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 Q2 production up, shares rally
Lake Shore Gold Corp. (TSE:LSG) reported Wednesday that second-quarter gold production at its Timmins West mine "met or exceeded" quarterly targets and reiterated its full-year 2012 production outlook.
Shares in the company rallied almost eight per cent as at 2:00 pm ET, trading at $1.00.
For the second quarter, the company said it sold 24,915 ounces of gold at an average price of US$1,605 per ounce. That compares with 18,988 ounces at an average price of US$1,510 per ounce, a year ago.
Lake Shore processed 183,215 tonnes of ore with a grade of 4.3 grams per tonne and had a recovery rate of 96.8 per cent. The company produced 24,426 ounces of gold, up from 17,421 ounces in the same period last year.
The Canadian-based miner stood by its 2012 production outlook, saying it remains on track to achieve targets of 85,000 to 100,000 ounces of gold poured in 2012 and to exit year positioned for strong production growth in 2013.
It added that financial performance, including capital and operating costs, will be included in its second quarter and six month 2012 financial results to be released in early August.
"So far in 2012 we have met or exceeded our quarterly production targets and are well positioned to achieve our full-year guidance," said Lake Shore Gold's president and CEO Tony Makuch.
"The second quarter was a very solid production quarter with improved average grades, strong throughput levels and excellent mill recoveries.
"Equally important, with the progress we are making with our development program, we are setting ourselves up for strong production growth in both 2013 and 2014."
During the second quarter, Lake Shore said it made "significant progress" in managing its capital position.
Near the end of the quarter, the company completed its credit facility agreement with Sprott Resource Lending Partners, which includes a $35 million gold-linked loan and a $35 million stand-by line of credit.
With the credit facility, as well as existing cash resources and bullion inventory, Lake Shore said it is well funded with total capital resources of approximately $120 million.
On the exploration front, the company said it continued to report "excellent results" with the extension of the high-grade core at Gold River by 125 metres to depth and 120 metres to the west and the expansion of mineralization by 200 metres to the north, east and to depth at Fenn-Gib.
"Mineralization at both projects remains open and we have identified numerous additional targets at both locations, adding to their already significant exploration potential," Makuch added.
Lake Shore Gold is a gold mining company that is in production and pursuing growth through the exploration, development and operation of three wholly owned, multi-million ounce gold complexes in the Timmins Gold Camp.
The company is in commercial production at both the Timmins West and Bell Creek mines, with material being delivered for processing to the Bell Creek Mill.