Lake Shore Gold (TSE:LSG)(NYSE MKT:LSG) says it has confirmed the presence of wide, high grade gold mineralization within 770 metres of the Thunder Creek deposit at its Timmins West mine in Ontario, with the unveiling of new drill results from its 144 property.
The 144 property is just southwest of the Timmins West mine's Thunder Creek deposit, and covers about 4 km of the same sedimentary contact that hosts both the Thunder Creek and Timmins deposits.
The asset has three main target areas, with the company's new 10,000 metre surface drilling program, which launched in August, initially targeting the 144 Gap.
The company revealed today the results from the first hole of the program, which intersected 5.37 grams per tonne (g/t) gold over 46 metres, including 21.87 g/t gold over 6.0 metres and 12.54 g/t gold over 4.4 metres.
The 144 property was first discovered by Lake Shore during a 2012 drilling program, the company said. The area remains open for expansion both along strike and to depth, it added.
Because the asset is so close to the Timmins West mine, the zone can be accessed with existing mine infrastructure at Thunder Creek.
"Since our last program at 144 in 2012, we have continued to study and access the area and feel we have a very good understanding of the geology and exploration potential of 144," said president and chief executive officer, Tony Makuch.
"The property shares the same geological structure as both the Timmins Deposit and Thunder Creek and, with continued exploration success, could effectively transform Timmins West Mine from an operation with two deposits, to a mining complex with multiple deposits over a long mineralized trend."
The gold miner, which operates three gold complexes in the Timmins Gold Camp of Ontario, said that while it is still early days at 144, the target is a high priority, and the company has decided to add a third drill in order to accelerate its evaluation.
Lake Share Gold is forecasting production of 160,000 to 180,000 ounces of gold in 2014. For the first nine months of the year, output increased 72 percent from the same period of 2013.
Shares rose 1.9 percent to C$1.06 in Toronto on Tuesday as of 11:40am ET.