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

Lakeshore in a nutshell!!!

[dogwag]

Lakeshore gold originally was supposed to have a grade of 8 gpt from its inception but that was before they acually got down there and started mining.They now know what they have much more than just drill hoples from surface.When Lakeshore started they were going to mine higher grade areas about 10 meters in width but because of the gold found in more of a layer system and not throughout all the rock,they are taking up to 30 to 40 meter wide stopes and this is what is diluting the grades.You can,t just leave 3 GPT ore in the ground but because of the layered type of ore body you are taking out waste rock mixed in with the higher 7-8 GPT ore and comming up with 3.8 to 4 GPT ore.It is a far more difficult ore body to mine than first anticipated and will never yield 8 GPT ore but can get to 4.5 to 5 GPT with a little fine tunning and understanding the layered system ore body better.Now that being said if gold can maintain about $1600.00 an ounce and Lakeshore can get and average of 4,5 to 5 GPT,they will make very good profits.The mill may take a little longer to get to 3000 tonnes per day(August   2013) but that,s O.K.It may be a short term delay but they will save 35% on the cost of the upgrade as overtime and overcharging are costing too much.A freind of mine works there and he said they have even stopped all the overtime in the mine itself which is very prudent by Tony.He does not want to miss timelines but he does not want to keep wasting money anymore as it is getting harder to come by in the mining industry.The price of gold is down (for a short period) and this has forced mining companies to reign in costs which is a good smart and prudent thing to do for all shareholders of the company.LSG will be fine but it may be a while before they are firing on ALL cylinders but are worth more than .39 cents per share,but all the juniors are getting killed right now.This is LSG in a nutshell.Comments welcome!!