Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

November 05, 2009 17:33 ET

Lake Shore Gold Confirms Presence of Large New Gold System at Bell Creek, Extending at Depth

- BC-09-53A intersects 5.13 grams per tonne ("gpt") gold ("Au") over 26.40 metres ("m"), including 9.75 gpt over 5.60 m and 12.80 gpt over 1.50 m, 45 m above previously released BC-09-53 (12.67 gpt over 14.40 metres). - BC-09-63 and BC-08-09C confirm continuity of high grade mineralization in untested area between 575 and 1,000 m below surface and open to depth. - Newly received assays for BC-09-53 and BC-09-24F indicate potential for additional zones in footwall. - Confirmation of gold system supports the Company's belief that significant new resource ounces can be identified at the property.

TORONTO, ONTARIO--(Marketwire - Nov. 5, 2009) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from 14 new holes and 3 wedge holes (6,181 m) at the Company's 100% owned Bell Creek property. The most significant results being reported are from wedge hole BC-09-53A, which intersected 5.13 gpt Au over 26.40 m, including higher grade zones of 9.75 gpt over 5.60 m and 12.80 gpt over 1.50 m, and 8.19 gpt Au over 1.80 m.

BC-09-53A intersected mineralization approximately 940 m below surface and 45 m above previously announced BC-09-53, which returned 12.67 gpt over 14.40 m (see press release dated October 1, 2009) and 75 m west of BC-09-24B, which returned 12.63 gpt over 11.65 m (see press release dated July 21, 2009). The results of BC-09-53A, together with the earlier intercepts, provide confirmation of the presence of a large gold system at depth at Bell Creek and support the Company's belief that there is potential to identify significant new resource ounces at the property.

Among other results, BC-08-63 intersected 5.61 gpt Au over 7.10 m and BC-08-09C intersected 7.67 gpt Au over 3.60 m and 5.94 gpt Au over 5.80 m in a key gap of the projected shallow east plunging system below the Bell Creek mine. These holes confirm the continuity of high grade mineralization between 575 m and 1,000 m below surface where there was a large gap between drill intersects.

In addition to new holes being reported, newly received assays from previously released BC-09-24F include 5.55 gpt Au over 3.0 m and 11.25 gpt Au over 1.00 m and from BC-09-53 include 5.20 gpt Au over 1.05 m and 4.99 gpt Au over 2.00 m. These new intercepts suggest the potential for additional zones on the footwall near the new deep intersections which could increase the average width of mineralization on any particular elevation below 525 metres to levels well beyond the historic mining widths of 1.5 to 2.0 metres.

Mineralization in holes BC-09-53A, BC-08-63 and BC08-09C all occur near a steeply south dipping contact between mafic and ultramafic volcanic rocks west of the Bell Creek fault and have a strong resemblance to that indicated by holes BC-09-24B and BC-09-53, including strong hydrothermal alteration, quartz veining and 5-15% pyrite.

Although detailed interpretations are still in progress, the observations to date indicate a continuous mineralized structure following the mafic - ultramafic contact between the 500 m and 1,000 m levels from surface which contains a series of branching structures. One of the more prominent branch structures appears to correlate with the down dip projection of the North A horizon and merge with the ultramafic contact between 965 and 1,000 m below surface near the location of BC-09-53 and BC-09-24B, producing the best new intercepts to date. The system is open to depth and along strike.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "We continue to expand the resource potential to depth and to the east at Bell Creek and to confirm the presence of a large gold system on the property. With the holes being announced today, we have extended the mineralization to a total plunge length of approximately 1,250 m and have defined a continuous high-grade mineralized system starting near the 575 m level and extending to depth. Drilling continues to demonstrate excellent grades and widths with the mineralized system at depth remaining open both at depth and along strike. We remain very encouraged with exploration results at Bell Creek and continue to operate six drills on the property."

Hole S-09-06C intersected mineralization near the ultramafic contact 150 m east and 130 m vertically below previously released BC-09-24B and returned 4.26 gpt Au over 1.70 m (including 8.70 gpt over 0.60 m). This intersection, though narrower in width, illustrates the continuity of the gold system to the east.

Holes BC-09-41 and BC-09-58 were completed as part of a delineation drill program to test the Bell Creek North A Zone at close to 50 m centres. These holes successfully pierced the North A Zone with intersections that include 5.68 gpt Au over 1.20 m and 9.49 gpt Au over 1.90 m (including 16.40 gpt over 0.60 m).

Holes BC-09-35 and BC-09-45 were completed to test the westerly strike extension of the North A and West zones. BC-09-35 intersected 6.06 gpt Au over 1.00 m in the North A vein and BC-09-045 intersected 8.83 gpt over 0.80 m in the W3F vein in the West Zone in areas very close to surface and to current mine workings.

In addition to current surface drilling, the Company is proceeding with advanced underground exploration activities to dewater the mine workings and develop a ramp to depth and towards the Vogel property. Dewatering is currently down to 240 m from surface and the ramp has advanced to a vertical depth of 90 m.

Mr. Makuch added: "The success we are achieving at Bell Creek supports our strong belief in the excellent potential of the New Mine Trend, which in addition to the Bell Creek Complex hosts such projects as the Porcupine Gold Mines Joint Venture's Hoyle Pond and Pamour mine operations. Based on this belief, we recently announced an agreement with Goldcorp to acquire 28 square kilometers of prospective property in the vicinity of the Bell Creek Complex, ranging from the previously producing Marlhill Mine to a number of early stage exploration targets, all with significant potential. Once this transaction closes, expected in December, we will have a significant land position along the New Mine Trend, anchored by Bell Creek, which collectively we expect to develop into Lake Shore Gold's second major mining complex in the Timmins camp in addition to our Timmins West Gold Mine Complex."

Quality Control

The Company's Qualified Persons ("QPs") for the Bell Creek property are Stephen Conquer, P.Geo. and Richard Labine, P.Geo. As QPs, they have prepared or supervised the preparation of the scientific or technical information for the property and verified the data disclosed in this press release.

Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. Assays have been completed using a standard fire assay with a 30g aliquot and an AA finish. Samples with assay results above 3.0 gpt are re-analyzed using a gravimetric finish. Any intervals showing visible gold ("VG") as well as select intersections, based upon visual inspection of the core, are analyzed using the pulp metallic method. NQ size drill core is saw cut, and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core is transported in security-sealed bags to ALS Chemex.

About Lake Shore Gold Corp.

Lake Shore Gold is a growing mining company that is moving towards commercial gold production through its 100%-owned Timmins Mine project, where the Company is sinking a shaft and driving a ramp. The wholly owned Bell Creek Mill, located on the east side of Timmins, has been refurbished to a capacity of 1,500 tonnes per day. The Company is also making progress with an underground advanced exploration program at its Bell Creek Complex, including the Bell Creek Mine, Schumacher and Vogel properties, which have the potential to become the Company's second mining project in the Timmins Camp. In addition, Lake Shore Gold is pursuing a number of other highly prospective exploration properties in Northern Ontario and Quebec. The Company's common shares trade on the TSX under the symbol LSG.

On November 4, 2009, shareholders of West Timmins Mining Inc. ("West Timmins Mining") approved a Business Combination Agreement with Lake Shore Gold under which the Company is acquiring all outstanding shares of West Timmins Mining at an exchange ratio of 0.73 of a Lake Shore Gold share for every West Timmins Mining common share. With the successful completion of the transaction, expected on or about Friday, November 6, 2009, Lake Shore Gold will acquire the 40% of Thunder Creek not currently owned and approximately 120 square kilometers of highly prospective property in close proximity to Thunder Creek, as well as a significant land position in Mexico.

Forward-looking Statements

Certain statements in this press release relating to the Company's exploration activities, project expenditures and business plans are "forward-looking statements" within the meaning of securities legislation. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will not be less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Lake Shore Gold's most recent Annual Information Form and other regulatory filings which are posted on sedar at www.sedar.com.

There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource.



Bell Creek Property - Significant New Assay Results
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Hole From To Length Assay Target Comments
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Number (m) (m) (m) (gpt) Zone
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BC-08-09C 908.20 911.80 3.60 7.67 BC West Zone VG @ 909.3 m
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915.00 916.00 1.00 6.82 BC West Zone
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973.60 979.40 5.80 5.94 unnamed
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includes 973.60 976.60 3.00 9.15 "
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BC-09-24F 1,141.80 1,144.80 3.00 5.55 unnamed
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includes 1,141.80 1,142.80 1.00 11.25 "
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BC-09-35 135.45 136.45 1.00 6.60 North A
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BC-09-41 403.60 404.50 0.90 13.05 East Vein
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418.10 418.90 0.80 4.36 East Vein
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500.30 501.50 1.20 5.68 North A
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517.90 519.00 1.10 3.14 North B
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524.00 524.40 0.40 5.97 "
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BC-09-45 120.70 121.50 0.80 8.83 W10F
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BC-09-53 1,172.25 1,173.30 1.05 5.20 unnamed
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1,176.85 1,177.70 0.85 8.55 "
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1,181.70 1,183.75 2.05 4.43 "
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1,202.50 1,205.00 2.50 4.53 "
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1,236.40 1,238.40 2.00 4.99 "
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BC-09-53A 1,114.40 1,116.20 1.80 8.19 unnamed
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includes 1,115.20 1,116.20 1.00 11.50 "
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1,130.90 1,133.10 2.20 3.80 "
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1,163.50 1,189.90 26.40 5.13 BC West Zone
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includes 1,163.50 1,169.10 5.60 9.75 " VG @ 1,166.9 m
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VG @ 1,170.9 m &
and 1,174.40 1,178.90 4.50 7.38 " 1,178.0 m
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and 1,188.40 1,189.90 1.50 12.80 "
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1,202.10 1,203.00 0.90 7.31 unnamed
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BC-09-58 668.70 670.60 1.90 9.49 North A
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includes 670.00 670.60 0.60 16.40 "
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BC-09-63 782.60 787.10 4.50 1.69 E7F
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832.30 839.40 7.10 5.61 North A
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includes 835.50 839.40 3.90 7.25 "
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S-09-06C 1,223.90 1,225.60 1.70 4.26 BC West Zone
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includes 1,225.00 1,225.60 0.60 8.70 "
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Note 1: Results from holes BC-09-24F and BC-09-53 are in addition to
previously reported assays.
Note 2: Holes BC-09-39, BC-09-40, BC-09-46 did not return any significant
assays.
Note 3: BC-08-09C was wedged off of BC-08-09B @ 475 m.
Note 4: BC-09-53A was wedged off of BC-09-53 @ 690 m.
Note 5: S-09-06C was wedged off of S-09-06A @ 520 m.
Note 6: Holes BC-09-54, BC-09-56, BC-09-57, BC-09-59, BC-09-60 and BC-09-62
were stopped early due to excess deviation.
Note 7: True widths are not known at this time.
Note 8: Assays are reported uncut.


To view the Figure 1 (Plan View), please visit the following link: http://media3.marketwire.com/docs/Figure1pv.pdf.

To view the Figure 2 (Long Section), please visit the following link: http://media3.marketwire.com/docs/Figure2lsg.pdf.

To view the Figure 3 (Cross Section 1), please visit the following link: http://media3.marketwire.com/docs/Figure3cs.pdf.

To view the Figure 4 (Cross Section 2), please visit the following link: http://media3.marketwire.com/docs/Figure4cs2.pdf.

Contact Information

  • Lake Shore Gold
    Tony Makuch
    President & CEO
    (416) 703-6298
    or
    Lake Shore Gold
    Mark Utting
    Vice-President, Investor Relations
    (416) 703-6298
    info@lsgold.com
    www.lsgold.com