Lake Shore Gold Corp.
TSX VENTURE : LSG

Lake Shore Gold Corp.

August 15, 2005 17:40 ET

Lake Shore Gold Intersects 18.09 Grams/Tonne Gold Over 5.70 Metres Timmins West Gold Property, Ontario

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 15, 2005) - Lake Shore Gold Corp. (TSX VENTURE:LSG) reports the latest results of the resource expansion drill program on the Company's 100% owned Timmins West Gold Property located in the Timmins Gold Camp, Ontario. Continued drilling of branch holes on sections 4500E and 4350E, and on hole TG05-72, a hole drilled across the plunge of the ultramafic, have further demonstrated the down plunge mineralization and predictability of the both the Ultramafic and Footwall Zones. Core intersection highlights within the Ultramafic Zone include 4.65 grams gold per tonne (g/t Au) (cut) over 29.10 metres, including 18.09 g/t Au (cut) over 5.70 metres and another hole returning 6.2 g/t Au (cut) over 10.80 metres. Four drills are currently in operation on the Property, focused on sectional drilling with a fifth slated to begin drilling new opportunities as well as the Main Zone and Vein Zones down plunge to the west.

"We are extremely pleased with the progress being made at our Timmins West Gold Property. In addition to the aggressive expansion drilling program on the Timmins West deposit, we are also embarking on an exploration program to test a number of new gold targets on the Property that if successful will add significant value to the Property," said Brian Booth, President of Lake Shore.

Timmins West Gold Property Resource Expansion Drilling

The Company's previous news release dated May 30, 2005 reported results that confirmed that mineralization extends an additional 450 metres (down plunge) beyond the current indicated resource, representing an order of magnitude step out. The current drilling will infill these sections with the objective of bringing the new mineralization into the indicated resource category.

One pilot hole and four branch holes have been completed on section 4350E to date. Branch holes TG05-65e and TG05-65f were drilled to test the potential upward continuation of the ultramafic complex and its associated gold zones on this section. These holes did not intersect significant gold mineralization as they were drilled above the Ultramafic Zone and below the Main Zone. On section 4350E the Ultramafic Zone remains open at depth. Expansion drilling continues on section 4500E with hole TG05-64E, a wedge hole undercutting the significant intersection reported herein for hole TG05-64c. Drilling on two new sections (4450E and 4550E) has commenced. Each section will consist of two pilot holes and a series of branch holes targeting the down plunge continuation of the Footwall and Ultramafic Zones. Once completed, this sectional drilling will infill the previous sections at approximately 50 metres and will allow a new resource audit to be completed.

The mineralized Ultramafic Zones reported in the table below are generally characterized by a very wide and strong alteration and veining envelope, grading 2.48 grams gold per tonne over a core length of 56.9 metres in hole TG05-64c, and 2.15 grams gold per tonne over a core length of 73.2 metres in hole TG05-72. The expansion drilling continues to demonstrate the continuity and strength of the Ultramafic Zones at depth, over substantial widths.

An updated composite longitudinal section of the Timmins West Gold Deposit is posted on the Company's web site.



---------------------------------------------------------------------
Intersection Assay
---------------- ------------------
Gold Gold
(cut(i)) (uncut(i))
(grams (grams
Hole Sec- From To Length per per
No. tion (metres) (metres) (metres) tonne) tonne) Zone
---------------------------------------------------------------------
TG05-64c 4500E 1147.70 1204.60 56.90 2.48 2.48 UM Zone
---------------------------------------------------------------------
including 1152.75 1154.75 2.00 8.29 8.29 UM Zone
---------------------------------------------------------------------
including 1158.95 1169.75 10.80 6.20 6.20 UM Zone
---------------------------------------------------------------------
including 1167.60 1169.75 2.15 12.29 12.29 UM Zone
---------------------------------------------------------------------
including 1178.15 1180.30 2.15 12.20 12.30 UM Zone
---------------------------------------------------------------------
including 1179.80 1180.30 0.50 50.00 50.40 UM Zone
---------------------------------------------------------------------
including 1187.90 1188.40 0.50 18.60 18.60 UM Zone
---------------------------------------------------------------------
including 1199.40 1199.90 0.50 6.83 6.83 UM Zone
---------------------------------------------------------------------
TG05-64e 4500E drilling in progress
---------------------------------------------------------------------
TG05-64d 4500E hole completed - assays pending
---------------------------------------------------------------------
TG05-70 exploration hole (no significant results)
---------------------------------------------------------------------
TG05-71 4650E abandoned hole due to deviation
---------------------------------------------------------------------
TG05-72 4650E 603.80 677.00 73.20 2.15 2.17 UM Zone
---------------------------------------------------------------------
including 627.10 627.50 0.40 50.00 53.00 UM Zone
---------------------------------------------------------------------
including 644.40 673.50 29.10 4.65 4.65 UM Zone
---------------------------------------------------------------------
including 660.70 671.90 11.20 10.33 10.33 UM Zone
---------------------------------------------------------------------
including 665.60 671.30 5.70 18.09 18.09 UM Zone
---------------------------------------------------------------------
688.10 690.60 2.50 9.71 9.71 UM Zone
---------------------------------------------------------------------
696.80 698.05 1.25 4.87 4.87 UM Zone
---------------------------------------------------------------------
TG05-72a 4650E hole completed - assays pending
---------------------------------------------------------------------
TG05-73 4650E abandoned hole due to deviation
---------------------------------------------------------------------
TG05-65c 4350E 1213.60 1214.70 1.10 8.83 8.83 Above UM
Zone/
below
Main Zone
---------------------------------------------------------------------
including 1213.60 1214.20 0.60 14.65 14.65 Above UM
Zone/
below
Main Zone
---------------------------------------------------------------------
TG05-65e 4350E 1213.60 1215.35 1.75 1.55 1.55 Above UM
Zone/
below
Main Zone
---------------------------------------------------------------------
TG05-65f 4350E 1185.80 1186.30 0.50 1.56 1.56 Above UM
Zone/
below
Main Zone
---------------------------------------------------------------------
TG05-74 4450E abandoned pilot hole due to deviation
---------------------------------------------------------------------
TG05-74a 4450E pilot hole in progress
---------------------------------------------------------------------
TG05-75 4450E pilot hole in progress
---------------------------------------------------------------------
TG05-76 4550E pilot hole in progress
---------------------------------------------------------------------
(i) All Footwall Zone assays cut to 30 grams gold per tonne and
Ultramafic Zone assays cut to 50 grams gold per tonne.


Timmins West Gold Property Pre-Feasibility Study Update

Work continues on the Timmins West Gold Property pre-feasibility study (see January 6, 2005, news release) with the commencement of the environmental impact assessment study, the tailings study, and the toll and custom mills study. The advanced metallurgical study, initiated in the second quarter, nears completion. Awarding of all contracts has been completed with the anticipated date of the final reports by the end of this year. Preliminary engineering estimates for mining and milling costs are considerably better than expected and support a lowering of the resource cutoff grade (currently using 6 grams gold per tonne).

Vogel Property Update

A 4,000 metre drill program has been initiated on the Company's 100% owned Vogel Property. This first phase drilling is designed to test newly recognized structural targets for the presence of high-grade northeast and flat vein structures that were not adequately tested for in previous drill programs. The Vogel Property contains a historic measured and indicated resource estimate of 642,000 tonnes at 12.7 grams gold per tonne. (Glencairn's 2003 Annual Report based on ACA Howe's 1999 resource estimate using CIM standards, for Black Hawk Mining Corp., which resource estimate is not National Instrument 43-101 compliant). The Vogel resource occurs within the main mine stratigraphy between the Hoyle Pond-Bell Creek-Owl Creek deposits. These producing and past producers encounter bonanza grade gold mineralization associated with flat vein structures that help to make this mineralized zone one of the highest-grade gold zones mined in the Timmins Camp. The flat vein bonanza gold targets have never been drill tested at the Vogel Property and there is strong evidence for the presence of these structures in and near the current resource area. The drilling program will target these veins and if successful, will greatly enhance the value of the Vogel Property.

DeSantis Property Update

The DeSantis Gold Property is located 8 kilometres east of the Timmins West Gold Property in Ogden Township. Past production from DeSantis (1939-1942) was 35,800 ounces of gold from 179,000 tonnes milled at 6.2 grams per tonne gold with a 92% recovery. Production came from two main ore types (Albite and Hydrothermal zones) hosted within highly altered mafic and ultramafic volcanic rocks. Lake Shore's compilation of historic data is nearing completion with drilling expected to commence later this fall. Drilling is designed to expand resources on the Property below 450 metres, and to test newly identified targets along strike of the resource.

Geraldton Property

Initial fieldwork on the Company's two Geraldton gold properties has been completed. The Geraldton-Beardmore Gold Camp is located approximately 300 kilometers northeast of Thunder Bay, Ontario. Since the mid-1930s, the Camp has produced 4.12 million ounces of gold from 19 past producing mines. A major portion of the gold came from the MacLeod-Cockshutt Mine (1,366,404 ounces) where gold was associated with intensely sheared and folded felsic to intermediate metavolcanic rocks and porphyritic intrusives.

Field work has identified a number of vein structures related to known gold mineralization, as well as some new shear hosted quartz veins. Detailed geological mapping, stripping and sampling has recently been completed in preparation for a first phase drill program planned to commence later this year.

Lacy Lake Gold Property

The Lacy Lake Gold property is located in the Ellard Lake area in northwestern Ontario, Thunder Bay Mining Division. The 34 claim Property was staked to cover a mafic to andesitic volcanic package intruded by a series of alkaline - silica undersaturated intrusions. The main area of interest lies to the east of the largest of these intrusions (Ellard Intrusion) and west of the past producing Sachigo River Gold Mine, a high-grade former producer (1938 to 1941) reporting an average grade of 1.131 ounces gold per ton.

A prospecting team is currently working on the Property, following up on highly anomalous till sample results. The results of that sampling program have helped identify new target areas based on elevated pristine gold grain counts.

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 Corporation'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 statement.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Lake Shore Gold Corp.
    Brian R. Booth
    President
    (604) 669-3533
    (604) 688-5175 (FAX)
    or
    Lake Shore Gold Corp.
    Daniel G. Innes
    Chairman
    (604) 669-3533
    (604) 688-5175 (FAX)
    or
    Lake Shore Gold Corp.
    Dr. Michael J. Byron
    VP, Exploration
    (705) 525-0992
    (705) 525-7701 (FAX)
    info@lsgold.com
    www.lsgold.com