Resource World Magazine

MINING Carlisle Goldfields completes Lynn Lake PEA By Ellsworth Dickson The MacLellan deposit is right at surface with the previous head frame behind. Photo courtesy Carlisle Goldfields Ltd. Carlisle Goldfields Ltd. [CGJ-TSX; CGJCF-OTCQX] and its independent consultant, Tetra Tech Inc., have prepared a Preliminary Economic Assessment of the company's mineral holdings in the Lynn Lake mining camp of northwest Manitoba. In a press release, Carlisle Goldfields President and CEO, Bruce Reid, said that the study envisages a 10,000 tonneper-day production rate that will be fed by four of the company's main deposits; the MacLellan Mine, Burnt Timber, Linkwood and the Farley Lake Mine projects. Encompassing some 20,000 hectares, Carlisle has five advanced-stage projects in the camp that hosts about 5 million ounces of gold resources that are NI 43-101 compliant. These are: • MacLellan Mine Project: ~2.2 million oz AuEq @ 1.9 g/t AuEq • Burnt Timber Project: 826,439 oz gold @ 1.1 g/t • Linkwood Project: 820,000 oz gold @1.2 g/t • Last Hope Project: 219,000 oz gold @5.4 g/t • Farley Lake Mine Project 1,013,000 oz gold 3.1 g/t The positive results of the PEA included a Pre-tax Net Present value (NPV) at a 5% discount rate of $625 million with a Pretax Internal Rate of Return (IRR) of 34.4%. DECEMBER/JANUARY 2014 RW December 2013.indd 47 The initial capital costs of the project total $274 million, which includes $41.5 million in contingency costs. These figures are derived from a base case of gold valued at US $1,300/oz. Mine life is estimated to be 13 years with a payback period of 2.42 years Pretax. Life-of-Mine (LOM) production from the open pit operations is forecast at 2.28 million oz gold and 1.43 million oz silver. With an average grade of 1.94 g/t gold for LOM, the annual average production is estimated at 175,000 oz gold with a peak of 277,000 oz in the second year. The average Pre-tax LOM cost is $659/oz gold, net of silver by-product credits. Carlisle Goldfields recently farmed out a 10% interest in the Farley Lake Mine Project to Canadian Orebodies Inc. [CO-TSXV] which must spend $800,000 on exploration by December 31, 2013. Approximately 90% of the resources at the Farley Lake property are located within an open pit. Mineralization is known to extend along a strike length of 800 metres with the open pit portion estimated to a depth of only 200 metres and is open along strike and to depth. In an interview, Bruce Reid told Resource World that a second more robust PEA will be completed which will be based on a 5,000 tonne-per-day operation involving just the two higher grade deposits, the MacLellan Mine and the Farley Lake Mine projects. It will be released in the first half of 2014. The next step, later in 2014, is to initiate a pre-feasibility study. Other items to be completed would include more metallurgical and environmental studies as well as signing an Impact Benefits Agreement with local First Nations. Once the feasibility is completed, plans call for Carlisle Goldfields to build the mining operations itself, starting with the MacLellan Mine. Being a prolific mining camp for nickel and gold, Lynn Lake has a government-supported and well developed infrastructure with seven previously operating mines in the camp. Manitoba also has the lowest cost power in North America at $0.03/ KWh. The Town of Lynn Lake and all of Carlisle's projects are road accessible and have electric power. The rail head is within 6 km of the MacLellan Mine. Carlisle has signed a Memorandum of Understanding with the Marcel Colomb First Nations. The Town of Lynn Lake (pop. 800) has all amenities, including a 5,000-foot paved airstrip, a 42-bed hospital, restaurants, schools, hotels, paved roads and high speed internet service. Manitoba is viewed as a mining-friendly province. n www.resourceworld.com 47 12/11/2013 6:12 PM

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