another article to read...Lake Shore sees second 100-150K gold mine with new resources
Lake Shore Gold says it has found more than it expected to at Bell Creek and is planning to bring on line a second 100,000 ounce plus gold mine
Posted: Monday , 02 May 2011
Lake Shore Gold (TSX: LSG) grew two new resources at its Bell Creek project in Canada near Timmins, Ontario, as it eyes bringing on line a second 100,000-ounce-plus gold mine.
"It's fair to say we have found more than we expected at Bell Creek," Mark Utting, Lake Shore vice president of investor relations said.
Lake Shore added some 41 percent or 182,400 ounces gold to the measured and indicated categories at the previously undefined Vogel and Marhill deposits. Combined with resources at the nearby Bell Creek Mine deposit, resources at the Bell Creek project now stand at 4.4 million tonnes @ 3.06 g/t Au, measured and indicated, and 9.9 million tonnes inferred @ 4.28 g/t Au.
The expanding resources support Lake Shore's plan to develop a 2,500-tonne-per-day mine at Bell Creek that would churn out between 100,000 and 150,000 ounces gold a year over 15 or so years. While a production decision will depend on the outcome of a prefeasibility study of the Bell Creek project, Utting saw Bell Creek reaching commercial production in 2013.
Lake Shore President and CEO Tony Makuch also reasoned Bell Creek resources will continue to grow. "Considering our ongoing exploration program in this area and the considerable exploration potential still remaining to depth at all properties, we fully expect to add significant new resources to the solid base we have now established," he said in a statement.
If Bell Creek develops as planned, Lake Shore's gold output would likely double. Lake Shore, which only recently started up at its first gold mine - the Timmins Mine - forecasted in early March that gold production this year would come in at 125,000 ounces.
Utting said the Bell Creek prefeasibility study will be out this year.