Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

May 23, 2006 08:00 ET

Lake Shore Initiates Permit Process for Advanced Underground Exploration Programs at Timmins West and Vogel-Schumacher Gold Projects, Timmins, Ontario

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 23, 2006) - Lake Shore Gold Corp. (TSX:LSG) is pleased to announce that it has initiated the application process to obtain the necessary government permits to conduct advanced underground exploration programs at its Timmins West and Vogel-Schumacher gold projects, Timmins, Ontario.

The permitting process is expected to take 4-6 months for Timmins West and 6-10 months for the Vogel-Schumacher project and is estimated to cost C$250,000 and C$350,000 respectively. This work will include all aspects of conducting underground advanced exploration programs, including environmental and mine engineering, surface infrastructure, shaft and/or ramp construction, scheduling, underground drilling and bulk sampling. The cost estimates of conducting the advanced underground exploration programs for each property will be determined as part of the above process. In addition, the Vogel-Schumacher Project will now be included as part of the ongoing Timmins West pre-feasibility study. Completion of this work would make it possible to initiate advanced underground exploration programs at both properties in 2007.

"Initiating the permitting process for both projects will accelerate the exploration required to evaluate the mineral resources in greater detail from underground. This step is a logical progression reflecting our successful surface exploration programs completed to date. In addition, we recognize that there are possible significant synergies achieved by advancing both properties to the feasibility stage at the same time." stated President Brian Booth.

The current resource expansion and exploration diamond drill programs at Timmins West and Vogel-Schumacher will continue throughout the permitting period. The new resource estimate for Timmins West is on track to be completed in the third quarter of 2006.

Two engineering/environmental consulting companies, Golder Associates Ltd. and AMEC Mining and Metals Company (AMEC), have been retained to complete the required environmental and underground access development studies for the advanced exploration program at Timmins West. AMEC will complete the required environmental and engineering studies for the Vogel-Schumacher project.

Lake Shore is exploring for gold and base metals in the Archean Superior Province of Ontario and Quebec. See the Company's website (www.lsgold.com) for further information on the Company's properties.

Forward Looking Statement

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 statement.

Contact Information

  • Lake Shore Gold Corp.
    Daniel G. Innes
    Director
    (604) 669-3533
    (604) 688-5175 (FAX)
    or
    Lake Shore Gold Corp.
    Brian R. Booth
    President
    (705) 525-0992
    (705) 525-7701 (FAX)
    info@lsgold.com
    www.lsgold.com