Carlisle Goldfields Limited

Carlisle Goldfields Limited

March 03, 2011 17:56 ET

Carlisle Closes Purchase of Option on Last Hope Gold Property Near Lynn Lake Manitoba

TORONTO, ONTARIO--(Marketwire - March 3, 2011) - Carlisle Goldfields Limited ("Carlisle" or the "Company") (CNSX:CGJ) announces that the Company has closed its previously announced acquisition of an option on the Last Hope Gold Property near Lynn Lake, Manitoba (see Carlisle press release dated February 15, 2011). The property, which the Company intends to re-name the "Dunlop Deposit", has been substantially explored and drilled (1982-1984) and has an historical resource (non NI 43-101 compliant*) of nearly 900,000 tonnes of mineralized material at a grade of 9.4 grams per tonne. This represents over 270,000 ounces of gold. Most of this mineralization is within 150 meters of surface. This was determined from over 200 diamond drill holes into mineralized zones along a 600 meter strike length. The core from all of this previous drilling is still available on-site at the property site. The property is approximately 20 Km south-east of Lynn Lake, Manitoba and is accessible using a winter road. (*The historical resource was estimated prior to implementation of National Instrument 43-101 and, accordingly, cannot be relied upon.)

Carlisle paid $150,000 in cash and issued 2,500,000 shares as well as 2,500,000 share purchase warrants (each whole warrant entitling the holder to purchase one common share for $0.25 within 3 years after closing) to acquire all of the shares of 5918147 Manitoba Inc. ("ManitobaCo"), the private company that holds the option. ManitobaCo is now a wholly-owned subsidiary of Carlisle.

The option requires Carlisle to spend $1 million on the property by October 2012 and make a $2 million payment to earn a 100% interest subject to a 2.5% net smelter return royalty, one half of which may be purchased for $1,250,000.

Carlisle management is expecting to explore and drill test this property later in 2011 with the goal of reproving the original non-compliant resource as well as expanding the resource through added drilling along strike as well as at depth. The Company may also re-use some of the original core to aid in reproving the original estimates on this property.

Peter Karelse P.Geo, the Company's Vice-President of Exploration commented "the Dunlop Deposit is an extremely exciting exploration project. The fact that the deposit has already been substantially drilled near surface and remains open at depth is of particular interest in that the possibility to readily reproduce and build on the non-compliant resource indicated above will make this project a high priority for the Company in 2011."

Bruce Reid, President of Carlisle Goldfields stated "the level of previous drilling and high grade nature of the mineralization all point to this as a high impact project. The management of Carlisle believe that this project is an excellent way to build value for shareholders using some of the newly raised money from the recent Private Placement." 

Technical work on Carlisle's mineral properties is supervised by Peter Karelse, P.Geo, Carlisle's Vice-President Exploration and its Qualified Person as defined by National Instrument 43-101. Mr. Karelse has reviewed and approved the scientific and technical content of this news release.

About Carlisle: Carlisle Goldfields Limited is a Canadian based gold exploration and development company, focused on development of its mining leases and claims in the Lynn Lake Greenstone Belt of Northern Manitoba, covering approximately 20,000 hectares which include the former MacLellan Gold mine and two other former producing gold mines.

Forward-Looking Statement:

Some statements in this news release that are not historical facts, including statements about plans and expectations regarding future exploration programs and resource reports, are forward-looking. Investors are cautioned that the forward-looking statements of the Company may include certain estimates, assumptions and other forward-looking information. The actual future events, performance, developments and/or results may differ materially from any or all of the forward-looking statements, which include current expectations, estimates and projections, in all or part attributable to general economic conditions, and other risks, uncertainties and circumstances partly or totally outside the control of the Company, including resource estimates, drilling activities, future costs and expenses related to exploration and development programs, financing availability and other activities associated with the mineral exploration industry.

Contact Information

    Bruce Reid
    Carl McGill
    V.P. Corporate Development
    2702 - 401 BAY STREET