Lake Shore Gold Corp.
TSX : LSG
NYSE MKT : LSG

Lake Shore Gold Corp.

September 25, 2014 06:00 ET

Lake Shore Gold Reports New Zones of High Grade Mineralization, With Strong Potential to Increase Reserves at Bell Creek

TORONTO, ONTARIO--(Marketwired - Sept. 25, 2014) -

  • Drilling between 775 and 925 levels identifies new zones of high-grade mineralization within untested gaps of the Labine Deposit North A and NA2 Zones; significant assays include 12.68 grams per tonne ("gpt") over 18.5 metres ("m"), 10.36 gpt over 10.5 m, 10.10 gpt over 7.6m, 5.11 gpt over 9.5m, and 6.04 gpt over 13.0m.

  • Drilling below 925 level confirms high grade mineralization extending to depth with potential to add to existing reserves; significant assays include 9.98 gpt over 10.3m, 5.60 gpt over 16.9m, 9.79 gpt over 9.6m and 3.09 gpt over 23.3m, including 6.81 gpt over 7.4m.

  • Drilling between 685 and 775 levels continues to confirm grade and width of zones in areas close to active mining; intercepts include 6.64 gpt over 13.2m, 10.18 gpt over 5.7m, 7.76 gpt over 6.0m, 6.05 gpt over 9.1m, 6.92 gpt over 6.7m, 6.83 gpt over 7.8m.

  • Additional drilling to confirm and expand zones below 775 level ongoing with 3 drills. Work has commenced on pre-feasibility study to increase reserves and re-activate the BC shaft.

Lake Shore Gold Corp. (TSX:LSG)(NYSE MKT:LSG) ("Lake Shore Gold" or the "Company") today announced the results from 65 holes (13,900 metres) from drilling the Labine Deposit at the Bell Creek Mine. The holes are part of an overall program consisting of 31,230 metres being drilled at the Bell Creek Mine in 2014 to infill and expand resources and increase total reserves. The key focus of the program is on the area below the 775 level, which is the current lower limit for reserves, and the 1050 level. Total drilling at the Bell Creek Mine to the end of August 2014 is 92 holes (19,949 metres), with results from 16 holes ( 3,718 metres) being previously reported ( see press release dated March 26,2014).

Tony Makuch, President and CEO of Lake Shore Gold, commented: "Today's results continue to confirm a substantial resource at the Bell Creek Mine Labine Deposit, with excellent potential for higher grades, expansion and conversion to reserves for mining. As an operation, Bell Creek has been performing well in 2014 with total production in the first half of the year totaling 129,000 tonnes grading 5.3 gpt (20,900 ounces). The mine is on track to produce approximately 40,000 ounces in 2014, an increase of over 40% from 2013. Work has commenced on a pre-feasibility study to update reserves and resources and evaluate deepening the mine, including re-activation of the Bell Creek shaft and extension of the ramp to depth. Completion of the study is planned for early in 2015."

Key intersections being reported today are; 12.68 gpt over 18.5m, including 21.82 gpt over 6.2m in BC745-939B, 10.36 gpt over 10.5 m, including 23.86 gpt over 2.1m in BC745-893, 6.04 gpt over 13.0m from BC745-889 and 5.11 gpt over 9.50m from BC745-894. The drilling, completed from the 745 level, was concentrated towards an untested gap in the central portion of the North A Zone between the 775 and 925 levels (Table 1 and Figures 1 and 2). The best results appear to coincide with a major northeast trending flexure in the North A Zone, which is referred to as the "Link Zone" that has now been traced from surface to at least the 1050 level.

Other significant intercepts in the area between the 775 and 925 level include 10.10 gpt over 7.6m in BC730-1028, 8.55 gpt over 3.5m in BC730-1025, 6.02 gpt over 2.0m in BC610-978 and 7.80 gpt over 2.9m in BC610-977. These intercepts are from holes drilled from the 730 and 610 levels and piercing the east edge of the North A and NA2 zones near the 730 level, and demonstrate excellent potential for additional high grade mineralization in an area of limited drilling.

Additional results being announced include 9.98 gpt over 10.3m and 20.32 gpt over 2.2m in BC610-985, 5.60 gpt over 16.90m in BC610-984, 9.79 gpt over 9.6m, 9.14 gpt over 4.7m and 13.93 gpt over 2.1m in BC610-983, and 3.09 gpt over 23.3m, including 6.81 gpt over 7.4m in BC610-975. The drilling was completed from a new drill platform on the 610 level and is part of an overall program of infill and expansion drilling targeting the Labine Zone between the 775 and 1050 levels. These results are in line with intercepts from previous wide spaced drilling in the same area and continue to indicate excellent continuity and grades for mineralization.

Other results included are from a series of holes drilled between the 685 and 775 levels and nearby to active mining and include 6.64 gpt over 13.2m in BC700-922A, 10.18 gpt over 5.7m in BC730-935, 7.76 gpt over 6.0m in BC700-916, 6.05 gpt over 9.1m in BC715-886, 6.92 gpt over 6.7m in BC730-874A and 6.83 gpt over 7.8m in BC730-927C.

Total resources at the mine as of the latest update at year end 2013 stood at 4.5 million tonnes, grading 4.6 gpt (672,047 ounces) in the Indicated category and 5.9 million tonnes, grading 4.6 gpt (872,058 ounces) in the Inferred category. Reserves as at the end of 2013 were estimated at 706,939 tonnes @ 4.7 gpt (106,573 ounces) with all reserves being located above the 775 level. The next scheduled update for reserves and resources is at the end of 2014 and in conjunction with the new pre-feasibility study.

Drilling is in progress at the Bell Creek Mine with three drills at this time, that continue to focus on areas below the 775 level. The current plans are to complete an additional 11,281 meters of drilling before the end of 2014.

Quality Control

The Qualified Person ("QP") for Lake Shore Gold's drill program at the Bell Creek Mine is Eric Kallio, P.Geo. Mr. Kallio, as a QP, has prepared or supervised the preparation of the scientific or technical information for the property and verified the data disclosed in this press release. Mr. Kallio is an employee of Lake Shore Gold.

Lake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. Normal practice for all programs has been to insert three Quality Control samples including one blank, one certified standard and one reject duplicate at a frequency of every forty drill core samples submitted. The blanks and the certified standards are checked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been completed using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than ten grams per tonne gold, the remaining pulp is taken and fire assayed with a gravimetric finish.

Underground drilling at the Bell Creek Mine utilizes three different core sizes including; LTK-48 with a core diameter of 35.3mm (Bazooka drill), BQ which has a core diameter of 36.4mm and NQ with a core diameter of 47.6mm (electric drills). Sampling of drill core is conducted in intervals according to geological control (minimum 30cm, maximum 1.5m, averaging 1.0m) with all core being whole core sampled and pulps being stored in cold storage. For select drill holes, the core is saw cut andthe remaining half is stored in a secure location.

Gold analysis for underground drill core at Bell Creek has utilized two analytical laboratories. All underground drill core is transported in security sealed bags for analysis at either Activation Laboratories (1752 Riverside Drive, Timmins) or Lake Shore Gold Corp.'s Bell Creek Complex mill laboratory. Activation Laboratories Ltd. in Timmins is ISO 9001 certified and follows their fully certified main Ancaster, Ontario lab analytical procedures (working towards ISO 17025 CANP4E in early 2014). Lake Shore Gold Corp's Bell Creek mill laboratory is not ISO certified.

About Lake Shore Gold

Lake Shore Gold is a gold mining company that is in production and is generating net free cash flow from its wholly owned operations in the Timmins Gold Camp. The Company is in production at both the Timmins West and Bell Creek mines, with material being delivered for processing to the Bell Creek Mill. In addition to current operations, the Company also has a number of highly prospective projects and exploration targets, all located in and around the Timmins Camp. The Company's common shares trade on the TSX and NYSE MKT under the symbol LSG.

FORWARD-LOOKING STATEMENTS

Certain statements in this press release relating to the Company's expected production levels, production growth, exploration activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or "forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." 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 be consistent with models and 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, delays in development or mining and 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 the Company's most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar at www.sedar.com, or the Company's most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.

Table 1: List of Significant Drill Intercepts from Recent Drilling

HOLE-ID From
(m)
To
(m)
Zone
Width
(m)
Au
Comp
(g/t)
Zone East Elev
Above 775mL
BC610-868 141.0 143.9 2.90 10.13 NA2
BC610-869 192.80 195.80 3.00 4.53 NA 5981 1588
BC610-870 189.10 191.90 2.80 4.09 NA 5988 1604
BC700-913 83.3 86.3 3.00 15.46 NA 5800 1581
BC700-914 82.7 84.9 2.20 7.21 NA 5800 1565
90.0 96.1 6.10 3.37 NA FW
BC700-916 82.0 88.0 6.00 7.76 NA 5806 1575
124.4 126.6 2.20 8.05 NB2
BC700-917A 83.5 90.0 6.50 6.15 NA 5808 1557
includes 87.4 88.2 0.80 14.71
126.2 129.6 3.40 7.44 NB2 FW
BC700-918B 96.8 101.6 4.80 6.38 NA 5808 1532
BC700-919A 122.3 124.7 2.40 10.20 NA FW
includes 123.2 123.8 0.57 31.62
BC700-920 65.3 67.5 2.20 5.07 HW2
94.2 98.2 4.00 8.73 NA 5826 1567
includes 96.2 97.0 0.80 16.27
BC700-921 97.1 101.8 4.70 6.58 NA 5825 1539
BC700-922A 95.5 108.7 13.20 6.64 NA 5838 1556
includes 99.7 101.7 2.00 19.24
106.6 108.7 2.10 9.53
BC715-882A 66.9 69.0 2.10 4.24 NA 5929 1527
80.7 84.0 3.30 7.13 NB3
93.9 96.1 2.20 8.21 NB2
BC715-884 87.4 91.2 3.80 4.73 NA 5924 1496
103.9 105.9 2.00 7.17 NB3
109.9 113.6 3.70 4.27 NB3
127.9 130.0 2.10 4.05 NB2
BC715-886 73.9 83.0 9.10 6.05 NA4
includes 82.4 83.0 0.60 20.77 NA 5908 1510
BC715-929 46.3 48.7 2.40 7.72 HW5
61.4 64.7 3.30 5.84 NA 5936 1587
79.4 80.2 0.80 55.60 NB3
BC715-930 42.9 45.7 2.80 7.44 HW5
57.9 59.9 2.00 7.49 NA 5935 1564
BC715-931 39.6 41.8 2.20 5.70 HW5
79.2 81.7 2.50 4.20 NB3
BC730-873A 26.8 29.2 2.40 6.27 NA3
66.7 69.8 3.10 9.22 NA 5871 1549
includes 68.0 68.6 0.60 18.62
BC730-874A 31.8 33.9 2.10 6.79 NA3
69.9 76.6 6.70 6.92 NA 5876 1529
132.0 137.6 5.60 4.11 NB
BC730-875A 43.4 46.4 3.00 6.09 NA4
60.4 63.0 2.60 6.04 HW2
81.7 84.0 2.30 5.39 NA 5893 1524
BC730-890A 88.4 91.9 3.50 3.79 NA 5900 1518
BC730-878 74.1 79.5 5.40 6.15 NA 5836 1523
91.5 94.7 3.20 4.75 NB3
BC730-879 73.7 78.0 4.30 5.94 NA 5837 1514
BC730-927C 37.0 41.4 4.40 5.06
includes 37.0 39.4 2.40 7.16 NA3
51.0 53.0 2.00 5.76 NA4
73.0 80.8 7.80 6.83 NA 5876 1516
includes 79.7 80.8 1.10 17.75
106.6 113.4 6.80 5.45 NB2
includes 112.2 113.4 1.20 13.20
BC730-934 40.8 43.0 2.20 5.92 NA4
76.8 78.8 2.00 11.77 NA 5894 1553
BC730-935 68.0 73.7 5.70 10.18 NA 5863 1538
includes 70.4 71.5 1.10 23.77
96.0 98.9 2.90 4.34 NB2
BC745-880 68.9 73.9 5.00 5.45 NA 5892 1497
includes 71.9 72.3 0.40 17.50
92.1 95.4 3.30 5.92 NB2
Above 775mL- East Edge of Resource
BC730-1023A 38.5 40.7 2.20 8.10 HW6
56.2 58.5 2.30 4.91 NA2
BC730-1024 63.9 66.2 2.30 4.96 NA2
BC730-1025 77.4 80.9 3.50 8.55 NA2
BC730-1026 34.0 37.6 3.60 6.14 HW6
52.5 55.4 2.90 7.57 NA2
BC730-1027 34.0 37.0 3.00 6.32 HW6
53.0 55.4 2.40 4.93 NA2
BC730-1028 66.3 73.9 7.60 10.10 NA2
BC730-1030 69.4 71.6 2.20 8.45 NA2
775 - 925mL
BC610-912 275.6 278.0 2.40 4.51 NA 5973 1432
330.5 333.0 2.50 8.95 NB2 FW
BC715-881 72.8 78.6 5.80 4.01 HW6
includes 76.2 76.7 0.50 14.90
113.3 117.7 4.40 12.58 NA 5929 1527
includes 115.7 117.0 1.30 19.43
BC715-885 99.3 102.5 3.20 4.03 NA 5925 1481
BC715-887 101.5 103.7 2.20 4.43 NA 5913 1481
BC715-888 105.7 108.3 2.60 4.23 NA4
113.1 115.4 2.30 4.86 HW
170.4 176.8 6.40 7.61 NB2
BC730-891 142.7 144.7 2.00 4.10 NA 5884 1477
164.3 167.7 3.40 5.34 NB2
BC745-889 93.8 106.8 13.00 6.04 NA 5905 1454
includes 93.8 94.4 0.60 27.03
139.0 141.3 2.30 8.58
BC745-893 84.3 94.8 10.50 10.36 NA 5898 1466
includes 85.4 87.5 2.10 23.86
BC745-894 96.7 98.7 2.00 13.92 HW2
110.5 120.0 9.50 5.11 NA 5897 1435
BC730-876A 134.9 137.0 2.10 4.97 NA 5872 1478
BC745-936 79.3 82.9 3.60 5.24 NA4
109.7 117.1 7.40 3.89 NA 5881 1437
BC745-937 53.9 56.2 2.30 9.59 NA3
64.6 68.5 3.90 5.33 NA4
83.0 85.3 2.30 53.85 NA 5884 1473
includes 83.0 83.4 0.40 282.00
BC745-938 72.0 78.9 6.90 11.84 NA4
includes 77.0 77.3 0.30 118.00
93.0 96.6 3.60 4.65 HW2
133.0 135.4 2.40 4.01 NB2
BC745-939B 120.1 138.6 18.50 12.68 NA 5901 1419
includes 125.9 132.1 6.20 21.82
BC715-928c 137.8 140.8 3.00 6.86 NA 5928 1439
187.5 190.1 2.60 4.20 NB2
BC715-932 52.0 54.0 2.00 9.57 HW5
73.6 75.9 2.30 10.82 HW7
105.2 107.8 2.60 4.53 NB3
BC610-971A 168.4 170.4 2.00 7.47 NA2
304.4 306.6 2.20 6.34 NB
BC610-972 169.6 172.4 2.80 6.31 NA2
241.8 244.0 2.20 4.20 NA 5973 1475
BC610-973A 208.0 210.0 2.00 7.85 NA2
262.5 265.1 2.60 4.77 HW7
309.5 312.8 3.30 8.12 NA 5955 1396
328.6 330.7 2.10 4.44 NB3
BC610-976 240.0 242.0 2.00 7.39 NB2
BC610-977 194.2 197.3 3.10 4.09 NA2
231.0 233.9 2.90 7.80 NA 6038 1481
BC610-978 216.5 218.5 2.00 6.02 NA 6051 1502
BC610-1000B 333.8 337.7 3.9 5.39 NA2
381.0 384.0 3.0 4.39 NA 6006 1383
925 - 1050mL
BC610-975 320.0 322.2 2.20 9.64 HW5
341.9 365.2 23.30 3.09 NA 5963 1345
includes 341.9 349.3 7.40 6.81
and 363.2 365.2 2.00 6.27
394.9 401.7 6.80 3.49 NB3
407.6 410.5 2.90 4.20 NB2
BC610-983 408.0 410.3 2.30 6.31 NA2
416.0 418.1 2.10 13.93 HW6
425.1 427.5 2.40 5.45 HW5
438.3 443.0 4.70 9.14 HW8
477.5 487.1 9.60 9.79 NA 5906 1276
includes 479.3 481.6 2.30 15.87
and 485.8 487.1 1.30 37.30
566.1 571.2 5.10 4.33 NB
BC610-984 378.8 385.4 6.60 3.07 NA2
442.9 459.8 16.90 5.60 NA 5946 1303
includes 447.9 449.7 1.80 18.09
484.4 487.3 2.90 6.77 NB2
BC610-985 357.2 359.3 2.10 6.28 NA2
374.4 376.6 2.20 20.32 HW6
427.0 437.3 10.30 9.98 NA 5941 1335
includes 427.0 430.7 3.70 8.07
and 433.0 435.8 2.80 20.77
BC610-998 455.6 457.9 2.30 4.68 NA2
503.0 505.3 2.30 7.62 NA 6020 1227
525.8 528.4 2.60 5.54 NB2
Notes:
1) No significant results returned from: BC700-915, 715-883A
2) True widths are not reported at this time.
3) Assay results are reported uncut.
4) Holes are not necessarily drilled in sequence

To view Figure 1: Long Section - North A Zone Showing Significant Intercepts from Recent Drilling, please visit the following link: http://media3.marketwire.com/docs/969752-F1.pdf.

To view Figure 2: Level Plan - 715mL Showing Significant Zones and Drill Intercepts, please visit the following link: http://media3.marketwire.com/docs/969752-F2.pdf.

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