central Duparquet, Dumico and Duquesne gold properties. Osisko Mining can earn a 50% interest by investing $70 million over a 4-year period plus a standby loan of $31 million to fund option payments.
Whether the rise in the shares of Clifton Star was related to takeover rumors, which have persisted over the past year, is unknown.