Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

July 09, 2008 18:01 ET

Lake Shore Gold Intersects New Gold Zone and Extends Mineralization at Bell Creek

TORONTO, ONTARIO--(Marketwire - July 9, 2008) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from the first five holes of its ongoing resource expansion drill program at the 100%-owned Bell Creek property (the "Property"), including the discovery of a new gold zone (the "South Zone"), and the extension of the known Bell Creek gold mineralization by approximately 350 metres below the existing Bell Creek resource and by approximately 175 metres to the west. The results highlight the potential to identify new sources of gold mineralization on the Property and to increase the known resource at the Bell Creek mine to depth. The current program represents the first time that exploration drilling has tested below the 500 metre level in the area of the existing Bell Creek resource and below the 300 metre level at other areas of the Property.



Highlights:
New South Zone (BC-08-02)
356.00 - 362.05: 5.39 Au g/t over 6.05 metres
Including 356.00 - 357.70: 11.70 Au g/t over 1.70 metres

Extension of Bell Creek West horizon (BC-08-05)
279.00 - 287.10: 5.95 Au g/t over 8.10 metres
Including 279.50 - 279.95: 8.65 Au g/t over 0.45 metres
Including 281.00 - 281.70: 9.28 Au g/t over 0.70 metres
Including 286.30 - 287.10: 33.26 Au g/t over 0.80 metres


The new South Zone is located approximately 450 metres to the south of the current Bell Creek resource. The South Zone is associated with a stockwork system of quartz carbonate veining in mafic volcanics and is similar to other mineralized systems along the "New Mine Trend" in Timmins which includes the Bell Creek and Owl Creek/Hoyle Pond mines.

Drilling to the west of the Bell Creek resource intersected new veins in an area where there has been no previous mining and that lies within 100 metres of two historic drill holes, which included intersections of 117.9 grams per tonne over 0.7 metres and 22.9 grams per tonne over 0.6 metres. In addition, drilling at depth has demonstrated that the existing Bell Creek gold structure extends well below the current resource. While high grades were not encountered from the very limited drilling completed to date, the widths at depth are significant and aggressive exploration work is planned in order to thoroughly explore this structure for high-grade sections.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "From just a small number of widely spaced drill holes we have already seen encouraging results confirming our belief that there is excellent potential for expanding resources within the current gold system at Bell Creek and to find new sources of gold such as the South Zone. Four additional holes have been completed, all of which confirmed that the horizon hosting the veins system extends to depth (visible gold identified in three of these holes, assay results are pending). We are continuing our aggressive resource expansion drill program on the Bell Creek property, with two drill holes in progress, and will continue drilling with at least two rigs over the balance of the year."

Mr. Makuch added: "Bell Creek resource expansion drilling and exploration is just one component of our growth program where progress is being made. We remain on track with our 100%-owned Timmins West project, where ramp development and shaft sinking are expected to commence during the third quarter leading to initial production from shallow ore by early in 2009, and are advancing refurbishing work at the Bell Creek mill, with the mill's re-opening expected by the fourth quarter of this year. The mill is located on the Bell Creek minesite. Very importantly for Lake Shore Gold and its shareholders, we remain fully financed to complete both our current development projects as well as our ongoing exploration activities."



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HOLE Length Gold
NUMBER From (m) To (m) (m) (gms/Tonne) Zone
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Down dip extension of
Bell Creek North A
BC-08-01 992.35 992.90 0.55 3.29 horizon
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997.00 998.20 1.20 1.54
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1009.30 1010.10 0.80 4.27
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BC-08-02 356.00 362.05 6.05 5.39 NEW South Zone
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incl 356.00 357.70 1.70 11.70
--------------------------------------------------

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Down dip extension of
BC-08-03 1115.50 1120.00 4.50 1.48 known Bell Creek resource
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BC-08-04(i) Abandoned
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Extension of Bell
BC-08-05 279.00 287.10 8.10 5.95 Creek West horizon
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incl 279.50 279.95 0.45 8.65
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and incl 281.00 281.70 0.70 9.28
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and incl 286.30 287.10 0.80 33.26
--------------------------------------------------

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485.15 486.25 1.10 4.62
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Down dip extension Bell
603.05 604.25 1.20 2.53 Creek North A horizon
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Down dip extension Bell
609.80 611.25 1.45 6.91 Creek North A horizon
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BC-08-06 Assays pending (visible gold noted)
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BC-08-07b Assays pending (visible gold noted)
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BC-08-08 Assays pending
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BC-08-09 Assays pending (visible gold noted)
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BC-08-09a In progress
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BC-08-10 In progress
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(i)Hole (#4) was abandoned due to excessive directional deviation from
target


The true width of the zones is not known at this time as further drilling is required.

Quality Control

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 greater than five grams per tonne 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 Swastika Laboratories.

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.

About Lake Shore Gold

Lake Shore Gold Corp. is a mineral development and exploration company that is rapidly moving towards gold production through a portfolio which includes an existing processing facility and a number of quality mineral properties located in the Timmins gold mining district of northern Ontario and Quebec. The Company has completed a pre-feasibility study and is moving forward with an advanced exploration program at its Timmins West property, is progressing refurbishing work at its 100%-owned Bell Creek mill and is continuing drilling programs at a number of prospective properties. The Company's shares trade on the Toronto Stock Exchange under the symbol LSG.

Forward-looking Statements

Certain statements in this press release relating to exploration work at the Bell Creek property 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 demand for products develops as anticipated, that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts and supplies, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, and that there are no material unanticipated variations in the cost of energy or materials or supplies. 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 Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. 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 regulatory filings which are posted on sedar at www.sedar.com.

To view diagrams accompanying this press release please click on the following:

Bell Creek New South Zone: http://media3.marketwire.com/docs/lsgnsz1.pdf

Bell Creek Western Extension: http://media3.marketwire.com/docs/lsgwe1.pdf

Bell Creek Longitudinal Section: http://media3.marketwire.com/docs/lsgls.pdf

Contact Information

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