Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

August 24, 2009 06:30 ET

Lake Shore Gold Reports High-Grade Intercepts From Underground Drilling at Timmins Mine

- Intercepts include 12.87 grams per tonne (gpt) gold (Au) over 19.70 metres (m) (including 36.27 gpt over 3.30 m), 11.23 gpt over 9.00 m (including 21.13 gpt over 2.00 m), and 6.13 gpt over 8.40 m from the Ultramafic Zone and 5.38 gpt over 9.60 m (including 19.74 gpt over 1.40 m) from the Footwall Zone - Drilling continuing from 525 m and 650 m levels - Development on the 650 m Level cross-cutting Ultramafic Zone, bulk sampling to commence - Surface drilling program underway to test deep targets

TORONTO, ONTARIO--(Marketwire - Aug. 24, 2009) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from four underground holes (906.5 m) from the 525 m and 650 m levels of the Company's 100% owned Timmins Mine Property. All holes were drilled in a northerly direction and designed to delineate the Ultramafic and Footwall Zones between these two elevations, which to this point had been outlined by wider spaced surface holes. All four holes intersected zones of mineralization consistent in grade and width with intersections from previous surface drilling. In addition, holes 650-012 and 525-006 intersected high-grade mineralization in areas outside the existing resource and 650-001 and 650-002 intersected mineralization on the edge of existing resource blocks for the Footwall Zone, demonstrating the potential to add new resources on the property.

At the present time, 24 holes and 3,804 m of diamond drilling have been completed on the 525 m Level and 17 holes and 3,399 m of diamond drilling have been completed on the 650 m Level. Holes 650-002, 650-012 and 650-001 were drilled cross-sectional to the Ultramafic Zone to delineate the zone at 15 to 20 m centres. Hole 650-002 intersected 12.87 gpt over 19.70 m, including 36.27 gpt over 3.30 m. Hole 650-012 intersected 11.23 gpt over 9.00 m, including 21.13 gpt over 2.00 m and 6.71 g/t over 1.00 m. Hole 650-001 intersected 5.81 gpt over 6.35 m, including 8.49 gpt over 2.60 m.

Tony Makuch, President and CEO of Lake Shore Gold, commented: "These results from our first underground drilling program to test the Ultramafic Zone at Timmins Mine are very encouraging and confirm the grades and widths established from previous surface drill programs, but at much closer spaced intervals. In addition, holes 650-012 and 525-006 were particularly exciting, as they both intersected high-grade mineralization outside of the known resource and extend the vertical height of the Ultramafic Zone in this cross section to a minimum of 150 metres. Drilling from both the 525 and 650 m levels is continuing and will include pursuing a number of highly prospective targets off of the 525 and 650 m levels that to date have been largely unexplored including the continuation of the ultramafic rock unit hosting the Ultramafic Zone as it extends to the east and southeast of the mine. Our development from the shaft on the 650 m Level is also advancing very well and we are about to cross-cut the Ultramafic Zone, with bulk sampling set to commence over the next several days. The area around the 650 m Level in the Ultramafic Zone is expected to be an important source of feed for the Company's 100% owned Bell Creek Mill for at least the next year.

"In addition to our underground drilling at Timmins, we also have three surface drills working at the property to explore the property at depth where previous drill spacing becomes even wider and the main geologic structures hosting mineralization continue. Given this and values such as 9.54 gpt over 4.50 m and 22.75 gpt over 3.50 m in Hole TG06-96c, which was one of the deepest holes drilled on the property, the potential to add new resources at the mine is considered excellent."

Mineralization in the Ultramafic and Footwall Zones occurs as a series of lenses surrounding a steep westerly plunging fold nose formed at the contact between mafic and ultramafic rocks. Closely associated with the mineralization is quartz veining, abundant pyrite, strong alteration, and local visible gold Besides confirming grades obtained by previous surface drilling, mineralized intercepts in this recently completed underground diamond drilling correlate well with the predicted locations of the zones as interpreted from the original more widely spaced surface drill holes.

In addition to intercepts within the Ultramafic Zone, the recent drilling has intersected mineralization in the main Footwall Zone, as well as additional intersections in multiple vein zones collectively known as the footwall zones. Some of these intersections include Hole 650-001 with 5.30 gpt over 1.40 m, 4.13 gpt over 1.40 m and 5.81 gpt over 1.10 m, Hole 650-002 with 5.38 gpt over 9.60 m, including 19.74 gpt over 1.40 m and 8.05 gpt over 1.10 m. Results from the Footwall Zone in 650-012 remain pending.

Quality Control

The Company's Qualified Person ("QP") for the underground drill program at the Timmins Mine property is Heather Miree, P.Geo. As QP, she 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 implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. Samples are obtained from BQTK-sized diamond drill core, sawn in half, with one half being retained in a secure location and the other half submitted for sample preparation and gold analysis by ALS Chemex. ALS Chemex is an ISO 9001-200 registered laboratory, preparing for ISO 17025 certification. Drill core samples are transported in security-sealed bags to ALS Chemex's Timmins Sample Preparation Facility. Sample preparation is completed in Timmins, and the prepared sample pulps are then transported to ALS Chemex's analytical laboratory in Vancouver, BC. Gold grades are obtained on all samples via Fire Assay with Atomic Absorption finish, using 50g aliquots. For samples that return a gold content greater than 3 gpt, the sample is reanalyzed via Fire Assay with Gravimetric finish, again using a 50g aliquot.

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, was refurbished to a capacity of 800 tonnes per day as of the end of 2008, with the Mill's capacity currently being increased to 1,500 tonnes per day. The Company recently commenced an underground 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 TSX under the symbol LSG.

Summary of Underground Drill Results for Holes 650-001, 650-002, 650-012, and 525-006



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Hole Section From To Grade Width Zone
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Number m m gpt m
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650 - 001 4675 E 109.75 116.10 5.81 6.35 Ultramafic Zone
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incl 113.50 116.10 8.49 2.60
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117.45 118.85 3.35 1.40 Ultramafic Zone
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154.90 156.30 5.30 1.40 Footwall Zone
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161.65 162.10 3.63 0.45 Footwall Zone
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172.60 173.20 6.26 0.60 Footwall Zone
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177.35 178.75 4.13 1.40 Footwall Zone
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181.60 182.70 5.81 1.10 Footwall Zone
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223.30 224.00 3.30 0.70 Upper Footwall Zone
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650-002 4675 E 94.60 114.30 12.87 19.70 Ultramafic Zone
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incl 107.00 110.30 36.27 3.30
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118.30 119.30 3.22 1.00 Ultramafic Zone
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150.60 165.10 5.38 9.60 Footwall Zone
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incl 150.60 152.00 19.74 1.40
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and incl 164.00 165.10 8.05 1.10
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173.10 174.80 3.70 1.70 Footwall Zone
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525-006 4700 E 43.20 44.80 6.02 1.60 Ultramafic Zone
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48.70 57.10 6.13 8.40 Ultramafic Zone
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incl 55.50 56.50 24.50 1.00
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123.00 124.00 3.49 1.00 Footwall Zone
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650-012 4675 E 114.90 115.40 4.17 0.50 Ultramafic Zone
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124.60 125.60 6.71 1.00 Ultramafic Zone
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141.00 150.00 11.23 9.00 Ultramafic Zone
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incl 142.10 144.10 21.13 2.00
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Remainder of
samples in hole
not yet rec'd
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Note: True widths are not determined at this time.
Assays reported are uncut.


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.

To view Figure 1. Plan View, please visit the following link: http://media3.marketwire.com/docs/plan0824.pdf

To view Figure 2. Cross Section, please visit the following link: http://media3.marketwire.com/docs/cross0824.pdf

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