Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

October 23, 2008 18:01 ET

Lake Shore Gold Discovers New Gold Zone at Casa Berardi

TORONTO, ONTARIO--(Marketwire - Oct. 23, 2008) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from Phase 1 of its 2008 drill program at the Casa Berardi optioned property in north-western Quebec. The results of the program, which involved a total of 12 diamond drill holes, included the discovery of a new gold zone, with the best intercept being 13.03 grams per tonne gold over 6.45 metres within a broader intersection of 8.58 grams per tonne gold over 10.4 metres ("Hole CE-08-03"). Hole CE-08-03 is the deepest mineralized intersection at a vertical depth of 247 metres and is located approximately 90 metres below a historic intercept of 11.11 grams per tonne gold over 2.24 metres. The new intercept is open both at depth and laterally.



Highlights: (CE-08-03) 319.10 -- 329.50: 8.58 Au g/t over 10.4 metres
Including 321.90 -- 328.35: 13.03 Au g/t over 6.45 metres
Including 326.90 -- 327.55: 51.33 Au g/t over 0.65 metres

(CE-08-07) 253.60 -- 256.00: 8.64 Au g/t over 2.4 metres
Including 254.40 -- 255.45: 28.82 Au g/t over 0.65 metres

(CE-08-11) 297.15 -- 300.25: 6.84 Au g/t over 3.1 metres
Including 298.00 -- 298.30: 13.80 Au g/t over 0.3 metres


Lake Shore Gold is currently earning a 50% interest in the Casa Berardi optioned property through a joint venture agreement, reached in 2007, with Aurizon Mines Ltd. ("Aurizon") by spending $5.0 million over five years with a firm commitment of $600,000 in the first year. The first year commitment was met during the first quarter of 2008. The Company is the operator during the earn-in period. The optioned property lies to the east and west of Aurizon's wholly owned Casa Berardi mining operations, including the West Mining Complex and East Mine and Mill Complex.

The new zone lies to the east of Aurizon's mining operations, and covers a total strike length of more than 500 metres from west to east. Included within the new zone are three high-potential sub-zones (G-S Zone, G-Mid Zone and the G-N Zone), which trend approximately 260 degrees azimuth and dip moderately south (i.e. 60-75 degrees). Better mineralization displayed increased wall rock alteration and increased sulphides, with some quartz and sulphide stringers at a shallow angle to the core axis, an occurrence also noted at Aurizon's Casa Berardi mines.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "We are very encouraged by the results of the first 12 holes at Casa Berardi, which indicate an extensive mineralized package, with several sub-parallel gold-bearing vein and sulphide zones within the main area of the drill program. We are preparing to launch a second phase of the drill program as soon as the winter weather returns and winter roads can be established as part of our ongoing exploration program."



----------------------------------------------------------------------------
HOLE Core Length Gold
NUMBER From (m) To (m) (m) (grams/ Zone
Tonne)
----------------------------------------------------------------------------
CE-08-01 197.30 198.85 1.55 3.35 G-S Zone with visible
gold in 2 of 3 samples
----------------------------------------------------------------------------

292.20 295.00 2.80 4.22 (G-N) stringers in fold
----------------------------------------------------------------------------
Incl 292.20 292.70 0.50 14.13 Increased stringers
----------------------------------------------------------------------------
CE-08-02 120.20 121.80 1.60 1.03 G-Mid related stringers
----------------------------------------------------------------------------
149.50 151.40 1.90 1.20 G-N Zone
----------------------------------------------------------------------------
153.50 155.40 2.10 1.64 G-N Zone
related stringers
----------------------------------------------------------------------------
383.00 384.75 1.75 1.30 Minor stringers
& pyrite
----------------------------------------------------------------------------
CE-08-03 319.10 329.50 10.40 8.58 G-N Zone
----------------------------------------------------------------------------
Incl 321.90 328.35 6.45 13.03 G-N Zone
----------------------------------------------------------------------------
Incl 326.90 327.55 0.65 51.33 Highest gold assay
----------------------------------------------------------------------------
CE-08-04 No material values
----------------------------------------------------------------------------
CE-08-05 107.00 108.80 1.80 1.44 G-Mid Zone
----------------------------------------------------------------------------
154.00 157.35 3.35 4.14 G-N Zone
----------------------------------------------------------------------------
Incl 155.65 157.35 1.70 6.79 G-N Zone
----------------------------------------------------------------------------
Incl 156.75 157.35 0.60 12.52
----------------------------------------------------------------------------
158.85 160.65 1.80 1.05
----------------------------------------------------------------------------
CE-08-06 No material values Approximately 2km
west of 2008 main
drill area
----------------------------------------------------------------------------
CE-08-07 253.60 256.00 2.40 8.64 G-N Zone
----------------------------------------------------------------------------
Incl 254.40 255.45 0.65 28.82
----------------------------------------------------------------------------
291.00 293.05 2.05 1.19 Breccia vein
(another G-N)
----------------------------------------------------------------------------
Incl 291.85 292.30 0.45 4.87
----------------------------------------------------------------------------
CE-08-08 196.95 198.70 1.75 1.84 G-Mid Zone
----------------------------------------------------------------------------
207.30 209.35 2.05 2.63 G-Mid Zone
----------------------------------------------------------------------------
Incl 207.30 208.10 0.80 5.90
----------------------------------------------------------------------------
CE-08-09 No material values Approximately 2km
west of 2008 main
drill area
----------------------------------------------------------------------------
CE-08-10 74.60 76.30 1.70 3.61 G-S Zone
----------------------------------------------------------------------------
Incl 74.60 75.00 0.40 13.85 Veining with heavy
pyrite
----------------------------------------------------------------------------
118.00 120.55 2.55 1.00 G-Mid Zone
----------------------------------------------------------------------------
150.85 152.50 1.65 4.58 G-N Zone
----------------------------------------------------------------------------
Incl 151.30 152.00 0.70 8.69
----------------------------------------------------------------------------
CE-08-11 290.35 292.10 1.75 1.55 G-Mid Zone
----------------------------------------------------------------------------
293.80 295.50 1.70 1.81 G-Mid Zone
----------------------------------------------------------------------------
297.15 300.25 3.10 6.84 G-Mid Zone
----------------------------------------------------------------------------
Incl 298.00 298.30 0.30 13.80 Increased pyrrhotite
----------------------------------------------------------------------------
316.90 320.60 3.70 1.97 G-N Zone
----------------------------------------------------------------------------
Based on the assumed azimuth of 260 degrees and south dip of 60-70 degrees,
the true thickness of the zones is estimated to be in the order of 75-85% of
intersection thickness.


The 12 diamond drill holes covered 4,470 metres and were directed at a 14.5 kilometer block of claims located contiguous to the east of Aurizon's existing Casa Berardi mining operations. The program was designed to investigate areas of interest detected by previous operators. Lake Shore Gold also has under option from Aurizon a 15 kilometer length block of claims located contiguous to the west of the Casa Berardi mining operations. The western block is also contiguous with the Burntbush property and along strike of the Blakelock property, both located in Ontario and covering 60 kilometers of strike and 100%-owned by Lake Shore Gold.

The main area of drilling comprised ten holes centered 7.5 kilometers east north-east of Aurizon's Casa Berardi East Mine and Mill Complex. Holes were drilled north along sections approximately 100-metres apart with one to two holes per section. Two additional holes were drilled two kilometers to the west of this area. In addition, 79 reverse circulation ("RC") holes were simultaneously completed over the eastern claim block.

Mineralization encountered by Lake Shore Gold occurs within sediments located north of a mafic volcanic package. Gold is associated with quartz-carbonate veining and sulphides. Better mineralization displays sericite alteration and occasionally albitization and the presence of increased sulphides including pyrite, pyrrhotite and especially arsenopyrite.

The 79-hole RC drill program was designed to both define new targets by testing new areas as well as following up on areas of interest detected through the compilation of previous data. In addition, 173 bed rock samples were collected during the RC program with samples analyzed for gold by a FA-AA method and a trace multi-element ICP analytical method.

Two LSG interpreted gold dispersal trains were determined to occur near the northern mafic volcanic-sediment contact east of the Theo River. The first gold train comprises three holes and occurs south of the Company's western diamond drill holes CE-08-06 and CE-08-09. The second gold train occurs east of Lac Germain and 5.1 kilometers along trend and east of the main 2008 diamond drill program conducted by Lake Shore Gold. Both gold dispersal trains offer new drill targets near the northern volcanic-sedimentary boundary.

Quality Control

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 an atomic absorption finish on a 30 gram aliquot. Samples returning greater than one gram per tonne were re-analyzed by a fire assay - gravimetric finish on a 50 gram aliquot. Samples containing visible gold or returning greater than 5.00 grams per tonne were re-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 Laboratoire Expert Inc, Rouyn-Noranda, Quebec.

The Company has retained the services of William Waychison, P.Geo., as the Qualified Person ("QP") for Lake Shore Gold's Casa Berardi optioned property. As QP he has prepared or supervised the preparation of the scientific or technical information for the property.

About Lake Shore Gold

Lake Shore Gold Corp. is a mineral development and exploration company that is rapidly moving towards gold production through a portfolio which includes an existing processing facility and a number of quality mineral properties located in the Timmins gold mining district of northern Ontario and Quebec. The Company is moving forward with an advanced exploration program at its 100%-owned Timmins West property, and is also driving a ramp that is expected to lead to first gold production from Timmins West by early in 2009; is progressing refurbishing work at its 100%-owned Bell Creek mill; and is continuing drilling programs at a number of other prospective properties. The Company's common shares trade on the Toronto Stock Exchange under the symbol LSG.

Forward-looking Statements

Certain statements in this press release relating to exploration work at the Casa Berardi optioned property 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 demand for products develops as anticipated, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or materials or supplies. 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 Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. 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 regulatory filings which are posted on sedar at www.sedar.com.

To view a map of Figure 1 please visit the following link:

http://media3.marketwire.com/docs/Figure_1._Location_Map.jpg

To view a map of Figure 2 please visit the following link:

http://media3.marketwire.com/docs/Figure_2._Diamond_Drilling_Map.jpg

To view a map of Figure 3 please visit the following link:

http://media3.marketwire.com/docs/Figure_3._Diamond_Drilling_Main_Area_Map.jpg

To view a map of Figure 4 please visit the following link:

http://media3.marketwire.com/docs/Figure_4._Cross_Section.jpg

To view a map of Figure 5 please visit the following link:

http://media3.marketwire.com/docs/Figure_5._Long_Section.jpg

Contact Information

  • Lake Shore Gold Corp.
    Tony Makuch
    President & CEO
    (416) 703-6298
    or
    Lake Shore Gold Corp.
    Mark Utting
    Vice-President, Investor Relations
    (416) 703-6298
    (416) 703-7764 (FAX)
    Email: mutting@lsgold.com
    Website: www.lsgold.com