Carlisle Goldfields Limited
TSX : CGJ

Carlisle Goldfields Limited

March 13, 2012 09:36 ET

Carlisle's Updated Resource on the MacLellan Mine Project Triples Measured and Indicated Resources to 2.02 Million Gold Equivalent Ounces

TORONTO, ONTARIO--(Marketwire - March 13, 2012) - Carlisle Goldfields Limited (TSX:CGJ) (the "Company" or "Carlisle") announces that an updated mineral resource estimate has been calculated for the Company's 100% owned MacLellan Mine Project near Lynn Lake in northern Manitoba.

Highlights

  • Measured and Indicated In Pit Resources have increased by 438% to 1.7 million ounces AuEq ("Gold Equivalent") at an average grade of 1.76 g/t AuEq contained in 30.0 million tonnes at grades of 1.68 g/t Gold ("Au") and 4.4 g/t
    Silver ("Ag").


  • Measured and Indicated Combined In Pit and Underground Resources have increased by 207% to 2.02 million ounces AuEq at an average grade of 1.94 g/t AuEq contained in 32.4 million tonnes at grades of 1.86 g/t Au and 4.4 g/t Ag.

  • Preliminary Feasibility Study initiated for the MacLellan Mine Project.

The results of the latest mineral resource estimate on the MacLellan Mine Project are summarized below in Table One.

Bruce Reid, President of Carlisle, commented, "This significant increase contained in the Measured and Indicated pit-contained ounces at the MacLellan Mine Project are a direct result of our exploration team's successful efforts to define additional value for shareholders through the drill bit. As a result, management believes this project now has the critical mass to move directly to feasibility-level engineering studies."

Peter Karelse, P.Geo, the Company's Vice-President of Exploration, commented, "The updated resource estimate represents a substantial step in the development of the MacLellan Mine Project. In addition, our exploration pipeline will continue to deliver results in 2012, as the Company's additional resource estimates are completed for our other projects in the Lynn Lake area."

This news release should be read in conjunction with the March 2012 and May 2010 mineral resource statements for the MacLellan Mine Project, highlights of which are presented in Tables One and Two at the end of this news release, respectively. An updated National Instrument 43-101 ("NI 43-101") Technical Report will be completed by P&E Mining Consultants Inc. within 45 days of this news release. All references to the Company's May 2010 mineral resource estimate are reported from the Company's NI 43-101 Technical Report dated August 3, 2010, available on SEDAR (www.sedar.com).

Updated Mineral Resource Estimate for the MacLellan Mine Project

Since the May 2010 mineral resource estimate, the Company has completed approximately 45,000 metres of in-fill and extension drilling in 53 holes at the MacLellan Mine Project that were incorporated into the updated mineral resource estimate. For the purposes of this news release, pit-contained mineral resources are reported at a cut-off grade of 0.4 grams of gold- equivalent per tonne of mineralization ("g/t AuEq") and underground mineral resources are reported at a cut-off grade of 2 g/t AuEq.

On a combined open pit and underground mineral resource basis, Measured and Indicated mineral resources increased to a total of 2.02 million AuEq ounces at December 31, 2011, which represents a 510% increase in tonnes, a 207% increase in AuEq ounces, and a 50% decrease in the average grade compared to the May 2010 mineral resource estimate. The increase in measured and indicated tonnes is largely due to the addition of new resources by westward extension drilling, the lowering of the cut-off grade, and the conversion of Inferred mineral resources to the Measured and Indicated categories.

Total Inferred mineral resources decreased 75% from 506,000 ounces to 127,000 AuEq ounces at December 31, 2011. Inferred mineral resource tonnage decreased 57% and AuEq grade decreased 42% compared to the prior mineral resource estimate. This net decrease in Inferred mineral resources is due primarily to the conversion of Inferred mineral resources to the Measured and Indicated mineral resource categories as a result of in-fill drilling.

Highlights from the March 2012 and May 2010 mineral resource statements for the MacLellan Mine Project are presented in Tables One and Two, respectively, at the end of this news release.

The MacLellan Mine drilling program continued to deliver positive results in areas that were either not drilled or were under-drilled and consequently not included in the past (May 2010) resource calculation. This recent drilling program filled in most of those gaps. This recent drilling in combination with the lower cut-off grade are the reasons for the significant increase in the in-pit Measured and Indicated resource estimates reported in the updated resource calculation.

A key contribution to the increase in the mineral resources was the Western Extension drilling which addresses the area to the west of the 2010 defined resource area extending up to the Keewatin River. Drilling in this zone west of the MacLellan Mine zone encountered significant gold mineralization. Drilling indicates that the mineralized trend is gold dominant and that the tenor of the silver mineralization decreases significantly towards the west, which is reflected in the decrease in the overall silver grades reported in the March 2012 mineral resource estimate relative to the May 2010 mineral resource estimate. This zone has added over 400 metres of strike to the updated MacLellan Mine Project resource.

In 2011, a reconnaissance-level drilling program was carried out at the South Zone. This drilling, which was previously reported (see news release dated September 27, 2011), focuses on an area approximately 400 metres to the south of the MacLellan Mine zone following up on historic drilling. The South Zone exhibits a geophysical signature similar to the MacLellan Mine deposit and coincident with encouraging historic drilling results. The Drill results from the Company's 2011 drill program encountered significant gold mineralization but it has not been included in the updated NI 43-101 mineral resource estimate as further drilling is necessary before a mineral resource estimate may be calculated.

The Company completed a reconnaissance-level drilling program at the Bruichladdie Zone that encountered gold mineralization, which is interpreted to be a further westward extension of the MacLellan Mine Project for a cumulative strike of more than two kilometres. The drilling was exploratory in nature and follows up on the continuation of the induced polarization geophysical signature associated with the MacLellan Mine, and historic geochemical results. This zone was also not included in the current resource calculation as the project has not been sufficiently drilled for a mineral resource estimate to be calculated. The Company may return to drilling this zone later in 2012 depending on the Company's reassessment of priorities based on the success of the current drill program in other areas around Lynn Lake.

Preliminary Feasibility Study

In other news related to this new resource update announcement, the Company has engaged Wardrop Engineering, a Tetra Tech Company, to undertake a Preliminary Feasibility Study on the MacLellan Mine Project. Management considers these new MacLellan Mine mineral resource results to be highly significant and as a result the Company has decided to move directly to the preparation of a Preliminary Feasibility Study. This study is expected to be completed in Q4 2012. This study will also include an environmental study based on the baseline data started in 2011. The Burnt Timber Mine Project may also be included in this Preliminary Feasibility Study, but that will be determined depending on the timing of the anticipated new Burnt Timber mineral resource estimate. Currently, management is targeting early Q2 of 2012 for that announcement on the Burnt Timber resource estimate.

To view the Plan Map of the MacLellan Mine Project Area, please visit the following link: http://media3.marketwire.com/docs/Map1cgj.pdf.

Exploration Update

Exploration activities are ongoing at the Company's projects in the Lynn Lake area with two drilling rigs. Drilling activities during 2011 focused on the MacLellan Mine and Burnt Timber projects. The drilling rigs are currently completing a 20-hole program at the Last Hope Project, and drill results are expected to be available in the second quarter of this year. The Company is currently in the process of preparing initial mineral resource estimates for the Burnt Timber, Last Hope, and Farley Lake projects. The Company expects to report a new mineral resource estimate for the Burnt Timber Project in the second quarter of 2012, and to report mineral resources for the Last Hope and Farley Lake projects in the second half of 2012. In 2012, the Company has plans to drill over 60,000 metres, which will be fully-funded by cash on hand.

To view the Property Location Map, please visit the following link: http://media3.marketwire.com/docs/Map2cgj.pdf.

To view TABLE ONE, please visit the following: http://media3.marketwire.com/docs/Table1cgj.pdf.

To view TABLE TWO, please visit the following link: http://media3.marketwire.com/docs/Table2cgj.pdf.

This mineral resource estimate was undertaken by P&E Mining Consultants Inc. ("P&E") for Carlisle under the supervision of Eugene Puritch, P.Eng., President of P&E who is a qualified person as defined by NI 43-101 with more than 30 years of experience in exploration and development of gold projects. All technical information contained in this press release has been reviewed and approved by Mr. Puritch.

Carlisle's exploration programs are carried out under the supervision of Peter Karelse, P.Geo., Vice President of Exploration, who is a qualified person as defined by NI 43-101 with more than 30 years of experience in gold exploration and development. All technical information contained in this press release has been reviewed and approved by Mr. Karelse.

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 as well as numerous other historically identified Gold Zones all within close distance of the town of Lynn Lake.

This press release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction. The Securities of the Company have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent an applicable exemption from the registration requirements.

Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information" within the meaning of Canadian securities law. Other than statements of historical fact, all statements are "Forward-Looking Statements", including statements regarding the anticipated delivery of studies and reports and statements that involve various known and unknown risks and uncertainties and other factors. There can be no assurance that such statements will prove accurate. Results and future events could differ materially from those anticipated in such statements. Readers of this press release are cautioned not to place undue reliance on these "Forward-Looking Statements". Except as otherwise required by applicable securities statutes or regulation, Carlisle expressly disclaims any intent or obligation to update publicly forward- looking information, whether as a result of new information, future events or otherwise.

Neither IIROC nor the TSX accepts responsibility for the adequacy or accuracy of this release.

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