From the LSG WEB Site DRIVING VALUE
LAKE SHORE GOLD IS WELL POSITIONED FOR VALUE CREATION GOING FORWARD
To increase value, Lake Shore Gold is focusing on completing significant capital development at its Timmins West Mine during 2012, which will position the Company for strong production growth beginning in 2013. According to the Preliminary Economic Assessment (“PEA”) for the Timmins West Mine, released on February 28, 2012, the Mine has the potential to produce 130,000 ounces of gold in 2013, which compares to a target of 85,000 to 100,000 ounces from all sources in 2012, and then reach its full average production level of 160,000 ounces in 2014. At full production, cash costs at Timmins West Mine are expected to be below US$600 per ounce. (The production numbers quoted for 2013 and 2014 do not include any assumed output from Bell Creek.)
What does all of this mean for investors?
By late this year, Lake Shore Gold will have spent a large part of the development capital for Timmins West Mine, largely de-risking the project and positioning the Company for several years of strong production growth entering 2013.
The charts below highlight the strong production and cost performance from Timmins West Mine expected to commence by late this year, according to the assumptions and estimates included in the PEA.
The Timmins West Mine will provide a strong foundation to pursue the development of the Company’s other projects, including Bell Creek, Fenn-Gib, Gold River Trend to name of few. Unlike some companies that need to seek acquisitions to achieve future growth, Lake Shore Gold has a full pipeline of highly prospective projects/properties in its portfolio today, which are all wholly owned. The timing for development of these projects is entirely under the Company’s control and will proceed in a manner that contributes the greatest value for shareholders.