Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

January 20, 2006 08:30 ET

Lake Shore Gold Intersects 9.70 Metres Grading 11.29 Grams Per Tonne Gold, Timmins West Gold Project, Ontario

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 20, 2006) - Lake Shore Gold Corp. (TSX:LSG) announced today their latest sectional drilling results on the Company's 100% owned Timmins West Gold Property, located in the Timmins Gold Camp, Ontario. Infill drilling progressed on sections 4550E and 4450E, while drilling was initiated on section 4400E. Gold intersections over significant widths are reported for both the ultramafic and footwall ore hosts, and continue to confirm the continuity of the mineralized zones between sections and down plunge. Core intersection highlights within the Ultramafic Zone include 11.29 grams gold per tonne (cut) over 9.70 metres, including 15.78 grams gold per tonne (cut) over 5.60 metres, with another intercept averaging 14.27 grams gold per tonne (cut) over 7.05 metres, and another hole returning 22.63 grams gold per tonne (cut) over 1.60 metres (178.82 grams gold per tonne uncut).

Five drills are currently in operation on the Property, four focused on sectional drilling with a fifth testing the Ultramafic Zone up plunge as well as structural targets east of the main surface showing. Resource expansion drilling has focused on the Footwall and Ultramafic zones, with the result that the mineralization in the Vein Zones and Main Zone has not been drill targeted this past year. Both are open down plunge to the west below 400 metres depth and both of these zones remain priority targets and will be drilled in this current program.

Timmins West Gold Deposit Resource Expansion Drilling

In a previous news release (May 30, 2005) it was reported that the Ultramafic and Footwall mineralization extends an additional 450 metres down plunge past the current indicated resource and remains open down plunge beyond the current drilling. Resource drilling, reported herein, and previously reported in the Company's August 20, 2005 and November 4, 2005 news releases, has focused on infilling this 450 metre section from Section 4600E to Section 4350E.

Drilling has continued on sections 4550E and 4450E, and has been initiated on Section 4400E. Each section consists of two to three pilot holes and a series of branch holes targeting the down plunge continuation of the Footwall and Ultramafic zones. Drilling continues to infill at approximately 50 metre intervals, and once completed, will extend the indicated resource an additional 450 metres down plunge from section 4600E, the deepest section used in the previous resource calculation to Section 4350E, the deepest section drilled to date.

To date, three pilot holes and eight branch holes have been completed on Section 4550E, a 50 metre step out to the west of section 4600E. Three holes (TG05-74a, -74b, and -74c) targeted the lower portion of the section (see November 4, 2005 news release). Holes TG05-88, -88a, and -88b successfully intersected the upper portion or fold nose region of the Ultramafic Zone, while TG05-77c, -77d, -77e, and -77f were completed on the middle portion of the section. Of these, assay results are reported for TG05-88, -88a, -77c, -77d, and -77e while assays are pending for holes TG05-88b, and -77f. At the time of reporting, hole TG05-88c was still in progress.

Drilling on Section 4450E included holes TG05-64g (pilot hole), and wedge holes TG05-64h, -64j, and -64k, targeting the upper portion or fold nose region of the Ultramafic Zone. Pilot hole TG05-75 was drilled into the lower portion of section 4450E, and was used as a platform for branch holes TG05-75a, -75b, and -75c. Assay results are reported for TG05-64g, and -75a. Assays are pending for holes TG05-64j, and -75b. No significant results are reported for holes TG05-64h (overshot the mineralized zone), and TG05-75 (deep pilot hole that undercut the mineralized zone), while holes TG05-64k, and -75c are still in progress.

On January 13, 2006, drilling was initiated on Section 4400E. Pilot hole TG06-96 is in progress targeting the lower portion of the Ultramafic Zone.

Seven new holes have been drilled with the exploration drill and one is currently in progress. Hole TG05-83 tested structural targets east of the main surface showing, and four holes tested the up plunge continuation of the ultramafic suite from areas of known mineralization (holes TG05-84 and -89 to -91). Holes TG05-92 and -93 were abandoned due to excessive deviation and TG05-95 is still in progress. Results are in for three of the holes with no significant assays to report, while two other holes have assays pending.



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Assay(ii)
--------------
Gold Gold
Intersection(i) (cut) (uncut)
---------------- (grams (grams
Hole From To Length per per
No. Section (metres) (metres) (metres) tonne) tonne) Zone
---------------------------------------------------------------------
TG05-88 4550E 857.55 861.40 3.85 9.75 10.11 UM Zone
---------------------------------------------------------------------
including 863.00 863.75 0.75 12.69 12.69 UM Zone
---------------------------------------------------------------------
892.90 893.50 0.60 9.87 9.87 UM Zone
---------------------------------------------------------------------
904.85 908.25 3.40 6.65 6.65 UM Zone
---------------------------------------------------------------------
including 906.30 908.25 1.95 10.51 10.51 UM Zone
---------------------------------------------------------------------
915.75 916.90 1.15 11.97 11.97 UM Zone
---------------------------------------------------------------------
929.50 940.20 10.70 6.21 6.21 UM Zone
---------------------------------------------------------------------
including 930.90 934.30 3.40 12.57 12.57 UM Zone
---------------------------------------------------------------------
TG05-88a 4550E 864.70 865.60 0.90 9.07 9.07 Footwall
Zone
---------------------------------------------------------------------
911.90 921.60 9.70 11.29 11.29 UM Zone
---------------------------------------------------------------------
including 911.90 917.50 5.60 15.78 15.78 UM Zone
---------------------------------------------------------------------
932.50 936.75 4.25 6.51 6.51 UM Zone
---------------------------------------------------------------------
including 935.05 936.25 1.20 19.10 19.10 UM Zone
---------------------------------------------------------------------
967.15 974.20 7.05 14.27 19.31 UM Zone
---------------------------------------------------------------------
including 967.15 969.45 2.30 17.55 23.76 UM Zone
---------------------------------------------------------------------
including 970.95 974.20 3.25 18.43 24.96 UM Zone
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TG05-88b 4550E Hole completed - assays pending
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TG05-77c 4550E 898.10 900.20 2.10 12.82 15.75 Footwall
Zone
---------------------------------------------------------------------
including 898.10 899.40 1.30 18.94 23.67 Footwall
Zone
---------------------------------------------------------------------
964.40 966.50 2.10 7.20 7.20 Footwall
Zone
---------------------------------------------------------------------
TG05-77d 4550E 950.30 953.25 2.95 9.41 12.09 Footwall
Zone
---------------------------------------------------------------------
including 950.70 952.25 1.55 16.87 21.98 Footwall
Zone
---------------------------------------------------------------------
TG05-77e 4550E 893.20 894.35 1.15 9.41 9.41 Footwall
Zone
---------------------------------------------------------------------
953.60 955.35 1.75 20.73 20.73 UM Zone
---------------------------------------------------------------------
982.60 988.90 6.30 4.36 4.36 UM Zone
---------------------------------------------------------------------
including 983.40 985.30 1.90 6.86 6.86 UM Zone
---------------------------------------------------------------------
996.70 998.30 1.60 4.62 4.62 UM Zone
---------------------------------------------------------------------
1023.15 1024.75 1.60 22.63 178.82 UM Zone
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including 1024.05 1024.75 0.70 50.00 407.00 UM Zone
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TG05-77f 4550E Hole completed - assays pending
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TG05-64g 4450E 1123.00 1125.00 2.00 4.57 4.57 Footwall
Zone
---------------------------------------------------------------------
including 1123.00 1124.45 1.45 5.84 5.84 Footwall
Zone
---------------------------------------------------------------------
1129.00 1134.95 5.95 4.82 4.82 Footwall
Zone
---------------------------------------------------------------------
including 1130.90 1132.25 1.35 13.51 13.51 Footwall
Zone
---------------------------------------------------------------------
1170.90 1173.50 2.60 4.63 4.63 UM Zone
---------------------------------------------------------------------
including 1171.45 1173.00 1.55 6.58 6.58 UM Zone
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TG05-64h 4450E Hole completed - no significant results
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TG05-64j 4450E Hole completed - assays pending
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TG05-75 4450E Hole completed - no significant results
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TG05-75a 4450E 1285.20 1286.60 1.40 7.98 7.98 UM Zone
---------------------------------------------------------------------
1288.80 1292.20 3.40 8.45 8.45 UM Zone
---------------------------------------------------------------------
including 1289.80 1291.70 1.90 14.16 14.16 UM Zone
---------------------------------------------------------------------
1307.10 1321.45 14.35 3.65 3.65 UM Zone
---------------------------------------------------------------------
including 1307.10 1312.60 5.50 5.01 5.01 UM Zone
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TG05-75b 4450E Hole completed - assays pending
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(i) Interval reported is core length.
(ii) All Footwall Zone assays cut to 30 grams gold per tonne and
Ultramafic Zone assays cut to 50 grams gold per tonne.


All of the Company's Timmins area drill programs were shut down over the Christmas break from December 21, 2005 to January 9, 2006. Presently, five drills are in operation on the Timmins West Property. One drill is running on the DeSantis Gold Property (see December 8, 2005 news release), with a second rig scheduled to commence by the third week of January. Drilling will resume on the Thunder Creek Gold Property to test new gold targets and follow up on previously reported intersections (see February 14, 2005 news release).

The results of the first phase drill program on the Company's 100% owned Vogel Gold Property were released on December 5, 2005. On December 1, 2005 Lake Shore announced its acquisition of the Schumacher Estate Property, a gold property that lies immediately adjacent to the Vogel Property. Through this acquisition the Company has consolidated 1.6 kilometres of the key mineralized horizon that hosts the Hoyle Pond, Bell Creek, Owl Creek and Vogel gold deposits. A detailed compilation program is currently underway merging both historical and present day data from both properties. This will be followed later in the quarter by a resource expansion drill program that will also follow up on the recent discovery of high-grade gold bearing flat veins at Vogel, and trace them onto the Schumacher ground where they are known to occur.

The exploration programs are being supervised by Dr. Michael J. Byron, P.Geo, the Qualified Person for the Company.

Lake Shore Gold is exploring for gold and base metals in the Archean Superior Province of Ontario and Quebec. The Company has a strong treasury and no long-term debt.

Forward-Looking Statement

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 statement.

Contact Information

  • Lake Shore Gold Corp.
    Anne Hite
    Investor Relations
    (604) 669-3533
    (604) 688-5175 (FAX)
    or
    Lake Shore Gold Corp.
    Brian R. Booth
    President
    (705) 525-0992
    (705) 525-7701 (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