Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

October 29, 2009 07:04 ET

Lake Shore Gold Reports Results of Underground Drilling and Development at Timmins Mine, Results Confirm Previous Drilling and Expand Resource Potential

- New, high-grade intercepts include: 16.41 grams per tonne ("gpt") over 14.20 metres ("m"), 13.26 gpt over 12.70 m and 52.89 gpt over 5.75 m. - New high-grade lenses identified outside existing resource between the Ultramafic and Footwall zones, including 10.79 gpt over 4.10 m and 14.67 gpt over 3.75 m. - Holes drilled intersected grades and widths consistent with previous surface drilling, indicates overall size and shape of main Ultramafic Zone similar to resource model. - Development on 650 m Level continuing, ramp being driven for first sublevel (20 m above 650 Level).

TORONTO, ONTARIO--(Marketwire - Oct. 29, 2009) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from 21 underground holes (4,417 m) from the 525 m and 650 m Levels of the Company's 100% owned Timmins Mine Property. The holes represent the continuation of an ongoing drilling and bulk sampling program which is testing the continuity and grade of the Ultramafic ("UM") Zone and Footwall Zone between the 650 m and 525 m Levels. Current drilling from 650 m Level is being done on 12.5 m centres and targeting a 50 m horizontal slice above the 650 m Level which will be part of the first test stope.

Key intercepts from the 21 holes include: 16.41 gpt over 14.20 m (including 114.00 gpt over 0.70 m) and 13.26 gpt over 12.70 m (including 63.37 gpt over 1.20 m) and 52.89 gpt over 5.75 m. Holes drilled intersected grades and widths consistent with previous surface drilling, with the overall size and shape of the main Ultramafic Zone ("UM1") being shown to be similar to previous projections, based on current drilling. In addition, Hole 525-005 intersected high-grade mineralization in areas outside of the existing resource at the 525 Level, including grades of 7.19 gpt over 14.15 m and 4.99 gpt over 15.50 m. New high-grade lenses were identified on the 650 m Level between the Ultramafic and Footwall zones, including 10.79 gpt over 4.10 m in Hole 650-023 and 14.67 gpt over 3.75 m in Hole 650-025a.

New modeling and resource estimation for the 50 m horizontal slice above the 650 Level being evaluated, using inverse distance squared block modeling and a 50 gpt capping factor, suggests that tonnage and ounces for the Utramafic Zone resource could be expanded from the most recent 43-101 resource calculation at similar grades.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "The results from our ongoing underground drilling and development program at Timmins Mine are very encouraging and confirm the grades and widths established from previous surface drill programs. With the results from holes 525-005, 650-023 and 650-025a we also continue to intersect high-grade mineralization outside of the known resource. Our development from the shaft on the 650 m Level is also advancing very well and we have commenced driving a development ramp 20 m above the 650 Level where we are planning our first sublevel."

Mineralization in the area being evaluated occurs as a series of E-W trending lenses surrounding a steep west plunging fold nose formed at the contact between ultramafic and volcanic rocks. The bulk of known resources are contained within the UM1 Zone, which occupies the core of the fold, and Footwall Zone to the north and along the contact of the Ultramafics with volcanic rocks. The UM1 Zone has an average strike length of approximately 125 m and width of 10 to 15 m. The Footwall zones are shorter in strike length but may be more numerous than originally thought and have local high grades.

Closely associated with the mineralization in the Ultramafic and Footwall zones is quartz veining, abundant pyrite, strong alteration, and local visible gold Besides confirming grades obtained by previous surface drilling, mineralized intercepts in this recently completed underground diamond drilling correlate well with the predicted locations of the zones as interpreted from the original more widely spaced surface drill holes.

At present 54 holes and 8,144 m of diamond drilling have been completed on the 650 level with 32 holes and 3,596 m remaining to be reported. An additional 28 holes (6,012 m) have been drilled on the 525 m Level with results for three holes being reported to date. Based on positive results so far a development ramp is now in progress to access the area approx 20 m above the 650 m Level where ore definition for the first mining block and bulk sampling will continue.

Quality Control

The Company's Qualified Person ("QP") for the underground drill program at the Timmins Mine property is Heather Miree, P.Geo. As QP, she has prepared or supervised the preparation of the scientific or technical information for the property and has 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. Samples are obtained from BQTK-sized diamond drill core, with roughly 75% of sampled core being sawn in half and the remaining 25% being whole core sampled. All remaining core materials, including the remaining half of sawn core is retained on site in a secure location. Drill core samples are s for sample preparation and gold analysis performed by ALS Chemex. ALS Chemex is an ISO 9001-200 registered laboratory, preparing for ISO 17025 certification. Drill core samples are transported in security-sealed bags to ALS Chemex's Timmins Sample Preparation Facility. Sample preparation is completed in Timmins, and the prepared sample pulps are then transported to ALS Chemex's analytical laboratory in Vancouver, BC. Gold grades are obtained on all samples via Fire Assay with Atomic Absorption finish, using 50g aliquots. For samples that return a gold content greater than 3 gpt, the sample is reanalyzed via Fire Assay with Gravimetric finish, again using a 50g aliquot.

About Lake Shore Gold

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. The Company'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.




Timmins Mine - Significant Assay Results for Shaft Area

---------------------------------------------------------------------------
Hole # East Azimuth Dip Depth From To Grade Width
(M) (gpt) (m)
------ ---- ------- --- ------ ---- -- ------ ------
525-002 4703 360 1 186 No Significant Intercepts
525-005 4703 004 -28 125 43.55 44.65 8.46 1.10
48.40 63.90 4.99 15.50
71.60 85.75 7.19 14.15
650-003 4671 359 20 231 90.40 90.90 4.43 0.50
92.40 105.00 17.83 12.60
including 101.50 102.50 93.6 1.00
109.50 110.50 3.34 1.00
137.70 145.40 11.86 7.70
149.50 150.00 5.72 0.50
650-004 4671 8 4 271 102.50 116.70 16.41 14.20
including 109.80 110.50 114.0 0.70
121.20 122.00 3.83 0.80
133.80 134.80 23.40 1.00
174.90 186.50 5.41 11.60
192.50 193.50 3.91 1.00
650-005 4671 008 +11 240 106.30 119.00 13.26 12.70
including 115.30 116.50 63.37 1.20
123.90 124.90 6.32 1.00
186.20 187.80 15.75 1.60
650-007 4671 13 16 234 108.40 114.15 52.89 5.75
including 109.00 110.95 131.08 1.95
113.60 114.15 52.70 0.55
121.65 122.10 3.79 0.45
142.60 143.60 3.08 1.00
145.00 148.00 4.61 3.00
177.80 178.40 5.45 0.60
181.90 183.00 5.34 1.10
223.80 224.10 6.86 0.30
650-008 4705 350 13 111 43.30 59.40 10.52 16.10
100.40 101.20 14.59 0.80
110.50 111.00 4.04 0.50
650-009a 4671 350 13 237 96.00 103.00 9.08 7.00
107.00 108.00 19.05 1.00
181.00 182.00 3.51 1.00
650-010 4671 350 +1 261 103.80 107.15 7.34 3.35
133.90 135.25 6.73 1.35
137.00 137.70 4.17 0.70
139.00 143.40 6.11 4.40
650-011a 4671 350 -5 303 115.50 116.50 3.23 1.00
121.90 122.90 5.14 1.00
167.60 167.90 3.57 0.30
650-013 4671 008 +11 240 No Significant Intercepts
650-014 4671 320 1 171 No Significant Intercepts
650-018 4706 8 12 117 55.00 55.50 11.20 0.50
94.00 95.00 25.80 1.00
100.00 101.00 6.68 1.00
650-019a 4706 8 1 204 53.00 57.00 4.95 4.00
including 54.00 55.00 12.25 1.00
62.00 64.00 11.42 2.00
72.00 79.10 11.66 7.10
96.00 97.00 9.52 1.00
100.10 104.00 22.38 3.90
116.10 119.00 11.89 2.90
650-021a 4671 340 5 270 92.50 93.00 2.99 0.50
102.00 111.00 11.94 9.00
122.70 124.00 5.27 1.30
650-023 4706 359 1 231 67.20 68.20 3.05 1.00
70.50 77.90 9.64 7.40
110.40 114.50 10.79 4.10
116.30 117.30 3.04 1.00
123.70 124.20 13.8 0.50
650-025a 4671 340 -2 246 93.20 94.60 6.78 1.40
113.10 117.35 8.96 4.25
121.90 122.90 4.79 1.00
131.15 131.90 7.65 0.75
143.85 144.85 5.51 1.00
151.50 152.20 6.32 0.70
162.75 163.20 5.14 0.45
168.75 168.95 3.03 0.20
187.25 191.00 14.67 3.75
195.00 197.00 4.92 2.00
201.00 201.60 3.90 0.60
650-026a 4671 334 -1 255 91.40 91.90 11.75 0.50
95.20 104.50 20.28 9.30
108.50 113.80 9.07 5.30
128.00 128.40 8.93 0.40
143.10 143.70 7.27 0.60
227.80 228.25 8.02 0.45
241.20 241.80 15.65 0.60
650-027b 4671 330 1 150 97.85 98.60 3.72 0.75
106.00 117.30 6.67 11.30
135.40 136.70 4.91 1.30
650-033 4705 350 1 147 49.20 56.30 11.03 7.10
including 53.50 56.30 22.40 2.80
59.00 60.00 3.60 1.00
63.00 65.00 4.17 2.00
72.50 74.10 6.84 1.60
93.50 94.40 4.27 0.90
101.00 101.60 22.10 0.60
113.90 118.00 6.52 4.10
123.80 126.50 5.64 2.70
650-050 4706 17 1 87 No Significant Intercepts
---------------------------------------------------------------------------

Note: True widths are not determined at this time.
Assays reported are uncut.



To view Figure 1 (Plan View) please visit the following link: http://media3.marketwire.com/docs/LSG1029a.pdf

To view Figure 2 (Cross Section) please visit the following link: http://media3.marketwire.com/docs/LSG1029b.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