New update at www.goldsilverdata.comCarlisle Goldfields is a highly undervalued company with a lot of potential. They have found 4.5 million oz of gold (1.5 gpt) at their large (70,000 acres) Lynn Lake property in Manitoba. And estimate they will find at least 6 million oz. Lynn Lake has five deposits. The MacLellan deposit is 2.2 million oz at 1.7 gpt and will get a PFS (pre-feasibility study) in 2014. It will be the first mine. Then they have four other deposits to expand. Linkwood (800,000 oz at 1 gpt), Burnt Timber (800,000 oz at 1 gpt), Last Hope, and Farley Lake. There is a very good chance these five deposits (surface mines) will produce at least 3 million oz.
There are three red flags for this stock. It is highly diluted at 338 million shares. Second, production will not begin until around 2017. And third, they still need to obtain financing. If they can get financing without destroying too much value, this could be an excellent long term investment. This is a potential 50 bagger from their low $15 million FD market cap. The infrastructure at Lynn Lake is excellent and permitting should be easy because this is a past producing mine in Canada.
PEA in 2013:
$275 Million capex
175,000 avg production for 13 years
1.9 gpt
$700 cash costs per oz
Pre-tax IRR of 34% at $1300 gold
90% recovery rate
Stocks this solid tend to always get taken over for a small premium and shareholders get small returns. But I think you have to buy it at this cheap value just in case they become a producer. Buy extra shares in case they do a 10 for 1 reverse split. That way if they do an reverse split it won’t feel like they were burning shares.