Corporate Presentation

Corporate Presentation – February, 2015
Where Infrastructure Meets Grade
Forward Looking Statements
Information set forth in this presentation may contain forward-looking statements. Forward-looking
statements are statements that relate to future, not past events. In this context, forward-looking
statements often address a company's expected future business and financial performance, and
often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend",
statements that an action or event "may", "might", "could", "should", or "will" be taken or occur,
or other similar expressions. By their nature, forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause our actual results, performance
or achievements, or other future events, to be materially different from any future results,
performance or achievements expressed or implied by such forward-looking statements. Such
factors include, among others, risks associated with project development; the need for additional
financing; operational risks associated with mining and mineral processing; fluctuations in gold
and other commodity prices; title matters; environmental liability claims and insurance; reliance on
key personnel; the absence of dividends; competition; dilution; the volatility of our common share
price and volume; and tax consequences to U.S. Shareholders. Forward-looking statements are
made based on management's beliefs, estimates and opinions on the date that statements are
made and the Company undertakes no obligation to update forward-looking statements if these
beliefs, estimates and opinions or other circumstances should change. Investors are cautioned
against attributing undue certainty to forward-looking statements.
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The Carlisle Vision
Where Infrastructure Meets Grade
“Strong economics in the recent preliminary economic assessment position Carlisle Goldfields and its Joint
Venture partner Aurico Gold Inc. to conduct a feasibility study on resuming gold production at Lynn Lake. Our
vision is to build a ‘best-in-class’ mining operation on sustainable development of the high grade, open-pittable
Farley Lake and MacLellan gold deposits in the past-producing Lynn Lake Gold Camp, Manitoba, Canada.
We ultimately hope to share the benefits of new mine development at the Lynn Lake Project with our First Nation
stakeholders, the community of Lynn Lake, Province of Manitoba and AuRico and Carlisle shareholders. We will
demonstrate leadership by fostering a social license to operate and a credible technical approach to developing a
robust mineral reserve which supports a construction decision.”
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Capitalization
TSX CGJ
OTCQX CGJCD
52-Week Range: $0.16-$0.58
Market Capitalization: ~$16 mm
Cash Position: ~CAD$9 million
Average Volume 3 mo: 200,000 shares/day
Common Shares Issued: 55mm
Insider Exposure: 32% (incl. AuRico)
Warrants: 10mm Strike Price: $0.39-0.97
Options: 3.5mm Strike Price: $0.32-$2.70
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Carlisle Achieves Project Validation
Summary of Recent Material Changes
1. Carlisle completes an Optimized PEA on the Lynn Lake Gold Camp
7,500 tpd @ US $1100 Au ; IRR of 34%, Post-Tax NPV $257 million
(See www.carlislegold.com for PEA Press Release dated February 27, 2014)
2. Paradigm Capital initiates research coverage on the company as part of Gold Sector
“Takeover 20” List and $1.75/share price target
3. Strategic Partnership announced with AuRico Gold Inc.
Approx. 19.9% of Carlisle @ $0.52 per share for $5.6 million proceeds
AuRico acquires a direct 25% interest in the Lynn Lake Gold Camp Project for
$5.0 million proceeds; Joint Venture formed with AuRico Gold (“AUQ) as
Operator.
AUQ to fund $26mm over 3 years to advance feasibility, explore along trend and
raise stake to 60% (See Press Release Dated November 11, 2014)
4. Capital Structure consolidated for growth, 6.5:1
5. $13 million spending on Feasibility and exploration for 2015; $11mm by AUQ
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35,000 Hectares of Greenstone Belt
Carlisle/AuRico JV Controls the Deposits as Indicated Below
AGASSIZ METALLOTECT
JV Feasibility Study Area
Approx. 5000 historical drill holes on Carlisle Properties with over 20 additional gold
occurrences identified along strike: replacement drilling costs approximate $200 mm in value
$17.5mm drilling spent to date since 2009 by Carlisle; < $3.50/ oz discovery cost
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Lynn Lake Gold Camp Optimized PEA
7,500 tpd at US $1100 Au
Pre-tax
Post-Tax
NPV @ 5% of $411 million
NPV @ 5% of $257 million*
IRR of 34%
IRR of 26%
Net Cash Flow of $642 million
Net Cash Flow of $422 million
Payback period of 2.6 years
Payback period of 2.8 years
Initial capital costs of $185 million ($150mm + $35mm in contingencies allowance)
Central milling facilities with an initial capacity of 3,750 tpd ramping to
full capacity of 7,500 tpd
Avg. grade of 2.2 g/t gold, LOM and annual production of 145,000 oz gold
Sequenced mine life of 12 years (Farley, MacLellan) with LOM gold production of
1.74 million ounces of gold and 1.59 million oz. silver at US $1100 Au, & US $18 Ag
Pre-tax total average LOM cash costs of US$477/oz; all in sustaining costs US$700/oz
*Proforma $0.95/share post-tax Net Asset Value
See www.carlislegold.com for PEA Press Release dated February 27, 2014
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Lynn Lake Gold Camp Optimized PEA
Operating Statistics
Phase 2 Layback
MacLellan
Farley
MacLellan Phase 1,2
Farley
MacLellan Phase 1,2
Average Cash Cost per Tonne LOM
LOM Unit Cost
Total Cost LOM
($)
($ Millions)
$/t-milled
18.14
489.91
Processing
$/t-milled
17.01
459.14
Haulage
$/t-milled
1.55
41.72
Tailings
$/t-milled
0.54
14.54
Site G&A
$/t-milled
1.62
43.86
Environmental
$/t-milled
0.13
3.54
Geology
$/t-milled
0.15
4.17
Total Operating Costs
$/t-milled
39.14
1,056.88
Category
Units
Mining
Total Payable Revenues LOM (excludes refining & royalty costs)
8
2,158.12
See www.carlislegold.com
for PEA Press Release dated
February 27, 2014
Probe Mines vs. Carlisle Goldfields
Market Cap
(C$M)
Probe Mines
Carlisle Goldfields
$526
$16
Project
Name
Borden Lake
Lynn Lake
Ownership
100%
75%
Location
Ontario
Manitoba
Stage
Resource Definition
PEA
Mining Style
Open Pit/UG
Open Pit
Resources
Underground
Tonnage (Mt)
12.3
27.0
Grade (g/t)
5.14
2.20
Contain Au
(Koz)
2,031
1,909
Open Pit
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Farley & MacLellan O/P
Other Deposits (O/P)
Tonnage (Mt)
70.5
47.7
Grade (g/t)
1.03
1.22
Contained Au
(Koz)
2,335
1,868
Goldcorp recently announced a definitive
agreement to acquire Probe Mines for $5.00 a
share or ~$526M
Probe’s primary asset, Borden Lake, like Lynn
Lake, has excellent infrastructure and is
located in a mining-friendly jurisdiction
The valuation ascribed to the two projects is
the largest difference between them
Probe was valued at $133/oz per M&I
resource ounce
Carlisle is currently valued at ~$8/oz of M&I
resource ounces and currently in feasibility
on Farley Lake and MacLellan open pits as
funded by partner AuRico Gold Inc. (AUQ).
“…Makes AUQ’s Recent Lynn
Lake Deal Look Pretty Savvy…”
Scotia Capital, Jan.19-15
Lynn Lake Gold Camp Resource
7,500 tpd PEA at US $1,100 Au
Project
Resource
Category
Cut-off Grade
Au Equiv. g/t
Tonnage
Au Grade
g/t
Ag Grade
g/t
Au Equiv.
g/t
Contained
Metal Au
Equiv., Oz
Resource parameters of two deposits at the Lynn Lake Gold Camp.
MacLellan Mine
Project
Farley Mine
Project
COMBINED
Measured
0.59
9,100,000
2.03
5.05
2.09
547,000
Indicated
0.59
8,900,000
1.61
3.85
1.65
421,000
Inferred
0.59
600,000
1.79
3.50
1.84
32,000
Measured
–
–
–
–
–
–
Indicated
0.67
5,300,000
3.31
–
3.31
528,000
Inferred
0.67
3,100,000
2.57
–
2.57
240,000
Measured
–
9,100,000
2.03
5.05
2.09
547,000
Indicated
–
14,200,000
2.24
2.41
2.27
949,000
Inferred
–
3,700,000
2.44
0.57
2.45
272,000
Notes:
1. CIM definitions were followed for estimating mineral resource.
2. Assumed mining dilution rate 5%.
3. Mineral Resources are estimated using a diluted cut-off grade (AU Equiv.)
4. Whittle Pit Shells are designed using a gold price of US$1,241/oz, and a Silver price US$20/oz.
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5. Mineral Resources are estimated using a gold recovery rate 89.3% and 93.7% for MacLellan and Farley separately.
6. Mineral Resources are estimated using a silver recovery rate 61% for MacLellan only.
7. There are no known risks that could materially affect potential development.
Lynn Lake Conceptual Project Timeline*
Activity Description
2015 ($9mm)
Resource drilling
Environmental baseline
(Farley, MacLellan)
Resource Update/
Feasibility/Tradeoffs
with mine plan recommendations
Project Description (Environmental)
Impact and Benefits Agreement
Environmental Impact Study
Mine Permitting; Cert. of Auth.
Detailed Project Design; Financing
Mine Construction (Q3/2018)**
Mine Production (Q2/2020)**
* Subject to Feasibility Study verification ** Subject to Production Decision
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2016
2017
2018
Lynn Lake Gold Camp:
Conceptual Farley Lake Mine Plan*
Farley Lake Mine
Years 1-6
Mining, Crushing, Transport
* PEA level analysis; Subject to Feasibility Study verification
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Lynn Lake Gold Camp:
Conceptual MacLellan Mine Plan*
MacLellan Mine
Years 4-12
Mining, Processing,
Tailings Mgmt.
* PEA level analysis; Subject to Feasibility Study verification
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Farley Lake Mine Surface Geology
Iron Formation-Hosted Lode Gold Deposit
0
14
__
250m
N
Farley Lake Mine Geological Section
N
West-Facing View
A’
A
100m-
200m-
FL12-02:
5.88 gpt/10m
incl. 13.5 gpt/3.0m
FL12-03:
19.0 gpt /1.0m
12.0 gpt/ 2.0m
Rock Types
Overburden
Mafic Sill
Granodiorite
Chl Chert Anth Mag-Fe Formation
Au (gpt)
Chl Chert Mag-Fe Formation
Chert Mag-Fe Formation
10.0 to 50.0
Argillite
50+
15
55
654-342:
27.7 gpt/2.1m
Incl. 63.2 gpt/0.3m
0
150m
Conjugate Fracture Control
Farley Lake Mine Project
Au Present Below Historical Farley Pits*
Farley Lake
0
Au (gpt)
0.0 to 5.0
5.0 to 10.0
10.0 to 50.0
50+
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*defined by ~350 ddh
100m
Farley Lake Mine Project
North-Facing View
N
0
17
200m
Farley Lake Mine Project
West-Facing View
N
“Farley Deeps” (Expl. Target)
Best Intercept 6.85g/t over 35m)
0
18
200m
MacLellan Mine Project Geology Section
Plan View
Shear Zone-Hosted Lode Gold Deposit
Underground Infrastructure
Section Looking East
Basalt
Tuff
Silica flooding/Qtz Vng
Mineralized Horizon
19
0
250m
MacLellan Mine Project
Whittle Results of the Pit Optimization*
N
0
250m
* On wireframe resource shells defined by ~1350 ddh
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Mining Friendly Manitoba, Canada
Lowest cost industrial power in North
America ($0.03/KWh)
Educated workforce in mining
Mining and Petroleum is the 2nd largest
resource industry (+$3 billion annually)
Currently 8 operating mines
Pro - Mining Government; highly
motivated to re-establish mining
operations at Lynn Lake
Constant Total Tax rate for 40 years (28%)
10-year tax holiday on initial capital
Well developed government-supported
infrastructure
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•
Ports and Airports
•
Rail and paved highways
Lynn Lake, Manitoba:
Infrastructure, Infrastructure, Infrastructure!
Among the Lowest industrial power
cost in the world ($0.03/KWh)
Highly incentivized to generate new
tax base on brownfields mine sites
Commercial Airport- 5,000 ft. runway
Good paved roads to all sites
Connected to National Railroad
within 6 Km from MacLellan Mine;
Town of Lynn Lake - Amenities
MACLELLAN MINE SITE
TOWN OF LYNN LAKE
•
Hospital with 42 beds, restaurants,
schools, hotels, paved roads, internet
Signed Memorandum of
Understanding with Marcel
Colomb First Nation
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Opex: The Manitoba Advantage
Power Costs 30-50% of Opex
BRAZIL
Philippines
SWEDEN
CHILE
Australia
SINGAPORE
PAPUA NEW GUINEA
Guyana
Mexico
NEW ZEALAND
COLOMBIA (BOGOTA)
HONG KONG IS
Ontario
PERÚ
INDONESIA
United States
SOUTH AFRICA
INDIA
China
TAIWAN
DUBAI
Argentina (Buenos Aires)
KOREA (SOUTH)
VENEZUELA
NIGERIA
Russia
MANITOBA
KUWAIT
0
5
10
15
20
25
30
35
40
Worldwide Industrial Power Costs ~2013 (US cents/kwh)
23
45
50
Board of Directors
Abraham Drost, M.Sc., P.Geo. (Ex-Sabina, Sandspring, Premier Royalty)
President & CEO, Director
Bruce Reid, B.Sc., MBA Executive Chairman & Director
James Macintosh, B.Sc.
Lead Director & Chairman of the Audit Committee
Jennifer Boyle, LLB Director
Donald A. Sheldon, LLB Director
Roy Shipes, P.Eng. Director
Nick Tintor, B.Sc. Director
Peter MacPhail, COO AuRico
Chris Richter, Exec. VP AuRico
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Carlisle Goldfields Limited
Demonstrated Economic Viability: $257 million NPV (Post-tax), 34% IRR
Significant Existing Assets: Lynn Lake Gold Camp
Strategic Partnership with AuRico Gold Inc. (AUQ:TSX)
Infrastructure in Place: Pro-Mining Province
In Feasibility; Resources to Reserves
A Gold Producer in the Making
See www.carlislegold.com for PEA Press Release dated February 27, 2014
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For more information:
Carlisle Goldfields Ltd.
401 Bay Street, Suite 2702
Toronto, Ontario, Canada
Abraham Drost President and CEO
807-252-7800 adrost@carlislegold.com
Nicholas Konkin Director of Investor Communications
416.642.0869 x 3 nk@carlislegold.com
www.carlislegold.com
Twitter: @Carlislegold