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Mill Expansion
On August 9, 2011, the Company announced an expansion of the Bell Creek Mill to a capacity of 3,000 tonnes per day, with a second phase of expansion contemplated to a capacity of 5,500 tonnes per day. The first phase expansion is targeted for completion in the second half of 2012. The total cost of the expansion to 3,000 tonnes per day project is estimated at approximately $80 million, with $20 to $25 million to be spent in 2011. To the end of the third quarter, a total of $12.7 million had been spent on the expansion, mainly related to the acquisition of a SAG mill for $9.5 million. The 22' x 36.5' SAG mill was shipped from Europe to the Port of Thunder Bay and trucked to Timmins, arriving at Bell Creek Mill on November 1, 2011.
Drilling Program
The 2011 drill program has largely focused on establishing an initial resource at Thunder Creek during the fourth quarter, updating existing reserves and resources at Timmins Mine and resources at Bell Creek Mine and the Thorne property (Gold River Trend) by the end of the first quarter 2012, as well as releasing an initial resource at the Fenn-Gib project by the end of 2011. A total of 133,000 metres of drilling was completed in the nine months ended September 30, 2011.
Thunder Creek - On July 25, 2011, the Company announced drilling results confirming and extending mineralization above and below the 730 Level, extending the strike length of mineralization on the 730 Level by 25 metres to a minimum length of approximately 200 metres and including the discovery of a possible new zone 500 metres to the southwest of Thunder Creek towards 144.
Bell Creek - On August 16, 2011, the Company announced that drilling to depth had extended gold mineralization at Bell Creek Mine 400 metres below the current resource and intersected multiple occurrences of visible gold.
Thorne (Gold River Trend) - On August 30, 2011, the Company announced results from infill and expansion drilling, which included extending mineralization in the North Porphyry/4800 Zone at Gold River East by 450 metres below the current resource (840 metres below surface) and extending mineralization by 300 metres east of the current resource.
Fenn-Gib -Subsequent to quarter end, on October 28, drilling in an untested gap confirmed the geologic model, highlighted potential at depth and discovered a 200 metre expansion of shallow mineralization to the north of previous drilling. In addition, three twin holes were completed in the central to eastern portion of the deposit with all three holes obtaining grades and widths similar to or better than previous nearby holes.
Statements about the Company's outlook are forward looking and are subject to the caution below. More information about Lake Shore Gold's financial and operating results and financial condition and liquidity for the third quarter and first nine months of 2011 is available in the Company's consolidated financial statements and management's discussion and analysis, which are available on sedar at www.sedar.com and are posted to the Company's website at www.lsgold.com.
Lake Shore Gold will also host a conference call and webcast on Thursday, November 10, 2011 at 10:00 am EST to discuss the Company's third quarter and first nine month 2011 financial and operating results. Those wishing to access the call can do so using the telephone numbers that follow. The call will also be webcast and available on the Company's website.
Participant call-in: 416-695-6616 or 800-355-4959
Replay number: 905-694-9451 or 800-408-3053
Re-dial ID: 5561037
Available until: 11:59 pm, November 24, 2011
About Lake Shore Gold
Lake Shore Gold is a rapidly growing mining company with a vision to become a mid-tier gold producer through the successful exploration, development and operation of its properties in the Abitibi Greenstone belt in Northern Ontario and Quebec, starting with its strong base in Timmins, Ontario. In Timmins, the Company is in commercial production at the Timmins Mine, has intersected underground, and is developing along, mineralization at the adjacent Thunder Creek deposit and is advancing an underground advanced exploration program at its Bell Creek Mine. Mine production is delivered to the Company's wholly owned mill (located on the Bell Creek Property east of Timmins) which has been refurbished and expanded to a current capacity of 2,000 tonnes per day. The Company continues to invest aggressively in exploration in the Timmins Camp and in its other properties in Northern Ontario and Quebec. The Company's common shares trade on the TSX and NYSE Amex under the symbol LSG.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release relating to the Company's expected production levels, production growth, exploration activities, potential for increasing resources, project expenditures and business plans are " forward-looking='statements.' _parent=' href='>/www.sedar.com/">www.sedar.com, or the Company's most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.
(i) Denotes non-GAAP (Generally Accepted Accounted Principles) measures.
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