Resource World Magazine

www.resourceworld.com 45 A P R I L / M A Y 2 0 1 4 Following up on a Preliminary Economic Assessment, Carlisle Goldfields Ltd. [CGJ-TSX; CGJCF-OTCQX] has received optimized proposed mining plans from consultant Tetra Tech for its Farley and MacLellan gold deposits in the Lynn Lake mining camp of northwest Mani- toba. Highlights from the PEA, with the base case gold priced at US $1,100/oz, silver priced at US $18.33/oz and a 90-cent ex- change rate (Fx) are as follows (all figures are in Canadian dollars unless otherwise stated). Pre-Tax NPV at 5% of $411-million IRR of 34% Net cash flow of $642-million Payback period of 2.6 years Post-Tax NPV at 5% of $257-million IRR of 26% Net cash flow of $422-million Payback of 2.8 years Initial capital costs are estimated to be $185 million, which includes $35 million in contingency costs. Annual average mill production would be 145,000 ounc- es of gold with a peak of 230,000 ounces in the fifth year. Pretax total average for the life-of-mine (LOM) cost of $530 per ounce of gold and all-in sustaining costs of dollars per ounce gold (both are net of silver byproduct credits). The LOM gold production is forecast to be 1.74 million ounces and 1.59 million ounces of silver with a LOM average head grade of 2.2 g/t gold. The central milling facilities would provide an initial milling capacity of 3,750 tonnes per day (tpd) in years one to four and ramping to full capacity of 7,500 tpd in year five of a 12-year mine life sequenced between the Farley and MacLellan open pit deposits. At US $1,300/oz gold, the Post-Tax Net present value (NPV) rises to $400 million with a Post-Tax Internal Rate of Return (IRR) of 35% (using US $21/oz silver, 92-cent Fx). Abraham Drost, President and CEO, said, "Carlisle's project at Lynn Lake meets the challenge of a US $1,100 per ounce gold price base case recently ad- opted by a senior gold mining company and credit rating agency in the sector. The optimized PEA demonstrates com- pelling economic viability with some of the lowest-decile proforma capital and operating costs in the sector. The study features a sequenced open pit mining model between the Farley and MacLel- lan deposits at Carlisle's Lynn Lake gold camp and verifies a deep value proposi- tion for Carlisle shareholders with an ini- tial capital cost approximately $90-mil- lion lower than that of the original 10,000 tpd PEA. With the optimized PEA in place at a base case gold price of US $1,100, the company demonstrates the inherent strength and long-term viabil- ity of the Lynn Lake gold camp project at current or lower gold price levels in mining-friendly Manitoba." Carlisle Goldfields also holds the Burnt Timber, Linkwood and Last Hope gold deposits at Lynn Lake. (See Resource World December/January 2014 for more information) n Carlisle Goldfields optimizes Lynn Lake PEA "The company demonstrates the inherent strength and long-term viability of the Lynn Lake gold camp project." MINING Logging diamond drill core from hole FL12-25 at the Farley Lake mine project, 35 km east of Lynn Lake, an exploration hole that tested for mineralization at depth outside of the proposed pit. Photo courtesy Carlisle Goldfields Ltd.

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