The MacLellan Property comprises 6 claims and 1 mining lease, over the MacLellan Mine site, covering an area of 886 ha. The adjacent and contiguous Dot Property comprises 3 claims and 106 contiguous mining leases covering an area of 2,363 ha. The claims and mining leases comprising both properties are held 100 % by Carlisle.
Geologically, the MacLellan deposit is situated in the North belt of the Lynn Lake greenstone belt within the Churchill Structural Province of the Canadian Shield. The North belt is a north-facing homocline and consists of rhyolites, overlain by andesite and basalt, sedimentary rocks and an upper basaltic unit. Both the MacLellan (Au, Ag) and the Farley Lake deposit (Au) are located within this belt, which has been termed the 'Rainbow Trend'. The South belt of the Lynn Lake greenstone belt is comprised of lens-shaped volcanic and sedimentary units and hosts the Burnt Timber deposit (Au). The most significant feature of the South belt is the east-west trending Johnson Shear Zone which hosts numerous gold prospects and showings over a 44 km strike length.
Locally, the MacLellan deposit is hosted within an unique stratigraphic sequence known as the Agassiz Metallotect within the Wasekwan Group rocks of the North belt. The Agassiz Metallotect comprises interlayered siltstones, basalts, iron formations and minor felsic volcanics.
The MacLellan Mine is hosted by an interbedded sequence of biotite-rich to siliceous siltstone and high magnesium basaltic flows and minor tuffs. Overlying and underlying this 'mine sequence' are massive and fragmental mafic volcanic rocks. The mine is subdivided longitudinally into three mineralized deposits, from west to east they are the Rainbow-Dot deposit, the MacLellan deposit (comprised of Main and East Main zones) and the Nisku deposit. All of these deposits are located south of a major east-west trending fault structure known as the North Shear Zone ("NSZ").
The MacLellan Deposit has been recently recognised as a synshear-hosted, orogenic-related gold deposit although there has been debate on the actual genesis and tenor of the mineralization.
Most of the previous production was taken from the MacLellan Main and East Main zones. The MacLellan Main zone includes a number of grade-defined mineralized lenses with strike lengths ranging from 20 to 80 m, and widths averaging several metres; most lenses are in contact with the NSZ. Mineralization in the Main zone is predominantly hosted in tuffaceous sediments within mafic volcanics although gold distribution is erratic and can occur in any rock type. The highest gold and silver values are associated with zones of silicification and mobilization adjacent to carbonate-quartz-sulphide veins. The East Main zone mineralization consists of 30 to 40 % disseminated iron sulphides in addition to arsenopyrite, sphalerite and galena occurring as tightly folded conformable lenses. The nature and style of mineralization appears to be similar to the Main zone lenses.
Mineralization at the Nisku deposit is complex with gold occurring in irregular sulphide concentrations and cherty zones within metasediments and in veins. The Rainbow-Dot deposit consists of two en-echelon lenses of quartz and quartz-carbonate veins with disseminated pyrite, pyrrhotite and lesser sphalerite and galena.
Gold and / or silver-rich minerals are rare in the MacLellan deposit, with most of the gold occurring within iron-bearing sulphide minerals. Carlisle have noted a direct correlation between gold and silver grades.
Carlisle have drilled 62 surface diamond drill holes totalling 21,766 m on the Property between 2006 to 2008.
From a total database of 446 surface and 810 underground diamond drill holes, data from 342 surface and 778 underground drill holes were utilized for the May 23, 2010 Mineral Resource Estimate. The database was verified in Gemcom with minor corrections made to bring it to an error free status.
The following is a summary of the mineral resource calculation prepared with respect to the MacLellan Property. The definitions of Measured, Indicated and Inferred Resources are in compliance with the CIM Definitions and Standards on Mineral Resources and Mineral Reserves, December 11, 2005.
The P&E May 2010 Updated Mineral Resource Estimate utilized conventional statistical analysis, variography and grade interpolation via Gemcom block modeling. Utilizing 1.5 m composites for gold and silver, the block models within an interpreted 3-D solid domains for the MacLellan Main zone and Nisku deposits were coded with the rock codes, bulk density and classified into Measured, Indicated and Inferred categories.
The Mineral Resource Estimate tabulated below for MacLellan Main zone and Nisku deposits were compiled using a 0.65 g/t AuEq cut-off grade for the open pit portion of the resource estimate and a 2.5 g/t AuEq cut-off grade for the underground portion of the resource estimate.
P&E 2010 MacLellan Mineral Resource Estimate1,2,3,4,5,6
Classification
Tonnes
Au (g/t)
Ag (g/t)
AuEq (g/t)
Au (oz)
Ag (oz)
AuEq (oz)
Measured
1,618,000
3.53
11.6
3.70
183,700
604,000
192,100
Indicated
3,696,000
3.61
22.7
3.92
428,900
2,697,000
466,100
Measured &
Indicated
5,314,000
3.59
19.3
3.85
612,600
3,301,000
658,200
Inferred
4,428,000
2.97
42.4
3.56
422,600
6,043,000
506,200
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, socio-political, marketing, or other relevant issues.
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 an Indicated or Measured Mineral Resource category.
The Mineral Resources were estimated using the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council December 11, 2005.
The mined tonnage from previous operations was removed from the block model.
Process costs used were $15/t and G&A was $5/t. Open pit mining was $3.50/t for ore and $2.75/t for waste with underground mining at $57/t. Open pit slopes were 50°.
The mined tonnage from previous operations was removed from the block model.
The current 2010 P&E Mineral Resource Estimate has defined Measured, Indicated and Inferred Resources for both gold and silver. In order to extend the resources, a 13,000 m program of drilling at the Rainbow-Dot and adjacent targets is recommended. A budget of $1.56 million is proposed for this program of drilling as well as an additional $150,000 for sample assaying.
In addition, an Induced Polarization ("IP") geophysical survey is recommended to further
investigate the continuation of mineralized zones along strike and to identify possible new zones to the south of the defined resources.
A Preliminary Economic Assessment ("PEA") or Scoping Study is recommended to be undertaken to examine the economic viability of both open pit and underground methods of mineral extraction as well as a metallurgical study.
A total budget for 2010 of $2.375 million, including a 5-6 % contingency, is proposed to include the PEA or scoping study, geophysics, drilling and sampling.
