Corporate Presentation

Corporate Presentation
December 2014
“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, the following risks: the risks associated with outstanding litigation,
if any; 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
potential for conflicts of interest among certain officers, directors or promoters with certain other
projects; 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.
2
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 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 on which a production platform can be built.
Abraham Drost, President & CEO, Carlisle Goldfields
3
Strategic Partnership with AuRico Gold Inc.
Strategic Private Placement and Earn-In/JV Transaction
Strategic Partnership announced with AuRico Gold Inc.
(See Press Release Dated November 11, 2014)
AuRico completes private placement to acquire 70.6 million common shares of CGJ
•
Approx. 19.9% of Carlisle @ $0.08 per share for $5.6 million proceeds
AuRico acquires a direct 25% interest in the Lynn Lake Gold Camp Project for
$5.0 million toward formation of a Joint Venture with AuRico as Operator.
•
AuRico can earn an additional 26% Interest in the Lynn Lake Gold Camp Project by
spending:
•
A minimum of $20 million towards advancement of a Feasibility Study within a 3 year period
•
AuRico can earn an additional 9% of the Lynn Lake Gold Camp on delivery of a NI 43-101 compliant
Feasibility Study
Carlisle and AuRico will fund (50/50) further non-feasibility exploration at Lynn Lake
•
4
AuRico and Carlisle each to fund up to $2 million annually; Carlisle to operate
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
5
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, including $35 million contingency costs
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 <$700/oz
*Proforma $0.95/share post-tax Net Asset Value
See www.carlislegold.com for PEA Press Release dated February 27, 2014
6
Lynn Lake Gold Camp Optimized PEA
Operating Statistics
Phase 2 Layback
MacLellan
Farley
MacLellan Phase 1,2
Farley
MacLellan Phase 1,2
Average Cash Cost per Tonne LOM
LOM Unit Cost
Total Cost LOM
($)
($ 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)
7
2,158.12
See www.carlislegold.com
for PEA Press Release dated
February 27, 2014
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
8
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.
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.
Open Pit Grades in North America
9
Lynn Lake Conceptual Project Timeline*
Activity Description
2015
Resource drilling
Environmental baseline
(Farley, MacLellan)
Resource Update/
Prefeasibility/Tradeoffs
with mine plan recommendations
Project Description (Environmental)
Definitive Feasibility Study
Environmental Impact Study and IBA
Mine Permitting; Cert. of Auth.
Detailed Project Design; Financing
Mine Construction (Q2/2018)
Mine Production
* Subject to Feasibility Study verification
10
2016
2017
2018
Lynn Lake Gold Camp:
Conceptual Farley Lake Mine Plan*
Farley Lake Mine
Years 1-6
Mining, Crushing, Transport
* Subject to Feasibility Study verification
11
Lynn Lake Gold Camp:
Conceptual MacLellan Mine Plan*
MacLellan Mine
Years 4-12
Mining, Processing,
Tailings Mgmt.
* Subject to Feasibility Study verification
12
Farley Lake Mine Surface Geology
Iron Formation-Hosted Lode Gold Deposit
0
13
__
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+
14
654-342:
27.7 gpt/2.1m
Incl. 63.2 gpt/0.3m
0
150m
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+
15
*defined by ~350 ddh
100m
Farley Lake Mine Project
North-Facing View
N
0
16
200m
Farley Lake Mine Project
West-Facing View
N
0
17
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
18
0
250m
MacLellan Mine Project
Whittle Results of the Pit Optimization*
N
0
250m
* On wireframe resource shells defined by ~1350 ddh
19
Mining Friendly Manitoba, Canada
Lowest cost industrial power in North
America ($0.026/KWh)
Educated workforce in mining
Mining and Petroleum is the 2nd largest
resource industry (+$3 billion annually)
Currently 7 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
20
•
Ports and Airports
•
Rail and paved highways
Lynn Lake, Manitoba: Infrastructure
Infrastructure, Infrastructure!
Among the Lowest industrial power
cost in the world ($0.026/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
21
Opex: The Manitoba Advantage
Power Costs up to 50% of Opex
BRAZIL
Philippines
SWEDEN
Guyana
CHILE
Australia
SINGAPORE
PAPUA NEW GUINEA
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)
22
45
50
Management Team
Abraham Drost, M.Sc., P.Geo, President & CEO
Former CEO and Director of Premier Royalty Corp.
Bruce Reid, BSc, MBA, Executive Chairman
Founder, and former President and CEO of U.S. Silver Corp.
Peter Karelse, P. Geo, VP Exploration
Former exploration manager for Rainy River Minerals Inc.
Ryan Weston, M.Sc. P. Geo, Chief Geologist
Former Exploration Manager for Cliffs Resources Inc.
Julio DiGirolamo, CPA, CA, Chief Financial Officer
Former Vice President with Greenstone Resources
Rick Adams, P.Eng, Chief Operating Officer
Over 35 years of experience in mining projects in North America
23
Board of Directors
Bruce Reid, B.Sc., MBA Executive Chairman & Director
James Macintosh, B.Sc.
Lead Director & Chairman of the Audit Committee
Abraham Drost, M.Sc., P.Geo.
President & CEO, Director
Jennifer Boyle, LLB Director
Donald A. Sheldon, LLB Director
Roy Shipes, P.Eng. Director
Nick Tintor, B.Sc. Director
24
Capitalization
TSX CGJ
OTCQX CGJCF
Share Price (11/10/2014): $0.06
52-Week Range: $0.025-$0.13
Market Capitalization: ~$20 mm
Average Volume: 1,000,000 shares/day
Common Shares Issued: 355 million
Insider Exposure: 15%
Warrants: 95 mm
Strike Price: $0.06-0.15
Options: 22.5mm
Strike Price: $0.05-$0.415
25
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.
Infrastructure in Place: Pro-Mining Province
Compelling Valuation
A Gold Producer in the Making
See www.carlislegold.com for PEA Press Release dated February 27, 2014
26
For more information:
Carlisle Goldfields Ltd.
401 Bay Street, Suite 2702
Toronto, Ontario, Canada
Abraham Drost President and CEO
416.642.0869 [email protected]
Nicholas Konkin Director of Investor Communications
416.642.0869 x 3 [email protected]
www.carlislegold.com
Twitter: @Carlislegold

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