TORONTO, ONTARIO -- (Marketwire) -- 03/07/13 -- Carlisle Goldfields Limited ("Carlisle" or the "Company") (TSX: CGJ)(OTCQX: CGJCF) is pleased to announce that it has successfully reached an agreement to extend its option to acquire the Last Hope Project for an additional term of three years (to December 31, 2015). The initial resource estimate for the Last Hope Project ("Last Hope") totals 182,000 ounces of gold (Au) in the Inferred category grading 5.29 grams per tonne ("g/t") and 37,000 ounces of Au in the Indicated category grading 5.75 g/t.
Carlisle's President and CEO, Bruce Reid commented that: "We are pleased that we were able to extend our option on the Last Hope Project. We are happy with the results thus far from Last Hope and will look to further explore the Project over the course of the next few years to add additional ounces to this initial NI 43-101 resource estimate."
---------------------------------------------------------------------------- Tonnes Au Grade g/t Contained Au Ounces----------------------------------------------------------------------------Indicated 201,000 5.75 37,000----------------------------------------------------------------------------Inferred 1,067,000 5.29 182,000----------------------------------------------------------------------------
1. Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
2. The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured mineral resource category.
3. The mineral resources in this press release were estimated using the inverse cubed grade interpolation method and the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions adopted by CIM Council.
4. The gold price used was the February 28, 2013 two-year trailing average of US$1,643/oz with a process recovery of 95%. The US$ exchange rate was $1.00.
5. Process costs used were C$15/tonne and G&A was C$5/tonne. Underground mining costs were C$80/tonne.
6. The Company's initial resource estimate used a 2.0 g/t cut-off grade.
Under the terms of the extension to the option agreement, Carlisle has agreed to incur an aggregate of $2,000,000 of exploration expenditures on or before December 31, 2015 (of which more than $1,000,000 has already been incurred), make three interim cash payments of $100,000 each on or before January 31, 2013, December 31, 2013 and December 31, 2014 and a final cash payment of $2,000,000 on or before December 31, 2015. The vendor has reserved a net smelter return royalty of 2.5% of which one half may be purchased for $1,250,000 to reduce the royalty to 1.25%.
