Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

October 01, 2009 05:00 ET

Lake Shore Gold Reports Extension to High Grade Mineralization at Bell Creek, Including 12.67 gpt Gold Over 14.40 Metres

- BC-09-53 intersects 12.67 grams per tonne ("gpt") gold ("Au") over 14.40 metres ("m"), including 16.73 gpt over 10.0 m, 60 m west of previously reported BC-09-24B (12.63 gpt over 11.65 m). - BC-09-24F returns 7.35 gpt Au over 7.1 m, 32 m up dip from BC-09-24B. - BC-09-24C intersects 6.04 gpt Au over 4.1 m, 85 m up dip from BC-09-24B.

TORONTO, ONTARIO--(Marketwire - Oct. 1, 2009) - - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from 25 new holes, 6 wedge holes and one hole extension (12,085 m) at the Company's 100% owned Bell Creek property. The most significant results being reported are from Hole BC-09-53, which intersected 12.67 gpt Au over 14.40 m, including higher grade zones of 16.73 gpt Au over 10.0 m (including 29.90 gpt over 2.0 m and 18.48 gpt over 2 m).

BC-09-53 intersected mineralization at a vertical depth of 985 m below surface and approximately 60 m west of previously released Hole BC-09-24B, which returned 12.63 gpt over 11.65 m (see press release dated July 21, 2009) and 165 m below previously released BC-08-09, which included 7.60 gpt over 6.30 m, 6.06 gpt over 4.65 m and 7.76 gpt over 1.15 m (see press release dated December 10, 2008). In addition, holes BC-09-24F and BC-09-24C returned 7.35 gpt over 7.1 m and 6.04 gpt over 4.1 m from the same zone, 32 m and 85 m, respectively, up dip from hole BC-09-24B.

These new significant intersections occur at depth along a steeply south dipping contact between mafic and ultramafic rocks west of the Bell Creek fault. As with BC-09-24B, the new intersections are associated with strong hydrothermal alteration, quartz veining and 5-15% pyrite and pyrrhotite mineralization.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "Today's results provide confirmation both that a large gold system exists at depth at Bell Creek and that there is consistency and continuity to the mineralization closer to surface near the historic mineralization. Drilling to date has demonstrated excellent grades and widths to a total plunge length of 1,150 m. With results from BC-09-53, the total strike length of the mineralized system at depth has been identified to a minimum of 185 m, with the system remaining open both at depth and along strike. We continue to be very encouraged with exploration results at Bell Creek and currently have six drills working on the property, four involved in resource definition of the North A and other veins in the central part of the main easterly plunging system and two drills following up on deep mineralization.

"In addition to exploration success from surface drilling, work is progressing well on the underground advanced exploration program at Bell Creek, with the Bell Creek shaft being de-watered to a depth of approximately 150 m and the ramp having advanced 570 m. Our plans are to develop Bell Creek into Lake Shore Gold's second mine complex in Timmins, as we transition and grow Lake Shore Gold into a mid-tier gold producer."

A number of holes being reported today were drilled as part of an ongoing program to test the Bell Creek 'Vein Zones' along a 500 metre strike length to a depth of 700 metres. The main target of the 'Vein Zone' drilling is the North A Zone from which the bulk of previous production occurred. This current drilling is testing the North A horizon at 50 - 75 metre centres between the 400 and 700 metre levels. Significant intersections from this zone include 6.27 gpt Au over 3.00 m in Hole BC-09-11, 11.56 gpt Au over 2.20 m in BC-09-50 and 6.64 gpt Au over 1.10 m in BC-09-07.

Today's results also include 7 holes designed to test the previously announced Portal and South Zones. A total of 6 holes tested the Portal Zone, located 180 m south of the Bell Creek shaft and within 100 m of the Bell Creek ramp. Significant intersections from this zone include 5.87 gpt Au over 3.2 m, including 18.40 gpt over 0.8 m, from BC-09-37. This mineralization is hosted within locally well altered and mineralized mafic flows. Hole BC-08-22 intersected 5.66 gpt Au over 3.1 m, including 37.10 gpt over 0.5 m from the South Zone, a new zone first intersected in mid-2008 (see press release dated July 9, 2008).

Hole S-09-06B, which tested the mafic ultramafic contact 120 metres east of BC-09-24B, confirmed the continuity of the mineralization at depth along strike. S-09-06B intersected 5.0 m of favourable hydrothermal alteration and quartz veining as encountered in BC-09-24B and BC-09-53 returning a gold grade of 2.06 gpt Au over 0.85 m. Lower sulphide content and weaker alteration appear to be the reason behind the lower grade.

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 mineral development and exploration company that is moving towards 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, including its 60% owned Thunder Creek joint venture property and its Casa Berardi optioned property, which it is exploring through a joint venture agreement with Aurizon Mines Ltd. Lake Shore Gold's common shares trade on the TSX under the symbol LSG.

On August 27, 2009, Lake Shore Gold and West Timmins Mining Inc. ("West Timmins") announced an agreement for a business combination under which Lake Shore Gold would acquire all outstanding West Timmins common shares at an exchange ratio of 0.73 of a Lake Shore Gold share for every West Timmins common share. As a result of the proposed transaction, Lake Shore Gold would 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. Subject to the approval of West Timmins shareholders and the satisfaction of other conditions, the transaction is expected to close in November.

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 Leng- Assay Target Comments
th
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Number (m) (m) (m) (gpt) Zone
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BC-08-22 356.80 359.90 3.10 5.66 South Zone
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includes 359.50 359.90 0.40 22.30 VG noted @ 359.9 metres
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410.60 411.10 0.50 37.10 South Zone
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BC-08-27 662.00 662.50 0.50 4.48 unknown hole extended in 2009
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676.70 677.70 1.00 5.38 North A
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BC-09-07 90.50 90.80 0.30 4.18 Portal Zone
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104.00 104.45 0.45 4.05 Portal Zone
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511.40 512.00 0.60 5.45 unknown
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515.70 516.25 0.55 4.18 unknown
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529.35 531.45 2.10 4.61 unknown
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534.60 536.10 1.50 5.71 unknown
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558.65 559.75 1.10 12.81 unknown
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597.50 598.60 1.10 6.64 North A
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665.05 665.55 0.50 5.33 unknown
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BC-09-08 226.20 227.30 1.10 6.31 W71 Vein
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BC-09-11 667.60 669.40 1.80 2.85 BC West Zone
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739.00 749.20 10.20 3.23 North A
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Includes 739.00 742.00 3.00 6.27
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824.10 825.10 1.00 3.35 unknown
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846.30 847.85 1.55 3.76 unknown
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BC-09-15 183.90 184.20 0.30 7.57 unknown
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BC-09-16 112.50 112.90 0.40 42.90 unknown VG @ 112.7 metres
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BC-09-20 116.20 117.30 1.10 7.59 E5F Vein
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145.40 146.20 0.80 6.14 E7F Vein
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309.10 310.60 1.50 4.89 North A
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Includes 309.80 310.60 0.80 8.15
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BC-09-22 157.50 158.10 0.60 3.97 unknown
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357.00 358.00 1.00 2.80 North A
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BC-09-23 320.90 321.20 0.30 5.78 unknown
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583.30 584.70 1.40 6.38 unknown
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622.30 622.60 0.30 7.38 North A
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646.10 646.40 0.30 5.61 unknown
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649.40 650.10 0.70 3.48 unknown
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BC-09-24C 970.90 971.40 0.50 5.72 unknown
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1110.40 1118.40 8.00 3.76 BC West Zone
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Includes 1110.40 1114.50 4.10 6.04
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1165.90 1166.50 0.60 4.59 unknown
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1208.30 1209.10 0.80 8.24 unknown
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BC-09-24F 1102.30 1116.50 14.20 4.76 BC West Zone
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Includes 1105.40 1112.50 7.10 7.35
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Includes 1108.30 1109.30 1.00 12.75
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BC-09-25 47.50 50.50 3.00 5.21 W3 Vein
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140.00 140.30 0.30 11.30 unknown
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BC-09-26 97.35 99.50 2.15 5.22 Portal Zone
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Includes 97.35 98.15 0.80 11.85
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532.85 535.10 2.95 2.02 unknown
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566.25 567.10 0.85 2.96 North A
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613.85 614.30 0.45 8.15 North B
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630.00 634.00 4.00 2.03 unknown
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BC-09-27 100.10 101.00 0.90 2.78 North A
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BC-09-29 563.95 564.80 0.85 4.59 unknown
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591.20 591.75 0.55 4.66 unknown
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642.60 643.15 0.55 4.58 North A
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BC-09-30 98.70 99.60 0.90 10.60 West vein
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BC-09-36 143.70 144.20 0.50 2.26 Portal Zone
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216.00 216.70 0.70 3.62 Portal Zone
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BC-09-37 99.00 100.50 1.50 5.58 Portal Zone
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118.70 121.90 3.20 5.87 Portal Zone
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includes 121.10 121.90 0.80 18.40 Portal Zone
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165.50 166.10 0.60 9.94 Portal Zone
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BC-09-43 123.40 124.00 0.60 3.73 Portal Zone
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BC-09-44 142.80 143.30 0.50 8.80 Portal Zone
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BC-09-50 229.50 231.00 1.50 2.06 Portal Zone
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530.00 530.70 0.70 5.61 unknown
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623.40 625.60 2.20 11.56 North A
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includes 623.90 624.40 0.50 19.25
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672.00 673.00 1.00 5.51 North B
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BC-09-53 1153.00 1167.40 14.40 12.67 BC West Zone
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includes 1153.00 1163.00 10.00 16.73
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includes 1154.00 1156.00 2.00 18.48
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and 1161.00 1163.00 2.00 29.90
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S-09-06B 1175.75 1176.60 0.85 2.06 BC West Zone
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Note 1: Holes BC-09-02, BC-09-17, BC-09-24B, BC-09-28, BC-09-34, S-09-06 &
S-09-06A did not return any significant values for this press
release.
Note 2: BC-09-24C was wedged off of BC-09-24B @ 547 m.
Note 3: BC-09-24D was wedged off of BC-09-24C @ 750 m and abandoned at
936 m due to drilling difficulties.
Note 4: BC-09-24E was wedged off of BC-09-24D @ 820 m and abandoned at
836 m due to drilling difficulties.
Note 5: BC-09-24F was wedged off of BC-09-24E @ 820 m.
Note 6: Holes BC-09-31, BC-09-32 & BC-09-33 were drilled as geotechnical
holes to test for overburden depth.
Note 7: BC-09-49 abandoned at 149 m due to excess deviation.
Note 8: S-09-06 abandoned at 489 m due to excess deviation.
Note 9: S-09-06A was wedged off of S-09-06 at 360 m and was abandoned at
697 m due to excess deviation.
Note 10: S-09-06B was wedged off of S-09-06A at 635 m.
Note 11: True widths are not known at this time.
Note 12: Assays are reported uncut.


To view Figure 1 (Plan View), please visit the following link:
http://media3.marketwire.com/docs/bellfig1.pdf

To view Figure 2 (Long Section), please visit the following link:
http://media3.marketwire.com/docs/bellfig2.pdf

To view Figure 3 (Cross Section 1), please visit the following link:
http://media3.marketwire.com/docs/bellfig3.pdf

To view Figure 4 (Cross Section 2), please visit the following link:
http://media3.marketwire.com/docs/bellfig4.pdf

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