TORONTO (miningweekly.com) – Timmins gold camp focused Lake Shore Gold on Friday said 2012 full-year production was on target, adding that it was positioned to sharply lift gold production during this year.
The company said that full-year 2012 production from its Timmins West mine totalled 85 782 oz from processing 719 298 t of ore at an average grade of 3.9 g/t, resulting 85 184 oz of gold poured, in line with the company’s guidance.
During the fourth quarter ended December 31, the company produced 23 738 oz, resulting in 24 041 oz of gold poured.
During the year Lake Shore completed critical mine development and expansion projects, increasing mining and milling capacity by 25% to 2 500 t/d, and the company expects to reach 3 000 t/d during second quarter.
Lake Shore said it expects strong production growth this year to between 120 000 oz and 135 000 oz of gold, at cash costs of between $800/oz and $875/oz, including royalties.
It has budgeted capital spending of about $80-million and exploration spending of $10-million. At the end of the quarter, the company had about $61-million in cash in the bank and bullion inventory.
"The progress we achieved in 2012 has positioned us for significantly higher production, reduced spending and improved cash operating costs in 2013,” Lake Shore Gold CEO Tony Makuch said.
The company’s stock rose 3.66% on the TSX on Friday afternoon to 85 Canadian cents apiece.
Edited by: Creamer Media Reporter