Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

December 16, 2008 08:00 ET

Lake Shore Gold Significantly Extends Rusk Zone and Announces New High-Grade Gold Intercepts at Thunder Creek

- 11.20 Au g/t over 10.40 metres, including 25.99 Au g/t over 3.00 metres - Rusk Zone extended at least 160 metres down-plunge, 100 metres up-plunge

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2008) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore Gold" or the "Company") today announced encouraging results from the first nine holes (4,000 metres) of its ongoing 22,000 metre diamond drill program on the Company's 60%-owned Thunder Creek property, which is located immediately adjacent to Lake Shore Gold's 100%-owned Timmins project (formerly the Timmins West project). The results include an intercept of 11.20 gold (Au) grams per tonne (g/t) over 10.40 metres in drill hole TC08-54 at a depth of 575 metres, the deepest intercept to date. Included within this intercept are a high-grade zone of 25.99 Au g/t over 3.00 metres and another interval averaging 7.79 Au g/t over 4.55 metres, all of which are in a broader zone averaging 5.90 Au g/t over 26.35 metres. The zone remains open at depth and along strike and lies within 750 metres from the shaft currently being developed as part of the advanced exploration program at the Company's Timmins project.

The TC08-54 intercept displays a distinct style of mineralization, which could represent the upper portion of a new porphyry-hosted sub-zone. The intercept extends the Rusk Zone by at least 160 metres further down-plunge from the previously released hole TC07-43, which returned 8.57 Au g/t over 9.00 metres (see Press Release March 31, 2008), with other intercepts being reported today extending it by at least another 100 metres further up-plunge and closer to surface. The depth of the intercept in hole TC08-54 is similar to the depth at the top of the best mineralized zones at the Timmins deposit owned 100% by Lake Shore Gold.



Highlights:

Rusk/Porphyry Zone (TC08-54)
657.65 - 684.00: 5.90 Au g/t over 26.35 m
Including 666.40 - 676.80: 11.20 Au g/t over 10.40 m
Including 666.40 - 669.40: 25.99 Au g/t over 3.00 m
Including 672.25 - 676.80: 7.79 Au g/t over 4.55 m
Rusk Zone (Shallow Level) (TC08-56)
231.35 - 235.10: 2.37 Au g/t over 3.75 m
Including 231.35 - 231.65: 18.20 Au g/t over 0.30 m
Rusk Zone (TC08-57)
601.30 - 602.20: 12.54 Au g/t over 0.90 m


Tony Makuch, President and CEO of Lake Shore Gold, commented: "We are very encouraged that as we drill deeper at Thunder Creek, we continue to encounter new mineralization with attractive grades and have been able to significantly extend the Rusk Zone both down and up-plunge. Our deepest hole, TC08-54, is of particular interest, as it appears to represent a new mineralized system that has the potential to extend much further at depth. While more work remains to be done, Thunder Creek is clearly a highly prospective exploration target that could become an important new dimension to our Timmins project."

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. Drilling is focused on the Rusk Gold Zone, and is also testing various other exploration targets across the property. A total of 7,101 metres in 15 holes were recently completed, and results from the first nine holes have been finalized and are included in this press release, with six holes yet to be reported. The drill program is ongoing and will continue into 2009.



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Hole From To Length Gold Comments
Number(i) (m) (m) (m) (g/T)
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TC08-51 No significant results
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TC08-52 179.10 179.95 0.85 4.68 Rusk (shallow level)
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185.95 187.40 1.45 3.02 Rusk (shallow level)
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200.00 200.45 0.45 3.46 Rusk (shallow level)
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TC08-53 No significant results
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TC08-54 608.50 609.50 1.00 1.57 Rusk
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621.75 625.45 3.70 1.92 Rusk
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644.1 645.65 1.55 4.03 Rusk
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657.65 684.00 26.35 5.90 Rusk/Porphyry Zone
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Incl 666.40 676.80 10.40 11.20
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Incl 666.40 669.40 3.00 25.99
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Incl 672.25 676.80 4.55 7.79
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TC08-55 266.30 266.60 0.30 5.06 Rusk (shallow level)
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TC08-56 231.35 235.10 3.75 2.37 Rusk (shallow level)
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Incl 231.35 231.65 0.30 18.20
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251.65 259.00 7.35 1.34 Rusk (shallow level)
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Incl 258.50 259.00 0.50 8.60
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TC08-57 576.90 577.20 0.30 5.67 Rusk
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601.30 602.20 0.90 12.54 Rusk
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607.15 607.65 0.50 5.74
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TC08-58 110.55 113.40 2.85 3.01 Rusk (shallow level)
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117.60 117.90 0.30 3.15
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TC08-59 No significant results
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(i) Due to uncertainties in zone orientations, true widths are not known at
this time. Assays reported are uncut


Based on data collected to date, the Rusk Gold Zone appears to represent a high-grade shoot within a broad north-east trending mineralized corridor, steeply dipping to the northwest. This shoot lies along the contact between the Alkalic Intrusive Complex and sediments located in the footwall to the intrusive. It is characterized by very strong alteration and deformation, accompanied by numerous ultramafic to felsic dykes, quartz-ankerite veining, and sulphide mineralization. Significant intercepts below the 200 metre level, previously reported by the Company, within this zone include: 10.91 Au g/t over 3.65 metres (TC07-30), 8.57 Au g/t over 9.00 metres (TC07-43) and up to 24.61 Au g/t over 7.0 metres (TC07-36).

Drill holes TC08-51, TC08-53, TC08-55, TC08-56, TC08-58 and TC08-59 were focused on testing the Rusk Horizon along strike and at shallow depths, generally less than 200 metres from surface. Strong shearing, brecciation, and pervasive carbonate alteration were locally noted, accompanied by sporadic mineralization and assay results up to 18.20 Au g/t over 0.30 metres (see table). These results confirm that the zone extends for at least another 100 metres further up-plunge and closer to surface.

Hole TC08-54 intersected 11.20 Au g/t over 10.40 metres at a depth of 575 metres below surface, representing the deepest intercept on the Rusk Zone to date. It is hosted by a syenitic feldspar porphyry dyke, accompanied by quartz-ankerite stockwork, pyrite, galena, scheelite, possible tellurides and several occurrences of visible gold. The intercept displays a distinct style of mineralization, which occurs south of the Alkalic Intrusive Complex and could represent the upper section of a new porphyry-hosted sub-zone. It extends the mineralization by at least 160 metres, and defines a high-grade gold shoot which plunges well in excess of 400 metres towards the northeast. The zone remains open at depth and along strike and lies within 750 metres from the Timmins Mine shaft.

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 rapidly moving towards gold production through its 100%-owned Timmins project, which has a 1.2 million ounce reserve (uncut) and where the Company is sinking a shaft and driving a ramp to access shallow mineralization. Production from the Timmins project is on track to commence during the first quarter of 2009. The Company also has completed the refurbishing of its wholly owned Bell Creek mill, which it acquired in December 2007, and has a number of 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.

Figure 1 To view a long section please visit the following link: http://media3.marketwire.com/docs/lsg1216f1.pdf

Figure 2 To view a cross section please visit the following link: http://media3.marketwire.com/docs/lsg1216f2.pdf

Figure 3 To view an area plan please visit the following link: http://media3.marketwire.com/docs/lsg1216f3.pdf

Contact Information

  • Lake Shore Gold Corp.
    Tony Makuch
    President & CEO
    (416) 703-6298
    (416) 703-7764 (FAX)
    Email: info@lsgold.com
    or
    Lake Shore Gold Corp.
    Mark Utting
    Vice-President, Investor Relations
    (416) 703-6298
    (416) 703-7764 (FAX)
    Email: info@lsgold.com
    Website: www.lsgold.com