Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

November 09, 2006 17:29 ET

Lake Shore Gold Third Quarter Project Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 9, 2006) - Lake Shore Gold Corp. (TSX:LSG) ("the Company") is pleased to provide a quarterly update on its exploration projects in Ontario and Quebec as of the end of September 2006.

Timmins West Gold Property, Ontario

During the quarter, activities on Lake Shore's Timmins West Gold Property included the following:

- Lake Shore's resource expansion drill program at Timmins West continued throughout the third quarter. By the end of the period, the Company had completed 8,234 metres of sectional drilling and Property wide exploration drilling, for a total of 26,610 metres for the year to date. For further details on the Company's drilling activities at Timmins West during the third quarter please refer to the Company's press releases dated August 16, 2006 and October 31, 2006.

- The drill results reported in these press releases confirm that the mineralization and the mineralized zones maintain their distinctive characteristics and predictability between sections. The Footwall and Ultramafic zones remain open at depth and the Hanging Wall veins and Main Zones remain untested 600 metres and 400 metres below surface, respectively. The alteration veining and mineralization remain very wide and strong on the deepest section drilled, and newly recognized fold structures now offer additional potential at depth.

- An updated independent resource estimate is scheduled to be completed in the fourth quarter, and the pre-feasibility study continues to be advanced. The metallurgical study and tailings design have been completed, and work continues to update the deposit model as drilling advances. Environmental assessment studies and permitting are ongoing, and the mine plan is awaiting final input from the other studies and completion of the sectional drilling. The pre-feasibility study is expected to be completed in mid 2007.

- In June 2006, the Company initiated the process for an advanced exploration permit which will take approximately six to ten months to complete at an estimated cost of $250,000.The permit will make it possible to initiate underground development work in mid 2007.

Vogel and Schumacher Properties, Ontario

During the quarter, on the Vogel and Schumacher properties, Lake Shore drilled four holes to test for gold mineralization in horizontal and sub-horizontal veins, two deep exploratory stratigraphic holes and nine geotechnical holes. The geotechnical holes, totalling 924 metres, were drilled to test overburden thickness and general rock quality on the west side of the Schumacher Property. This location is a potential site for an underground portal entrance for an advanced exploration program. The overburden thickness ranged from 19.0 to 38.5 metres in depth. For details on third quarter drilling activities at Vogel and Schumacher please refer to the Company's press release dated October 31, 2006.

The shallow drill testing for horizontal gold bearing quartz veins centred on the Vogel and Schumacher boundary has been completed to a depth of 100 metres. Additional drilling is planned to further test for horizontal veins 400 metres to the east on the Vogel Property.

The deep stratigraphic holes provided geological data at depth that is being evaluated and will lead to further drilling in 2007.

In June 2006, the Company initiated the process for an advanced exploration permit, which will take approximately 10 to 12 months to complete. The permit will make it possible to initiate underground development work in late 2007.

OTHER PROPERTIES

Blakelock Property, Ontario

During the third quarter, a detailed 100-metre spaced airborne Magnetic and VLF-EM survey was completed over the entire Blakelock claim group. The final results of the survey have yet to be received but will be the basis for a new geophysical interpretation of the area. This survey along with a compilation of past work will help with the interpretation of the geologic setting of the area and the Porphyry Creek gold mineralization encountered over a 500-metre area in the most recent diamond drill program. A further drill program is planned to commence in the first quarter of 2007.

Thunder Creek Property, Ontario

A program of stripping/channel sampling and geological mapping was completed in the third quarter. A drill program is planned for the first quarter of 2007 to follow up on previous gold intersections and to further test the ultramafic-to-sediment contact zone.

DeSantis Property, Ontario

A new drill program with one drill was initiated at the end of the third quarter of 2006 to follow up on a new gold occurrence that returned 25.15 grams gold per tonne over 0.30 metres from a wide zone of stockwork quartz-tourmaline pyrite-arsenopyrite mineralization. This discovery of gold mineralization is associated with a strongly altered structural zone and opens up new potential for the DeSantis Property. The new occurrence is within an untested area open to the east and west and at depth.

Noranda North Property, Ontario

During the third quarter, a field exploration program consisting of prospecting, geologic mapping and lithogeochemical sampling was completed in an attempt to delineate alteration envelopes for volcanogenic massive sulphide targets. Results from the exploration program are being compiled in order to formulate a drill program in the early part of 2007.

Subsequent Event

Pursuant to an agreement dated February 14, 2003 (the "Abitibi Agreement") between Inco Limited ("Inco") and Aurora Platinum Corp., Inco acquired the right to a net smelter return royalty (the "Abitibi Royalty") in respect of certain properties acquired by Lake Shore (the "Abitibi Properties") utilizing Inco data. The Abitibi Properties include Timmins West, Thunder Creek, Blakelock, Bazooka, Noranda North, Drouet and Cameron East properties. On November 3, 2006, Lake Shore and Inco signed an agreement whereby Lake Shore will purchase the Abitibi Royalty by paying to Inco $1 million in cash and issuing 350,000 Lake Shore common shares within 10 days of approval of the transaction by the Toronto Stock Exchange. Upon payment by Lake Shore and issuance of shares, Lake Shore will have no further obligations to Inco regarding the Agreement.

About Lake Shore

Lake Shore is a mineral exploration company engaged in the acquisition and exploration of mineral properties with prospects for hosting gold and base metal deposits. The Company is currently active in Canada and holds a number of mineral resource properties, either directly or through option agreements, in Ontario and Quebec. Lake Shore is a reporting issuer in British Columbia, Alberta, Manitoba, Ontario and Quebec, and trades on the Toronto Stock Exchange under the symbol LSG.

Lake Shore's Qualified Persons ("QP") are Jacques Samson, P.Geo., for Timmins West and Thunder Creek; Richard Labine, P.Geo., for Vogel-Schumacher; and William Waychison, P.Geo, for DeSantis. Each QP has prepared or supervised the preparation of the scientific or technical information for the respective properties.

In conjunction with this quarterly project update, the Company is filing a quarterly Management's Discussion and Analysis and Financial Statements on the SEDAR website at www.sedar.com.

Additional information is provided in the Company's audited consolidated financial statements for the year ended December 31, 2005 and the Company's Annual Information Form and Information Circular, also at www.sedar.com.

Forward-looking Statements

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Company's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statements.


Contact Information

  • Lake Shore Gold Corp.
    Meghan Brown
    Manager Investor Relations
    (604) 669-3533
    (604) 688-5175 (FAX)
    Email: mbrown@lsgold.com
    or
    Lake Shore Gold Corp.
    Brian R. Booth
    President
    (705) 525-0992
    (705) 525-7701 (FAX)
    Email: info@lsgold.com
    Website: www.lsgold.com