Silver Stock Report
by Jason Hommel, September 13, 2006http://www.cliftonmining.com/
Clifton Mining (CFTN.PK) is an interesting story. It took management 30 years to secure up to 100 patented mining claims in a high grade historic mining area to create one congiguous block of claims. The claims were owned by as many as 100 surviving descendants of the original miners.
With such a long term laser-like focus on a specific area, management has not engaged in the typical, Vancouver, massive dilution game to try to raise as much money as possible to quickly drill any property that the company can get their hands on.
In fact, in 2003, I listed Clifton as having 50 million shares, fully diluted, and last time I checked, they had 47 milion shares fully diluted! Their share count actually went down over time, and they did not do any share consolidation. (I assume some warrants must have expired, unexercised.)
So, the market cap is about $25 million.
Some geologists have whispered that Clifton's properties could contain up to a billion ounces of silver. But those are rumors that I probably shouldn't be spreading, after all, Silver Standard, (SSRI) a company with a $1.4 billion dollar market cap has worked long and hard to drill and develop just over a billion ounces of silver on some of the best and most prospective 15 to 20 major silver properties around the world. Silver Standard's resources are 43-101 compliant, and Clifton's rumors of exploration potential just don't compare.
Clifton's management did two things to survive the era of low prices for gold and silver. First, they entered into a Joint Venture agreement with Dumont that was clearly to Clifton's advantage. Dumont had to spend up to $5 million for each of Clifton's 8 properties, and complete a bankable feasibility study, in order to earn up to a 50-60% interest. Clifton would have to spend no money, and would retain at least a 40% interest. And, as Dumont has staked additional ground, Clifton automatically gets a free 50% interest in all properties staked by Dumont. What a deal for Clifton.
The second thing Clifton did was to start up a new business producing a silver solution that effectively kills bacteria and viruses and is totally safe for people and other mammals. http://www.americanbiotechlabs.com/
American Biotech Labs (ABL) is a private company, and Clifton owns 24% of it, the rest has mostly been sold to key personel that can help the company move forward. Clifton's interest in ABL is worth at least $7 million, if not much more.
The ASAP solution has cured malaria in, I think every patient who has taken the product, in a matter of days. Malaria is the world's deadliest disease. ABL has taken a long time to do numerous scientific studies over the past ten years, and has found their ASAP solution to have no equal, and vastly superior to typical colloidal silver solutions. The Bill Gates foundation has pledged to find a cure for malaria, and who knows what kind of support ABL will have.
ABL is also partnered with General Resonance, a company that has the support of several billionaires.
GR seems to be a rather private company.
I order the ASAP product by the case, and I give it away to many friends and family, and I'm almost done with my second case in the last year. I've spoken to numerous managers at GNC Nutrition stores, and they say that the ASAP solution is one of their top selling products.
ABL has sold 2 million bottles of the ASAP product, and Clifton's investment into ABL has already been returned.
I first profiled Clifton Mining around the fall of 2003, when the share price was $.29/share. It topped out at around $2.30/share in 2004, when silver prices peaked at $8. Now, with silver on a "dip" as high as $11, you'd think Clifton could be as high as $3-4/share, but you can still get it at $.55/share today.
On of the problems of Clifton Mining stock is that it trades so thinly. But volume has been increasing over the course of this bull market in metals. The stock is also rather subject to extra swings in price due to newsletter writers like myself who occasionally profile the company.
The other problem is Clifton's long term focus. Many investors get impatient, and want things to happen "now", just as soon as they discover a stock, and right after they buy it, and do not have the patience for long term planning. But this can work to your advantage if you buy on the dips.
I typically buy Clifton Mining on the dips. I sold a bit from $1.30 to $1.10, but I bought more as the stock dipped to $.90, and I got even more as the stock dipped to $.70, and even more at $.60. Today, at $.55/share, I have the feeling I should either buy more, or send out this article. I can't believe I'm not buying more.
But I figured that since I already own just under 400,000 shares, which is 6.6 days worth of average trading volume, I shouldn't try to get selfish; but rather, let my readers get a bite, too. (CFTN has not paid me to send this out.)
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