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

Re. summer shhutdowns..Goldhappy..

[lorn]

Does Lakeshore have summer maintenance shutdowns like most all mining companies? and did Lakeshore have a shutdown this summer?

[goldhappy]

Lorn , you can be sure many LSG employees would be on summer holidays with there families. Scheduled maintenance and repairs would be the order of the day with outside contractors while employees are vacationing. Likely a good reason production may have been low in July/August.

[lorn]

Goldhappy, Yes, that why I mention summer shudowns, there could be many here who are not aware this occurs most times yearly and could well be the reason for low bar count. Other thing I always wonder about are critical spares.

[shawk]

Mining companies as a rule don't do summer shutdowns, employees vacations are staggered throughout the year. Maintenance shutdowns are done on a sheduled basis, when needed, such as when the ball and rod mill liners need to be replaced. Depending on the size of the mill, liners can be replaced in 24 to 48 hours, during this time a lot of other maintenance takes place such as replacing or

[bossu]

Good description of an ungoing  maintenance operation in a mine,So how to explain the reduction in the gold bars poured picture ..?Assuming a 3400 t/d production  they  are  surely milling lower grade and under 4.0 g/t on a voluntarily basis and we must see that as a temporary situation . The forecast production  number for the year is not at risk at this time.

[shawk]

Almost surely they've been running some lower grade ore. Keep in mind that it's inefficient to run a mill at less than maximum capacity, the operating costs are mostly fixed, whether your running at 100% or 85%. If an mill can't maintain a certain capacity say 75% then it could be better to shut down and stockpile ore until you can run at 100%, at least you can reduce power consumption

[bossu]

The gold bars pours for the last two months has been 36 bars or 24840 ounces. This is based on the last year average gold bar weigth of 690 oz/bar Assuming that they are operating at capacity or 3400 t/d  they had had a milling gade of 3.8 gr/t for the last two months .(3400 x 61 days x 3.8 gr/t x 96%) Even with the weaker output for the last two months LSG is still in a good position to