A sample from the Lynn Lake project core shack.
(Photo: Carlisle Goldfields)

Carlisle’s primary asset is the Lynn Lake gold project in the past-producing Lynn Lake gold camp in northwest Manitoba, Canada. The project includes five near-surface deposits that contain measured and indicated mineral resources totaling 40.5 million mt, grading 2.11 g/mt for 2.75 million oz of contained gold, and inferred mineral resources totaling 51.8 million mt, grading 1.37 g/mt for 2.28 million oz of contained gold.

A preliminary economic assessment (PEA) of the past-producing MacLellan mine and Farley Lake mine deposits detailed average annual production of 145,000 oz of gold at all-in sustaining costs of C$644/oz over a 12-year mine life. The PEA outlined attractive economics, with an after-tax internal rate of return of 26% using a gold price assumption of $1,100/oz.

The PEA assumed central milling facilities having an initial milling capacity of 3,750 mt/d in years 1 to 4, ramping to full capacity of 7,500 mt/d in year 5 of a 12-year mine life. Life-of-mine head grades would average 2.2 g/mt gold. Initial capital costs were estimated at $185 million, including $35 million in contingency costs.

“The Lynn Lake project represents an attractive, low-risk growth opportunity as a high-grade, open-pit project located in one of the best mining jurisdictions in the world,” Alamos President and CEO John A McCluskey said. “Given its potential for strong economics, the structure of our existing earn-in agreement, and our commitment to advancing Lynn Lake, we are pleased to be able to consolidate our ownership of the project through our acquisition of Carlisle. This is a win for shareholders on both sides.”