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

Timmins West technical report

[yoda2]

Hidden away in the new Timmins West Mine Reserve Technical Report, filed May 18, 2012, is an Economic Analysis(page 219).
It concludes, on page 221, with $1600 Au and US$/C$ parity, that:
the mine would have net revenue (after all costs and investments)(and without discounting)  of $343 million.  
With 410 million shares outstanding that works out to  83 cents per share.
Although the estimate does not incorporate the adjacent properties this valuation seems inconsistent with the perceived great potential of Timmins West mine underlying the past and even the current stock price.
Comments would be most helpful .

[basemetal]

The economic assessment you refer us to is for mining the "probable reserves" totaling ~4.9 M tonnes for both deposits.  The section numbered 25 (Interpretation and Conclusions) later says that the resource totals are 5.83 Mt for the West Timmins mine plus 2.88 Mt for Thunder CreeK. (my cursory observation only)

[basemetal]

I would like to amend my last posting.  Please delete "plus 2.88 for Thunder Creek".  On rereading i assume the 5.83 MT includes both deposits.

[yoda2]

It seems the technical report is based on the same probable resouces shown on LSG's april 19th, 2012 presentation of 4,922,000 tonnes. As such it would exclude both the indicated(904,000) and the inferred(4,272,000). Even allowing for the exclusion of these "not yet probable tonnages". the estimated net recover from the Timmins West, including Thunder Creek seems surprisingly low