Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

May 05, 2009 05:00 ET

Lake Shore Gold Reports Additional High-Grade Intercepts at Thunder Creek, Confirms 175 Metre Minimum Strike Length for Rusk and Porphyry Zones and Identifies New Sub-Zone at Depth

- TC09-68a intersects 10.09 grams per tonne (gpt) gold (Au) over 4.70 m, including 17.16 gpt Au over 2.25 m - TC09-69a intersects 7.97 gpt over 19.45 m in Rusk Zone, including 9.88 gpt over 6.90 m and 11.44 gpt over 6.00 m - TC09-70 extends mineralization 125 metres northeast returning 11.26 gpt over 1.35 m and 7.32 gpt over 1.20 m - Multiple zones of mineralization extended to minimum 175 metre strike length

TORONTO, ONTARIO--(Marketwire - May 5, 2009) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced results for one new hole and two wedge holes (1,152 metres) as part of its ongoing 22,000 metre diamond drill program on the Company's Thunder Creek property, located immediately adjacent to Lake Shore Gold's 100%-owned Timmins Mine project. The Company holds a 60% interest in the property, and is the operator of Thunder Creek Joint Venture with West Timmins Mining Inc.

The results include wedge Hole TC09-68a with an intercept of 10.09 gpt Au over 4.70 m, including 17.16 gpt over 2.25 m and wedge Hole TC09-69a, which intersected 7.97 gpt over 19.45 m in the Rusk Horizon, including 9.88 gpt over 6.90 m and 11.44 gpt over 6.00 m. Both wedge holes plus step out hole TC09-70 also intersected multiple Porphyry horizons similar to those previously announced in holes TC09-68 and TC09-69 (see press release dated March 31, 2009), confirming a minimum 175 metre strike length for these Porphyry zones and the Rusk zone along a north-northeasterly trend.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "Drilling on the property continues to provide confirmation of the significant potential and extent of the multiple horizons within the Rusk and Porphyry zones as well as potential for new subzones to the south and to depth at Thunder Creek. These latest results significantly expand the known mineralization on the property to the west and at depth and demonstrate that the mineralized zones at Thunder Creek are open in all directions, and that the potential exists to find new zones and ultimately a large deposit. The drill program is continuing with two drills, and results from six additional holes are pending."

Hole TC09-68a is a wedge-branch designed to re-drill a two metre section of core lost in the initial pilot Hole TC09-68. TC09-68a re-intersected the Rusk Zone and was extended for a second intersection through the porphyry unit. Hole TC09-68a also included the discovery of a new sub-zone at depth in the volcanic rocks approximately 90 metres below the previously reported deepest intercept. This new deeper intercept in Hole TC09-68a of 5.04 gpt over 1.50 m suggests potential for additional stacked zones of mineralization below the Porphyry zones, which will be targeted in future drilling.

Hole TC09-69a is a wedge-branch, designed to bypass broken rods in pilot Hole TC09-69 (8.86 gpt over 24.85 m, including 19.55 gpt over 6.00 m as announced in a press release dated March 31, 2009) and cover untested parts of the Porphyry below the broken rods. The new results in TC09-69a not only strongly confirm the previous intersection of the Rusk Zone in TC09-69, but indicates the presence of multiple horizons of mineralization within the untested section of the Porphyry similar to those in TC09-68a. The location and width of the Rusk zone and the new Porphyry Zones in TC09-69a suggests that all of these horizons extend strongly to the west and line up well with those in TC09-68 and TC09-70. The new value from TC09-69a from the Rusk zone was 7.97 gpt over 19.45 m including 19.95 gpt over 2.45 m and the new values from the Porphyry zone are 7.76 gpt over 2.5 m, 11.33 gpt over 2.00 m and 7.83 gpt over 1.50 m.

Hole TC09-70 was designed to explore for the extension of the Rusk and Porphyry Zones, over 120 metres east of TC09-68 and -68a, and over 200 metres downplunge from TC09-54 (11.20 gpt over 10.40 m in the Porphyry - see press release dated December 16, 2008). Numerous felsic dykes were noted within the Rusk Horizon, and while alteration and deformation remain locally very strong, no significant mineralization was noted, possibly suggesting a steepening in the plunge of the shoot, or a change in geometry of the Rusk Zone. Another 50 metres further past the Rusk Horizon, the Porphyry Zone was successfully intersected, characterized by strong hematization, local pyrite disseminations, quartz stockwork, molybdenite and visible gold. The porphyry assayed 2.25 gpt over 13.00 m, including 11.26 gpt over 1.35 m and another zone assaying 7.32 gpt over 1.20 m.

Mr. Makuch added: "Going forward, we intend to double the number of drills on the Thunder Creek property over the next few months, and add a drill on surface on our 100% owned Timmins property, which is contiguous and immediately to the north of Thunder Creek, in order to test the extension of the same mafic-sedimentary rock contact hosting the Rusk Zone. It is important to understand that the mineralization identified on the Thunder Creek property in both the Rusk and Porphyry zones is located approximately 800 metres from Lake Shore Gold's Timmins Mine shaft. The Timmins Mine shaft is currently being sunk to a depth of 710 metres to develop the Company's 100% owned Timmins deposit. At this depth, the shaft capacity is in excess of 5,000 tonnes per day, and was purposely over designed in order to provide the Company flexibility to support underground exploration programs and to develop and exploit resources and reserves at the Timmins Mine."

In August of 2008, Lake Shore Gold announced the beginning of a 22,000 metre diamond drilling program on the Thunder Creek property. The program was designed to be carried-out intermittently with one to two drill rigs, and will extend to approximately mid-2009. There are currently two drills working on the property. Over 13,000 metres have been completed, with results from the first nine holes (4,000 metres) having been released in a press release on December 16, 2008 and an additional six holes (4,093 metres) being announced in a press release dated March 31, 2009. Six additional holes are in the process of being sampled and assayed.

The Thunder Creek property is a joint venture, with Lake Shore Gold owning a 60% interest and acting as project operator, with the remaining 40% interest owned by West Timmins Mining Inc.

Quality Control

The Company's Qualified Person ("QP") for the Thunder Creek property is Jacques Samson, 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 a quality control program to ensure best practices in the sampling and analysis of drill core. Assays have been completed using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold, another pulp is taken and fire assayed with a gravimetric finish. Zones with visible gold are tested by pulp metallic analysis. 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 for preparation at ALS Chemex Prep Lab located in Timmins, Ontario, and the pulps shipped to ALS Chemex Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registered laboratory preparing for ISO 17025 certification.

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 Number From To Length(i) Gold Section Comments
(m) (m) (m) (g/T)
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TC09-68 894.00 897.00 3.00 7.41 9550N Rusk Horizon
incl. 895.45 897.00 1.55 11.41

897.00 899.00 2.00 lost core redrilled;
see TC09-68a

899.00 900.50 1.50 3.87


906.40 1028.55 122.15 1.81 Porphyry Zone
incl. 906.40 931.10 24.70 3.76
incl. 915.45 929.10 13.65 5.80
incl. 915.45 918.60 3.15 7.76
incl. 920.90 925.60 4.70 3.15
incl. 927.60 929.10 1.50 25.49
incl. 952.90 965.75 12.85 5.29
1055.30 1056.80 1.50 5.04 Other
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TC09-68a 895.30 900.00 4.70 10.09 9500N Rusk Zone
incl. 896.30 898.55 2.25 17.16
907.20 941.00 33.80 2.17 Porphyry Zone
incl. 908.30 917.25 8.95 6.62

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TC09-69 781.40 806.25 24.85 8.86 Rusk Zone
incl. 783.20 787.25 4.05 10.88
incl. 789.20 795.20 6.00 19.55
incl. 801.00 806.25 5.25 7.95

810.45 855.00 44.55 1.00 Porphyry Zone
incl. 810.45 810.90 0.45 17.45
incl. 853.70 854.10 0.40 11.25
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TC09-69a 776.85 777.40 0.55 5.73 Rusk Zone
784.10 803.55 19.45 7.97 Rusk Zone
incl. 784.60 791.50 6.90 9.88
or incl. 784.60 787.05 2.45 19.95
incl. 797.15 803.15 6.00 11.44
805.70 873.20 67.50 1.70 Porphyry Zone
incl. 815.20 817.70 2.50 4.76
and incl. 823.20 825.70 2.50 7.76
and incl. 846.20 848.20 2.00 11.33
and incl. 856.20 857.70 1.50 7.83
906.60 907.60 1.00 4.65 Other
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TC09-70 898.80 911.80 13.00 2.25 Porphyry Zone
incl. 899.30 900.65 1.35 11.26
and incl. 904.20 905.40 1.20 7.32

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(i) Due to uncertainties in zone orientations, true widths are not known
at this time. Assays reported are uncut


To view Figure 1 (Cross Section): http://media3.marketwire.com/docs/lsg1.pdf

To view Figure 2 (Long Section): http://media3.marketwire.com/docs/lsg2.pdf

To view Figure 3 (Plan View): http://media3.marketwire.com/docs/lsg3.pdf

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