Carlisle Goldfields Limited a Canadian based gold exploration and development company announce that, further to its press release dated February 26, 2009, Carlisle will be acquiring additional gold properties from Delta Uranium Inc. (”Delta”). This is pursuant to a proposed business combination (the “Transaction”) whereby Carlisle is to acquire all of the issued and outstanding securities of Delta Precious Metals (Ontario) Inc. (”Subco”), a wholly owned subsidiary of Delta. Carlisle is not required to pay further consideration for the additional gold properties. For complete details of the Transaction please refer to the aforementioned press release of February 26, 2009.
In this part of the transaction Delta has announced that Subco has entered into an option agreement dated April 16, 2009 (the “Option Agreement”) with Citabar Limited Partnership (”Citabar”) and Citadel Gold Mines Inc. (”Citadel”) whereby Subco will have an option to earn an undivided 60% interest (the “Option”) in certain patented and leased mineral claims located two kilometres East of Wawa, in the Province of Ontario (the “Wawa Claims”). This Option Agreement will form part of the consideration to be acquired by Carlisle pursuant to the Transaction.
The Wawa Claims
For the purposes of providing information relating to the Wawa Gold Property, Delta is relying on information provided to it by Citabar. All information pertaining to the Wawa Gold Property was derived from historical geological reports and does not presently conform to the standards as outlined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
The Wawa Gold Property encompasses 2,345 hectares in McMurray Township, between 2 and 10 kilometres southeast of the town of Wawa, Ontario. Over 95 percent of the property consists of leases and/or patents for both mineral and surface rights. Between 1902 and 1991, over 120,000 ounces of gold were produced from the property, in eight separate mining operations. The most important mineralized zone on the property is the Jubilee-Surluga zone, a large-tonnage, low-grade gold deposit. Attempts to selectively mine higher-grade sections within this low-grade zone were made in the 1950s, 1960s and 1980s, with limited success. A non 43-101 compliant historical resource estimate from 1997 is 525,000 ounces of gold with a grade of 1.75 grams per tonne gold (g/T Au) using a cutoff of 1.03 g/T Au, to a depth of 350 metres.
In 2007, Citabar carried out a program of surface diamond drilling to test the Jubilee-Surluga gold zone at depth. Three holes intersected significant gold values at depths between 500 and 600 metres:
DDH 07-393: 1.70 metres of 10.67 g/T Au
DDH 07-391: 3.30 metres of 11.43 g/T Au
DDH 07-389: 3.10 metres of 7.50 g/T Au
These intersections indicate that the Jubilee-Surluga zone appears to become narrower and higher-grade at depth, a configuration that has positive implications for the possible development of an underground-mineable resource below the near-surface lower grade portion of the deposit.
The Wawa property also includes claims held under option by Citadel and Citabar (the “Van Sickle Option”). Exploration on the Van Sickle Option in the 1990s resulted in the discovery of a number of high grade gold-bearing veins in trenches and shallow diamond drill holes. Individual surface grab samples assayed up to 325 g/T Au. Channel samples gave up to 129 g/T Au over 1.83 metres. Diamond drill holes gave up to 29.9 g/T Au over 2.5 metres and 758 g/T Au over 0.30 metres.
Before commencing additional diamond drilling on the Wawa property, Delta plans to compile the historical data on the property, including resampling selected parts of core from the approximately 90,000 metres that have been drilled to date. This compilation will allow the definition of a 43-101 compliant resource estimate for the Jubilee-Surluga zone, as well as 3-D modelling that will help guide further drill programs.
Carlisle will not be paying any additional consideration to Delta as it was always the intention of the parties to include the Option Agreement in the Transaction announced on February 26, 2009. Management of Carlisle and Delta is of the view that the true value of the Wawa Claims will be best developed by Carlisle.
Carl McGill, President and CEO of Carlisle Goldfields Limited states, “This phase of the transaction will allow Carlisle to add valuable gold assets to its holdings. It will furthermore move the Company forward in its plan to raise additional capital in the proposed business transaction with Delta, and with its ultimate objective of recommencement of production at the MacLellan Mine.”