Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

November 20, 2006 07:01 ET

Lake Shore Gold Increases the Indicated Mineral Resource to 3.27 Million Tonnes at 12.29 Grams Gold Per Tonne, Uncut, at Timmins West

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 20, 2006) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore" or "the Company") reports a 78% increase in the indicated mineral resource estimate at its 100%-owned Timmins West Property to 1.29 million ounces gold (uncut), and an increase in the inferred mineral resource to 207,000 ounces gold (uncut), over the previous resource estimate in September 2004.

Lake Shore President and CEO Brian Booth said: "Timmins West continues to deliver consistent grades and continuity. These new ounces were added at a cost of just $12 per ounce, and the new indicated resource estimate averages 12.29 grams of gold per tonne. All of the zones remain open down plunge to the west. Our next step will be to complete the pre-feasibility study and obtain an advanced underground exploration permit in 2007. In the meantime we will continue to explore the Main Zone below the 650 metre level and the Vein Zones below the 400 metre level to further expand the resources."

The current resource estimate follows the completion of the Timmins West resource expansion drill program and used a 1.5 metre minimum core length, a 3.0 grams gold per tonne cut-off grade and a US$500 long-term gold price assumption. The mineral resource estimate was audited by Watts Griffis and McOuat Limited, an independent, Toronto-based international geological and mining consulting firm.



Indicated Mineral Resource
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Gold (Cut Grade(1,2)) Gold (Uncut Grade(2))
-------------------------------------------
Grams per Grams per
Zone Tonnes tonne Ounces tonne Ounces
--------------------------------------------------------------------------
Main / Vein Zones 346,000 9.92 110,500 17.60 196,000
--------------------------------------------------------------------------
Footwall Zones 1,185,000 7.27 277,000 7.57 288,000
--------------------------------------------------------------------------
Ultramafic Zones 1,737,000 9.27 517,500 14.46 807,000
--------------------------------------------------------------------------
Total All Zones 3,268,000 8.62 905,000 12.29 1,291,000
--------------------------------------------------------------------------
(1) Based on a 3.0 grams gold per tonne minimum cutoff and 50 grams gold
per tonne cap for the Ultramafic and Vein Zones and a 30 grams gold
per tonne cap for the Footwall Zone.
(2) The Company is presenting both uncut and cut figures as it is not
possible at this stage to determine which figure is more representative
of the mineralized zones on the Timmins West Property.

Inferred Mineral Resource
--------------------------------------------------------------------------
Gold (Cut Grade(1,2)) Gold (Uncut Grade(2))
-------------------------------------------
Grams per Grams per
Zone Tonnes tonne Ounces tonne Ounces
--------------------------------------------------------------------------
Main / Vein Zones 543,000 5.68 99,100 7.27 127,000
--------------------------------------------------------------------------
Footwall Zones 340,000 5.95 65,000 6.27 69,000
--------------------------------------------------------------------------
Ultramafic Zones 85,000 3.89 10,600 3.89 11,000
--------------------------------------------------------------------------
Total All Zones 968,000 5.54 174,700 5.79 207,000
--------------------------------------------------------------------------
(1) Based on a 3.0 grams gold per tonne minimum cutoff and 50 grams gold
per tonne cap for the Ultramafic and Vein Zones and a 30 grams gold
per tonne cap for the Footwall Zone.
(2) The Company is presenting both uncut and cut figures as it is not
possible at this stage to determine which figure is more representative
of the mineralized zones on the Timmins West Property.


A higher grade core, using a greater than 6 gram gold per tonne cutoff grade, within the indicated resource is estimated to contain 1.16 million ounces gold from 2.29 million tonnes at 15.76 grams gold per tonne (uncut) or 775,000 ounces gold at 10.52 grams gold per tonne (cut).

The increase over the 2004 resource estimate is due largely to the continuity and consistency of grade of the Ultramafic and Footwall Zones between the 800 and 1,200 metre levels. The Vein Zones 1, 2 and 3 were not drilled during 2005-2006 and will be the focus of further resource expansion below the 400 metre level in 2007 along with continued drilling down plunge on the Main Zone.

Quality Control

Lake Shore Gold has implemented a quality control program to ensure best practice in the sampling and analysis of the drill core. Drill core is cut in half and sampled in standard intervals. All samples are transported in security-sealed bags and sent for analysis to ALS Chemex, which is an ISO9002-2000 BSI Registered laboratory. The other half of the core not submitted for assay remains stored in a secure location.

All samples from the most mineralized horizons are sampled in 0.5 metre intervals unless dictated by geological contacts. These samples are assayed using a pulp and metallics procedure. Pulp metallic assays are believed to be more representative of the true value of the mineralized interval, as the entire sample sent to the lab is processed in the assaying procedures. Drill core from zones of minor veining or mineralization are analyzed by 50-gram fire assay.

Standards and blanks were submitted every 25 samples and every 25th sample was re-analyzed by the lab. Approximately 5% of all samples were re-assayed by Accurassay in Thunder Bay, Ontario an ISO9002-2000 BSI Registered laboratory.

The resources disclosed in this news release have been estimated using definitions and guidelines that conform to National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

The Company's Qualified Person ("QP") for Timmins West is Jacques Samson, P.Geo. As the QP he has prepared or supervised the preparation of the scientific or technical information for the property.

About Lake Shore

Lake Shore is a mineral exploration company engaged in the acquisition and exploration of mineral properties with prospects for hosting gold and base metal deposits. The Company is currently active in Canada and holds a number of mineral resource properties, either directly or through option agreements, in Ontario and Quebec. Lake Shore is a reporting issuer in British Columbia, Alberta, Manitoba, Ontario and Quebec, and trades on the Toronto Stock Exchange under the symbol LSG.

Forward-looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements.

Contact Information

  • Lake Shore Gold Corp.
    Meghan Brown
    Manager Investor Relations
    (604) 669-3533
    (604) 688-5175 (FAX)
    Email: mbrown@lsgold.com
    or
    Lake Shore Gold Corp.
    Brian R. Booth
    President and CEO
    (705) 525-0992
    Email: info@lsgold.com
    Website: www.lsgold.com