I have owned Clifton Star since August, when it was $2.16. It closed on Friday at $4.82. Here are additional references to research:

Vancouver - With development on track at the Canadian Malartic project, a brimming treasury, and two new joint-venture exploration agreements, Osisko Mining (OSK-T) is ending 2009 on a high note.

Osisko's flagship project is Canadian Malartic, a large, open-pittable gold deposit in southwest Quebec. Development permits for the project were granted in late August and since then the company has poured more than half the concrete needed to build the mine, which totals 33,000 cubic metres. All major mill equipment is onsite and the mining fleet is being delivered and assembled. Osisko has committed or spent 70% of the project's expected capital costs and plans to increase that to 90% before the end of the year.

And while the mine is being built around it the deposit at Canadian Malartic continues to grow. A new resource estimate for the project, on the heels of drill results linking the Canadian Malartic and South Barnat deposits into a single zone, has increased the total gold count by 1.3 million ounces. The project's global measured and indicated resource now stands at 316.2 million tonnes grading 1.1 grams gold per tonne; inferred resources add 20 million tonnes averaging 0.73 gram gold. The two combine to give a total gold resource of 11.7 million oz.

Total in-pit resources now come in at 238 million measured and indicated tonnes grading 1.2 grams gold plus 3.8 million inferred tonnes averaging 0.9 gram gold, for 9.3 million oz. gold attainable with a strip ratio of 1.91 to 1. The pit shell was designed around a gold price of $US 850 per oz. At a gold price of US$1,100 per oz., the measured and indicted resource grows to 10.4 million oz. and the strip ratio falls slightly, to 1.76 to 1.

The mineralized system remains open at depth.

Osisko is now preparing an updated reserve estimate, based on the new resource and the single-pit design. The updated economic valuation, which will include a revised mining schedule, is expected by the end of January. Osisko's president, Sean Roosen, says he expects that over 95% of the new resource will convert into reserves.

The last remaining hurdle at Canadian Malartic, aside from completing mine construction, is planning and obtaining authorization to mine South Barnat. The South Barnat deposit was not included in Osisko's permits for Canadian Malartic, so separate applications and approvals are necessary. Importantly, Highway 117 currently runs across the deposit so a South Barnat mine plan has to include a plan to deviate the highway. Osisko, the Quebec Ministry of Transportation, and the Town of Malartic are currently conducting studies on the situation and are aiming to minimize the portion of the highway to be relocated as well as minimizing the impact to the local community.

With Canadian Malartic well underway, Osisko turning some of its attention to other opportunities. To that end the company has signed two joint venture deals in recent months.

The bigger deal is with Clifton Star Resources (CFO-V), a Vancouver-based junior exploring five properties along the Porcupine-Destor fault, an east-west fault system that lies some 50 km north of Malartic and runs across to Timmins, Ontario. Osisko and Clifton Star just signed a joint-venture deal for the Duparquet project, a past-producing property that covers 8 km of strike along the Porcupine-Destor fault system.

Mining operations were active at Duparquet from 1933 to 1956, during which time three shafts fed ore to a central roasting and cyanide-extraction facility. The property then sat dormant until 2007, when Clifton Star signed an option agreement with the private owners.

Continuing with the historical model, Clifton Star focused on delineating high-grade, steeply-dipping structures along the shear zone. An historic estimate pegs the resource in those high-grade structures at 2.6 million oz. gold, at an average grade of 3 grams gold.

Osisko, however, is not interested in small, high-grade structures. Instead, the major is going to search for a large, lower grade, disseminated resource. Already, resampling of historic core has returned such intercepts as 1.1 grams gold over 67 metres, 1.5 grams gold over 55 metres, and 1 gram gold over 277 metres. In addition, Clifton Star has already identified a number of parallel shear zones within the syenite intrusive host, which stretches along 2.5 km length and across 300 to 400 metres width.

"The Duparquet project has an impressive strike length and there appears to be good indications of an extensively mineralized system along this section of the fault zone," wrote John Hayes, an analyst with BMO Capital Markets, in a recent Osisko note. ""The disposition of mineralization into shear features and relative concentration of drilling in these zones to the detriment of the intervening area has created an enticing exploration opportunity... It is not inconceivable that application of the Canadian Malartic model could over time result in the delineation of a similar-sized resource."

The terms of the deal certainly indicate Osisko also sees considerable potential at Duparquet. The major can earn a 50% interest in the property by investing $70 million over four yeas, including a firm commitment to spend $15 million in 2010. Osisko will act as operator of the joint venture and says it plans to complete some 100,000 metres of drilling next year.

In addition, Osisko will advance up to $31 million to Clifton Star to finance its option payments to the underlying property vendors. The advances are repayable within 24 months and bear 5% interest. The major is also providing Clifton Star with an unsecured loan of $6 million, for general corporate purposes.

The Osisko deal certainly brought Clifton Star to the attention of investors, who propelled the junior'sshare price from the $2.50 level to its current hover near $4.50. Clifton Star has 23 million shares outstanding.

The other new Osisko joint venture deal is with Orex Exploration (OX-V). Osisko inked a deal to earn a 50% interest in Orex's Goldboro property in northeast Nova Scotia by spending $13 million on exploration over four years. The major can increase its stake in Goldboro to 60% by solely financing a prefeasibility study before late 2015. Osisko also subscribed for 13 million units of Orex at 10¢ a piece, for proceed to Orex of $1.3 million.

Osisko says the Goldboro property offers potential for a bulk minable gold deposit. The geologic structure at Goldboro has been mined via underground methods historically but, as at Duparquet, Osisko is seeking a large, open-pittable target. The company plans to drill test the structure over 2.5 km of strike and to 200 metres depth.

Osisko is certainly well-positioned financially to take on new projects while completing construction at Canadian Malartic. Following the exercise of 44 million warrants in mid-November, which brought in $241 million, the company has $825 million in cash. Osisko also recently drew down the first $75-million tranche of a financing agreement with the Canadian Pension Plan Investment Board (CPPIB), which it is using to fund development at Canadian Malartic. A second $75-million tranche is available if needed. The loans carry an interest rate of 7.5% per annum and, in exchange for extending the loan, the CPPIB received 7 million warrants exercisable for five years at $10.75.

Osisko's share price has gained handsomely since January, when it fell below $3, and currently sits at just over $8. The company has 336 million shares outstanding.

Gwen Preston, B.Sc. (Chem), MJ