www.lsgold.com
Lake Shore Gold Corp. is a mineral exploration company focused on the acquisition, exploration and development of mineral properties with prospects for hosting economic gold deposits in the Canadian Shield in Ontario and Québec. The Company holds a number of 100% owned and joint ventured gold properties in Ontario and Québec, acquired the Bell Creek Mine and Mill Complex and has commenced sinking a shaft on its 100%-owned Timmins West gold deposit near Timmins, Ontario. Lake Shore is a reporting issuer in British Columbia, Alberta, Manitoba, Ontario and Québec, and trades on the Toronto Stock Exchange under the symbol LSG.
Lake Shore Gold nearly triples resource at Gold River Trend, shares up 11%
Lake Shore Gold Corp. (TSE:LSG)(AMEX:LSG) saw its shares rise more than 11 percent Wednesday after it unveiled an updated NI 43-101 compliant resource at the Gold River Trend deposits on the west side of Timmins, which saw total ounces nearly triple and grades double.
Shares were up 10.6 percent Wednesday afternoon at $1.67 as of 2:46pm ET.
The new resource totals 117,400 ounces of gold grading 5.29 grams per tonne (g/t) in the indicated category, and 1.03 million ounces of gold grading 6.06 g/t in the inferred category.
Resources at the Gold River Trend are contained within two deposits, the East deposit and West deposit, both of which are located approximately 4.0 kilometres south of the producing Timmins West Mine shaft.
The deposits are contained within a 3.0 kilometre strike length and run along the Gold River Trend, a major alteration and deformation zone lying north of the Destor Porcupine Fault Zone (DPFZ).
New high-grade core at the East deposit between 400 and 800 metre levels contains 310,900 ounces at average grade of 9.81 g/t, an area that remains open at depth and along strike, the company said.
Its total resource base for the Timmins West Complex, which includes the Gold River mine and the Timmins West mine, increased to 1.24 million ounces grading 5.92 g/t in the indicated category, with 1.82 million ounces at 5.93 g/t in the inferred category.
Lake Shore said there is potential for additional resources from extensions and new discoveries, with definition and expansion drilling now in progress.
"We are extremely pleased to be announcing this updated resource estimate for Gold River Trend, which nearly triples the total ounces and doubles the average grade from the previous estimate," said president and CEO, Tony Makuch.
"With a 3.0 km strike length of the mineralization, the relative shallow depth of the resources and the zones remaining open in all directions, significant opportunity exists to continue to build the resource base along the Gold River Trend.
"With today's announcement, we have now added to our portfolio a fifth deposit containing more than a million ounces of gold and the third within our land position on the west side of Timmins."
The previous resource at the Gold River Trend was reported in 2002, and included approximately 400,000 ounces grading 3.0 g/t gold, all in the inferred category. Roughly two-thirds of the previously reported resource was located in the East deposit, with the remainder in the West deposit.
The bulk of the new resources are also contained within the East deposit, which covers a 1.5 kilometre strike length, with the remainder in the West, which is 500 metres to the west.
Over 70 percent of total resources are located within 400 metres of surface, the company added.
The new resource report includes 140 holes of new surface drilling, completed by Lake Shore Gold since February 2010 for a total of 55,816 metres. Drilling along strike and to depth between the two deposits is very limited, Lake Shore said, and both deposits are considered open.
