Market cap...?LSG has the same market cap as SGR.... no production.. Maybe we sould ask Managment to shut down production and simply explore and prove up oz... Thus SGR is not consuming it's resource and won't have any expenditures on Labour force, consumables etc and proving profitabilty would be a non issue. This would leave the maximum amount of gold in the ground and the efforts of managment could be toward selling the assets and resources...
Just kiding!
Ticks one off though to see companies with no production trade at higher market cap than an actual producer with essentually the same amount of gold in the ground.
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Lake Shore increases mineral resource 78% at Timmins
2006-11-20 08:39 ET - News Release
Mr. Brian Booth reports
LAKE SHORE GOLD INCREASES THE INDICATED MINERAL RESOURCE TO 3.27 MILLION TONNES AT 12.29 GRAMS GOLD PER TONNE, UNCUT, AT TIMMINS WEST
Lake Shore Gold Corp. has recorded a 78-per-cent increase in the indicated mineral resource estimate at its 100-per-cent-owned Timmins West property to 1.29 million ounces gold (uncut), and an increase in the inferred mineral resource to 207,000 ounces gold (uncut), over the previous resource estimate in September, 2004.
Lake Shore president and chief executive officer Brian Booth said: "Timmins West continues to deliver consistent grades and continuity. These new ounces were added at a cost of just $12 per ounce, and the new indicated resource estimate averages 12.29 grams of gold per tonne. All of the zones remain open down plunge to the west. Our next step will be to complete the prefeasibility study and obtain an advanced underground exploration permit in 2007. In the meantime we will continue to explore the Main zone below the 650-metre level and the Vein zones below the 400-metre level to further expand the resources."
The current resource estimate follows the completion of the Timmins West resource expansion drill program and used a 1.5-metre minimum core length, a 3.0-gram-gold-per-tonne cut-off grade and a $500 (U.S.) long-term gold price assumption. The mineral resource estimate was audited by Watts Griffis and McOuat Limited, an independent, Toronto-based international geological and mining consulting firm.
INDICATED MINERAL RESOURCE
Gold (cut grade (1,2)) Gold (uncut grade (2))
Grams per Grams per
Zone Tonnes tonne Ounces tonne Ounces
Main/Vein zones 346,000 9.92 110,500 17.60 196,000
Footwall zones 1,185,000 7.27 277,000 7.57 288,000
Ultramafic zones 1,737,000 9.27 517,500 14.46 807,000
--------- ---- ------- ----- ---------
Total all zones 3,268,000 8.62 905,000 12.29 1,291,000
========= ==== ======= ===== =========
(1) Based on a 3.0-gram-gold-per-tonne minimum cut-off and 50-gram-gold-per-
tonne cap for the Ultramafic and Vein zones and a 30-gram-gold-per-tonne
cap for the Footwall zone.
(2) The company is presenting both uncut and cut figures as it is not
possible at this stage to determine which figure is more representative
of the mineralized zones on the Timmins West property.
INFERRED MINERAL RESOURCE
Gold (cut grade (1,2)) Gold (uncut grade (2))
Grams per Grams per
Zone Tonnes tonne Ounces tonne Ounces
Main/Vein zones 543,000 5.68 99,100 7.27 127,000
Footwall zones 340,000 5.95 65,000 6.27 69,000
Ultramafic zones 85,000 3.89 10,600 3.89 11,000
------- ---- ------- ---- -------
Total all zones 968,000 5.54 174,700 5.79 207,000
======= ==== ======= ==== =======
(1) Based on a 3.0-gram-gold-per-tonne minimum cut-off and 50-gram-gold-per-
tonne cap for the Ultramafic and Vein zones and a 30-gram-gold-per-tonne
cap for the Footwall zone.
(2) The company is presenting both uncut and cut figures as it is not
possible at this stage to determine which figure is more representative
of the mineralized zones on the Timmins West property.
A higher grade core, using a greater-than-six-gram-gold-per-tonne cut-off grade, within the indicated resource, is estimated to contain 1.16 million ounces gold from 2.29 million tonnes at 15.76 grams gold per tonne (uncut) or 775,000 ounces gold at 10.52 grams gold per tonne (cut).
The increase over the 2004 resource estimate is due largely to the continuity and consistency of grade of the Ultramafic and Footwall zones between the 800-metre and 1,200-metre levels. The Vein zones 1, 2 and 3 were not drilled during 2005-2006 and will be the focus of further resource expansion below the 400-metre level in 2007 along with continued drilling down plunge on the Main zone.
Quality control
Lake Shore Gold has implemented a quality control program to ensure best practice in the sampling and analysis of the drill core. Drill core is cut in half and sampled in standard intervals. All samples are transported in security-sealed bags and sent for analysis to ALS Chemex, which is an ISO 9002-2000 BSI registered laboratory. The other half of the core not submitted for assay remains stored in a secure location.
All samples from the most mineralized horizons are sampled in 0.5-metre intervals unless dictated by geological contacts. These samples are assayed using a pulp and metallics procedure. Pulp metallic assays are believed to be more representative of the true value of the mineralized interval, as the entire sample sent to the lab is processed in the assaying procedures. Drill core from zones of minor veining or mineralization is analyzed by 50-gram fire assay.
Standards and blanks were submitted every 25 samples and every 25th sample was reanalyzed by the lab. Approximately 5 per cent of all samples were reassayed by Accurassay in Thunder Bay, Ont., an ISO 9002-2000 BSI registered laboratory.
The resources disclosed in this news release have been estimated using definitions and guidelines that conform to National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.
The company's qualified person for Timmins West is Jacques Samson, PGeo. As the QP he has prepared or supervised the preparation of the scientific or technical information for the property.
We seek Safe Harbor.