LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

Mining Cost Per Oz

[goldhappy]

My little chart shows mining costs a bit lower than LSG current costs. The main idea is to show people how quick the costs per oz drop when the grade moves up. I can't see LSG taking too long reaching 4.5 grams. The early production began. Don't be nervous about the early grades. A lot of new found low grade gold was discovered and processed during the development phase. It was somewhat unexpected. That caused a year long delay. We are in a sweet spot right now. It only has to be exploited. As heavy revenue flows and LSG gets in a great financial position we will all be winners. Now think hard about the new published assays and I hope you take away what I have been polishing up. Great exploration potential in the west end of Timmins. And now great production potential. Mining is Money !!!

Cost Per ounce varies according to grades mined
    Use $95 per ton for this example  
 3.5  grams = 8.88 tons per oz   $843.60
 4.5 grams  =  6.91 tons per oz  $656.45
 5.0 grams  =  6.22 tons per oz   $590.90
 5.5  grams =  5.65 tons per oz   $536.75

1 ounce of gold = 31.1 grams

$1600 gold / 31.1 = $51.44 per gram