ALPINE, UT, Sept. 9 /PRNewswire-FirstCall/ - Clifton Mining's Partner, Desert Hawk Gold Corp, (DHG), has completed its $5MM funding to place the Clifton Properties into production.
DHG has also received the permits necessary to begin mining and milling. They have upgraded and doubled the size of the Cactus Mill, and they are currently moving waste in anticipation of the commencement of milling operations this month. DHG anticipates full scale commercial production by October 2010.
DHG will begin tuning the mill with other ore, for which Clifton will get a percentage, while mine development finishes on the Clifton mineral deposits.
Clifton and DHG are still awaiting the construction approvals for the two heap leaches that are planned for the area, including the Kiewit gold property leach. The plan is for multiple projects to be underway at the same time. The funding for that new construction is already in place. At current metals prices, when production begins from Clifton's properties, Clifton will receive an 8% NSR (Net Smelter Return) (12% NSR if gold is over $1250) on the precious metals and a 4% NSR on the non-ferrous metals produced from its properties.
Given that (i) excessive debt is a serious problem for all countries, (ii) there are three means of reducing real debt (paying it down, defaulting, or inflating), and (iii) the first two choices are impossible or unacceptable; we believe demand for gold as a safe haven will continue to increase. Given that present gold production is less than it was in 2000 and that few new large projects are nearing production, we believe price rationing of demand will lead to higher gold prices, resulting in higher royalties for Clifton.
Clifton trades on the U.S. OTC: (CFTN).
Note: Any statements released by Clifton Mining Company that are forward looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward looking statements invoke risk and uncertainties that may affect the company's business prospects and performance.
SOURCE Clifton Mining Company