Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

March 31, 2009 05:00 ET

Lake Shore Gold Announces 19.55 g/t Over 6.00 Metres and Discovery of Second Mineralized Horizon in Porphyry at Thunder Creek

- 8.86 g/t Au over 24.85 m, including 10.88 g/t Au over 4.05 m, 19.55 g/t over 6.00 m, 7.95 g/t Au over 5.25 m in hole TC09-69 - Rusk Zone extended 775 m below surface; remains open at depth - Second gold zone indentified within Porphyry; Porphyry Zone returns gold mineralization over 122 m

TORONTO, ONTARIO--(Marketwire - March 31, 2009) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced the release of new, high-grade intercepts from six additional holes (4,093 metres) as part of its ongoing 22,000 metre diamond drill program on the Company's Thunder Creek property, which is located immediately adjacent to Lake Shore Gold's 100%-owned Timmins Mine project. The Company is the operator of Thunder Creek joint venture with a 60% interest in the property. The results include an intercept of 8.86 g/t Au over 24.85 m, including 10.88 g/t Au over 4.05 m, 19.55 g/t Au over 6.00 m and 7.95 g/t Au over 5.25 m in Hole TC09-69, and 7.41 g/t Au over 3.00 m, 5.80 g/t Au over 13.65 m and 5.29 g/t Au over 12.85 m in Hole TC09-68. These intercepts extend the Rusk and Porphyry zones at Thunder Creek by 200 metres at depth and 100 metres along strike, for a total depth of approximately 775 metres. They also indicate the presence of a second significant mineralized horizon within the Porphyry zone. The zones remain open at depth and along strike.

Hole TC09-68 and 69 were designed to test the downward extension of the Rusk and Porphyry zones below the previously announced Hole TC08-54 (see press release dated December 16, 2008), which had been the deepest intercept at 575 m and was the first to be identified within a new porphyry-hosted mineralized system. Included within TC08-54 was a high-grade zone of 25.99 g/t Au over 3.00 m within a broader zone averaging 5.90 g/t au over 26.35 m. Based on the results of TC09-68 and TC09-69, the overall thickness of the Syenite porphyry has increased from approximately 30 m in Hole TC08-54 to over 120 m in Hole TC09-69 and there are at least two significant horizons of mineralization within the Porphyry extending to depth. Mineralization in the Porphyry zone continues to indicate a strong association with quartz veining, increased pyrite and VG (visible gold) with minor scheelite, sphalerite, galena, molybdenite and tellurides.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "The results being announced today are extremely encouraging. In the tradition of Timmins gold deposits, we are seeing that the mineralized system within the porphyry is running to depth and, equally important, is widening as it deepens. In addition, the discovery of multiple horizons greatly enhances the potential of each drill hole to encounter mineralization and to add meaningfully to the size and resource potential of the project. Today's results also highlight the significant potential of the historically un-mined portion of Timmins gold camp lying west of the Mattagami River Fault, an area that we believe represents an important new chapter to this legendary mining camp."

In August of 2008, Lake Shore Gold announced the beginning of a 22,000 metre diamond drilling program on the Thunder Creek property. The program was designed to be carried-out intermittently with one to two drill rigs, and will extend to approximately mid-2009. There are currently two drills working on the property. A total of 10,995 metres in 19 holes have been completed, with results from the first nine holes (4,000 metres) having been released in a press release on December 16, 2008 and an additional six holes (4,093 metres) being announced in today's press release. Four additional holes plus wedge holes TC-09-68a and TC09-69a and portions of holes TC09-68 and TC09-69 above and below the Rusk and Porphyry Zones are still in the process of being sampled and assayed and two additional holes, TC09-70 and TC09-71, are still in progress drilling. TC09-70 is testing the area 100 metres to the east of TC09-68 and TC09-71 is testing approximately 125 metres west of TC09-69.



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Gold
Hole From To Length (g/T)
Number(i) (m) (m) (m) (ii) Comments
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TC08-60 546.8 567.95 21.15 3.48 Rusk Zone
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including 548.05 548.70 0.65 13.33
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and including 552.45 553.05 0.60 15.00
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and including 567.6 567.95 0.35 25.50
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TC08-61 48.90 49.40 0.50 6.03 Hangingwall Volcanic
Zone
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TC08-62 No significant results
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TC08-64 587.85 598.9 11.05 3.02 Rusk Zone
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Including 595.55 598.90 3.35 6.81
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and including 596.50 597.00 0.50 12.80
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and including 598.50 598.90 0.40 12.10
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TC09-68 894.00 897.00 3.00 7.41 Rusk Zone
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897.00 899.00 2.00 2 metres of lost core
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899.00 900.50 1.50 3.87 Rusk Zone
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And 906.40 1028.55 122.15 1.81 Porphyry Zone
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Including 915.45 929.10 13.65 5.80
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and including 952.90 965.75 12.85 5.29
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TC09-69 781.40 806.25 24.85 8.86 Rusk Zone
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Including 783.20 787.25 4.05 10.88
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and including 789.20 795.20 6.00 19.55
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and including 801.00 806.25 5.25 7.95
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And 810.45 855.00 44.5 1.00 Porphyry zone
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Including 810.45 810.90 0.45 17.45
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and including 853.70 854.10 0.40 11.25
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(i) Due to uncertainties in zone orientations, true widths are not known
at this time. Assays reported are uncut
(ii) Mettallic screen assay results remain pending for certain samples.


Based on data collected to date, the Rusk Gold Zone appears to represent a high-grade shoot within a broad north-east trending mineralized corridor, steeply dipping to the northwest. This shoot lies along the contact between the Alkalic Intrusive Complex and sediments located in the footwall to the intrusive. It is characterized by very strong alteration and deformation, accompanied by numerous ultramafic to felsic dykes, quartz-ankerite veining, and sulphide mineralization. Significant intercepts below the 200 metre level, previously reported by the Company, within this Zone include: 10.91 g/t Au over 3.65 m (TC07-30), 8.57 g/t au over 9.00 m (TC07-43) and up to 24.61 g/t au over 7.0 m (TC07-36).

Among other holes reported today, TC08-60 and 64 intersected the Rusk Horizon between 400 and 500 m below surface. Hole TC08-60 intersected three zones averaging 5.55 g/t Au over 2.40 m, 5.50 g/t Au over 5.80 m and 4.24 g/t Au over 4.55 m, within a wider interval which averages 3.48 g/t Au over 21.15 m. The intercepts include high grade hits up to 13.33 g/t Au over 0.65 m, 15.00 g/t Au over 0.60 m and 25.50 g/t Au over 0.35 m. Hole TC08-64, located about 50m below TC07-41 (8.52 g/t Au over 2.05 m --see press release dated March 31, 2008), roughly 80m vertically below hole TC08-60, intersected 3.02 g/t Au over 11.05 m, including 6.81 g/t Au over 3.35 m, 12.80 g/t Au over 0.50 m and 12.10 g/t Au over 0.40 m.

TC08-61 and TC08-62 tested the Rusk Horizon at less than 150m below surface and did not obtained significant results, though it is believed that given uncertainties regarding the plunge in this area the holes may have passed over the projected plunge line for the high grade shoot.

The Thunder Creek property is a joint venture, with Lake Shore Gold owning a 60% interest and acting as project operator, with the remaining 40% interest owned by West Timmins Mining Inc.

Quality Control

The Company's Qualified Person ("QP") for the Thunder Creek property is Jacques Samson, P. Geo. As QP, he 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 a quality control program to ensure best practices in the sampling and analysis of drill core. Assays have been completed using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold, another pulp is taken and fire assayed with a gravimetric finish. Zones with visible gold are tested by pulp metallic analysis. 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 for preparation at ALS Chemex Prep Lab located in Timmins, Ontario, and the pulps shipped to ALS Chemex Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registered laboratory preparing for ISO 17025 certification.

About Lake Shore Gold

Lake Shore Gold Corp. 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 to access shallow mineralization. The Timmins Mine project is located 18 kilometers west of Timmins, one of the world's most productive mining camps having produced approximately 75 million ounces of gold over the last century. The wholly owned Bell Creek Mill, located just east of Timmins, has been refurbished to a capacity of 800 tonnes per day, and the Company is moving forward with a number of prospective exploration properties in the Timmins area and in other parts of Northern Ontario and Quebec. Lake Shore Gold's common shares trade on the Toronto Stock Exchange under the symbol LSG.

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.

To view Figure 1 (Cross Section), please click on the following link: http://media3.marketwire.com/docs/fig_1.pdf

To view Figure 2 (Plan View), please click on the following link: http://media3.marketwire.com/docs/fig_2.pdf

To view Figure 3 (3D View), please click on the following link: http://media3.marketwire.com/docs/figa_3.pdf

To view Figure 4 (Long Section), please click on the following link: http://media3.marketwire.com/docs/fig_4.pdf

Contact Information

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