Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

May 04, 2009 17:46 ET

Lake Shore Gold Continues to Expand Mineralization at Bell Creek, Extends Vogel Mineralization at Depth

- BC08-23,23a,23b and BC09-03 confirm extension of mineralization at least 200 metres east from mine workings with intercepts of 10.40 grams per tonne (gpt) gold (Au) over 0.60 m, 4.08 gpt over 3.45 m, 7.44 gpt over 0.50 m and 5.57 gpt over 1.50 m - BC08-24,24a,24b intercept mineralization 350 metres below mine workings with 4.95 gpt over 8.20 m, including 10.13 gpt over 0.40 m and 29.77 gpt over 0.90 m - New mineralization intersected near proposed collar location for ramp to extend from Bell Creek to Vogel - Visible gold ("VG") identified in four holes, three wedge holes - Vogel mineralization extended at least 300 metres at depth.

TORONTO, ONTARIO--(Marketwire - May 4, 2009) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from 20 holes (12,297 metres) from the Company's 100% owned Bell Creek and Vogel properties. Included in the results are holes confirming at least a 200 metre easterly extension of mineralization from the Bell Creek mine workings including intercepts of 10.40 gpt Au over 0.60 m and 4.08 gpt over 3.45 m in wedge hole BC08-23A, 7.44 gpt over 0.50 m within a broader intercept of 4.46 gpt over 2.00 m in Hole BC08-23 and 5.57 gpt over 1.5 m in BC09-03. These holes were drilled above discovery Hole BC08-09 (7.76 gpt over 1.50 m, 7.60 gpt over 6.3 m and 6.06 gpt over 4.65 m) which was reported on December 10, 2008 and indicate a minimum 300 metre vertical height for the mineralized zone in this area.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "The results being announced today are very encouraging as they confirm the significant extension of mineralization at Bell Creek both at depth and along strike from the historic resource. In addition, the identification of new mineralization near the planned portal site for the ramp we will drive as part of our Bell Creek Complex Advanced Exploration Program creates new opportunities. We are also encouraged by the drill results at Vogel which support our theory that there exists significant opportunity to identify new resources at depth at all three of our Bell Creek Complex properties (Bell Creek, Schumacher, Vogel) given the lack of historic drilling below 400 metres at each of the properties."

Also included are results from Hole BC08-24 and wedge holes BC08-24a and 24b which intersected mineralization 350 metres below the mine workings. Intercepts in Hole BC08-24 included 4.95 gpt over 8.20 m including 10.13 gpt over 0.40 m and 29.77 gpt over 0.9 m. Wedge Hole BC08-24b intersected 5.30 gpt over 6.90 m, including 8.72 gpt over 1.85 m.

New mineralization was intersected by several holes 225 metres south of the historic mine workings and near the proposed collar location for the new Vogel ramp which is due to commence development within the next month. Results from the new area included 4.81gpt over 1.90 m and 4.77 gpt over 0.70 m in Hole BC08-24, 5.61 gpt over 0.50 m in Hole BC08-30, 55.2 gpt over 0.30 m in BC08-32 and 4.08 gpt over 1.00 m in Hole BC08-33. These new results are located approximately 150 metres northeasterly from the new south zone discovered by Hole BC08-02 in 2008 which contained an intercept of 5.39 gpt over 6.05 metres (including 11.70 gpt over 1.70 metres). In total VG was identified at Bell Creek in four drill holes (BC08-21,23,24,32) and three wedge holes (BC08-23a,23c,24a).

At Vogel, results are being reported for one new hole, Hole V-08-01 (1,166 metres) which was completed in late 2008. The hole was drilled in the central part of the property in order to test the down dip extension of the mineralization. Results of the drilling were highly favorable and intersected strong alteration and local quartz veining containing an assay value of 8.89 gpt over 0.70 m in an area 300 metres below the historic area of mineralization, to a total depth of 950 metres. Drilling is still continuing in this area along with sampling and assaying of two additional holes (V-08-02 and V-09-01) and one wedge hole (V-08-01C) (3,248 metres). Initial observations from hole V-09-01 which is testing a similar elevation level as V-08-01 but on a north-south cross section 115 metres to the west indicated visible gold within smokey grey brecciated quartz veining at depths in the hole of 650 and 680 metres.

Mr. Makuch added, "We are currently carrying out an aggressive exploration program with five surface drills working at the Bell Creek Complex (four at Bell Creek and one at Vogel), and have started an advanced underground exploration program including dewatering and refurbishing the Bell Creek shaft and the collaring of a ramp from surface to the Bell Creek and Vogel mineralization. Although much work still needs to be done, we believe that Bell Creek has potential to be the Company's second mine in Timmins."

Quality Control

The Company's Qualified Person ("QP") for the Bell Creek property is Richard Labine, 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 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. Any assays showing VG or with greater than five grams per tonne Au 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 ALS Chemex.

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 wholly owned Bell Creek Mill, located on the east side of Timmins, has been refurbished to a capacity of 800 tonnes per day. The Company recently announced plans to commence an 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, and is pursuing a number of other highly prospective exploration properties in 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.



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Hole # From To Width Grade Comments
------ ---- -- ----- ----- --------
BC08-21 157.50 163.00 5.50 1.79
173.50 174.00 0.50 5.48
193.80 194.70 0.90 3.55 VG @194.25m
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BC08-23 612.60 614.00 3.31 1.40
615.80 617.80 2.00 4.46 VG @617.5m
incl 616.80 617.30 0.50 7.44
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BC08-23a 612.40 613.00 0.60 10.40
616.75 620.20 3.45 4.08 VG @615.9m

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BC08-23b 609.50 610.50 1.00 1.09
616.35 617.75 1.40 2.40
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BC08-23c 615.60 617.60 2.00 1.64 VG @615.9m
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BC08-23d 533.30 535.00 1.70 4.78
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BC08-24 141.50 143.40 1.90 4.81
150.15 151.05 0.90 4.77
771.60 779.80 8.20 4.95
including 771.60 772.00 0.40 10.13
and including 778.90 779.80 0.90 29.77 VG @779.3,779.6,781.35m
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BC08-24a 746.50 747.50 1.00 4.93 VG @744.35m,746.4m
755.60 756.60 1.00 7.86
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BC08-24b 768.50 775.90 6.90 5.30
incl 773.55 775.40 1.85 8.72
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BC08-27 137.15 138.40 1.25 4.77
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BC08-30 99.60 100.15 0.55 5.61
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BC08-32 218.6 218.9 0.3 55.2 VG @218.m
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BC08-33 206.6 207.6 1.0 4.08
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BC09-03 760.65 762.15 1.50 5.57
787.9 789.1 1.2 4.94
793.2 795.6 2.4 2.77
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V08-01 717.20 717.70 0.50 3.73
981.85 982.55 0.70 8.89
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BC08-16,17,18,19,20,22,25,26,28,29,31 No significant assays
Notes: Vg indicates visible gold in sample interval
True widths are not known at this time
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To view Figure 1 (Plan View of Bell Creek) - http://media3.marketwire.com/docs/lsg0504fig1.pdf.

To view Figure 2 (Cross Section of Bell Creek) - http://media3.marketwire.com/docs/lsg0504fig2.pdf.

To view Figure 3 (Second Cross Section of Bell Creek) - http://media3.marketwire.com/docs/lsg0504fig3.pdf.

To view Figure 4 (Long Section of Bell Creek) - http://media3.marketwire.com/docs/lsg0504fig4.pdf.

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