Gold miner up 56% on strong results

Stockhouse Canadian Small Micro-cap Stock Report for Monday, June 24, 2013 VANCOUVER (SHfn) -

Lake Shore Gold (TSX: T.LSG) soared 56% to 25 cents after the gold mining company said that it expects to report strong operating results when the company issues its second quarter 2013 production release in early July. Production for the second quarter is expected to total over 29,000 ounces at an average grade exceeding 4.0 grams per tonne. Quarter to date, mill throughput has averaged approximately 2,500 tonnes per day, gold produced is approximately 27,000 ounces and gold poured is over 25,000 ounces. Cash operating costs per ounce, to be released with the company's full financial and operating results in early August, are expected to show significant improvement from the first quarter of 2013. The company's mill expansion is nearing completion, with commissioning to commence in late July and the expanded processing capacity of 3,000 tonnes per day to be achieved by early September 2013.

Guerrero Exploration (TSX: V.GEX) rose 36% to 9.5 cents after exploration company announced that the complete drill permit application, including the long form of the environmental report (Manifiesto de Impacto Ambiental), was submitted to the Ministry of the Environment (SEMARNAT) for its Cerro Azul property in Guerrero, Mexico. The governmental authority confirmed receipt of the application and has indicated that all documents are in order and have initially been accepted, including the required newspaper publications of the company's and its joint venture partner's intentions to drill in the project area. Guerrero's environmental consultant on site has also indicated that a previously scheduled visit to the project area will no longer be required. Based on the response from the Mexican Ministry officials, Guerrero Exploration expects the finalized permit will be granted on or about June 30, 2013.


Fission Uranium Corp. (TSX: V.FCU) rose 6.3% to 68 cents after the uranium explorer provided gold assay results from the winter 2013 drill program at the Patterson Lake South (PLS) property, located on the Saskatchewan side of the Athabasca Basin. All three zones (R00E, R390E and R780E) had drill holes with strongly anomalous gold values. Although there is a strong correlation of uranium and gold mineralization, the high-grade gold found by the Fission team occurs frequently, but not always, in areas of higher-grade uranium mineralization. In addition, not all high-grade uranium intersections at PLS have anomalous high-grade gold values. Highlights of the drilling results include 20.5 metres grading 1.9 grams per tonne gold in zone R00E, 63.5 metres grading 1.58 grams per tonne gold in zone R390E and 7.0 metres grading 1.71 grams per tonne gold in zone R780E.

Donner Metals (TSX: V.DON) fell 20% to 10 cents after the exploration and development company reported that it had entered into an agreement with Secutor Capital Management Corp. and Marquest Capital Markets under which the underwriters have agreed to act as agents for a private placement for up to $3.0 million units in the capital of the company at a price of $0.10 per unit, and for up to $1.5 million of flow-through units of the company at a price of $0.115 per flow-through unit. The net proceeds from the units will be used by Donner to fund its share of the capital and operating expenditures at the Bracemac-McLeod Mine, for exploration expenditures at its projects in Québec, and for other general corporate and working capital purposes.