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

Grade

[goldhappy]

Mining blocks are taken in a ground controlled sequence. It is very important to take care of the stresses throughout an orebody. This helps prevent ground bursts and severe unraveling of the foot and hanging walls. Scheduled and budget tonnage and mine grades are based on the Engineers mining sequence.When a bulk mining block runs empty it goes on a filling cycle. In high stress areas the empty stope must be filled before the blasting starts on another stope. If the next stope to open up is of a higher grade the filling cycle must run without delays or the mine scheduled grade will suffer. Mining is riddled with problems. Any delay of the higher grade muck will bring down the grade. Usually a catch up period begins later when the higher grade stope is brought on stream. Very common.

It sounds to me like they are tightening up the drill pattern. If the diamond drill holes are spaced too far apart a realistic grade is skewed. Drilling between the wide spaced holes adds more confidence to the block grade. Extra diamond drill holes are much cheaper than opening up mining blocks with dilution surprises.

Having spare blocks ready to go is risky because the production holes often squeeze and block off the ability to load powder. The risk is essential to avoid production delays. It's the managers call. That is where experience is needed. Computers can't answer the call. Lots of growing pains. Better to schedule and budget low and over deliver. I believe that is now the LSG strategy. GOOD !!!

[idlefreebird]

Veryy true goldhappy and well put. The boy's are getting things done and within time we will be rewarded.The part about not overpromissing witch I find they are doing is the year of 2014. Tony mentions a couple of time that Timmins West will supply the 3,000 tpd starting in 2014 , therefore that leaves us with what do we do with that low cost under the mill feed from Bell Creek. Bell Creek

[goldhappy]

Your bang on idlefreebird. They bought equipment to upgrade the mill to +5000 tpd. LSG ran a muck when the cash ran out. Golfcar predicted the cash flow problem. It appears the plan to conserve cash is working in everyones favour. The current project is polishing up rather nicely. The upgrade to 3000 tpd will generate the required capital to expand the mill to

[bosse]

Goldhappy, You have a very good interpretation of what is going on down the mining area and your saying about  the fact that it is better to have EXTRA diamond drill holes which are cheaper and improve the overall grade af a block they decide to extract. And your explanation bring tthe light of what Tony was saying at the webcast conference.We just have to add these 3 short

[idlefreebird]

Yes , I like the Fenn Gibb project as the pit lines are getting deeper with good grades. They have a nice resource there and haven't included the last results witch will increase that dramaticaly. They have 15 other holes outline on the page with yellow dots that will be infill that will be the final touch . I believe that  resource will easily be between 4-5 million onces.This is looking

[yoda2]

It would seem that the main message is "while the ore body is good, It is not as good as we thought it was and not as good as we told the investment community.  To minimze the resulting unexpected grade variations we need to drill more holes so that we can mine more selectively and mix the differing grades mined to achieve a more consistent average ore grade. We must strive to deliver

[Timminsgold]

The average  grade will prove up as suggested in the 43 101. . Management must be pressured to stop processing "development grade ore". One day during October the average mill head grade exceeded 8g/t.

[bosse]

Timminsgold, I d'ont know where you took that information about ''ONE''day in October...mill grade exceeded 8 g/t Difficult to see how they can proceed just ''ONE''day at that level. But as you say, they need now to deliver bette grade result  Much of the questioning in the webcast conference was about grade meaning that everybody is anxious about that