Lake Shore Gold Corp.
TSX : LSG

Lake Shore Gold Corp.

September 13, 2007 08:00 ET

Lake Shore Signs Agreement With Aurizon to Acquire 50% of Casa Berardi Exploration Property in Quebec

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 13, 2007) - Lake Shore Gold Corp. (TSX:LSG) ("Lake Shore" or "the Company") has entered into an option joint venture agreement with Aurizon Mines Ltd. ("Aurizon") to acquire a 50% interest in Aurizon's large land position surrounding its Casa Berardi Mine (the "Casa Berardi Exploration Property"). The Casa Berardi Exploration Property is located outside of Aurizon's existing mining leases and outside of its 100% owned Casa Berardi Mine, which hosts proven mineral reserves of 1.2 million ounces (4.7 million tonnes at 7.7 grams per tonne gold) along with mineral resources totaling approximately 526,000 ounces (3.1 million tonnes at 5.3 grams per tonne gold) in the measured and indicated category and an additional one million ounces (5 million tonnes at 6.6 grams per tonne gold) in the inferred category. Information required by NI 43-101 is contained in the Technical Report dated October 26, 2005 under Aurizon's profile on www.sedar.com.

The Casa Berardi Exploration Property covers 227 claims in an east and west block surrounding the Casa Berardi Mine and covers an area of 11,594 hectares along a 30-kilometre section of the Casa Berardi fault. The Casa Berardi fault is a major structural zone that is host to a number of gold and base metal deposits. Numerous gold showings occur within the Casa Berardi Exploration Property, which have only been subject to limited exploration since their discovery in the 1980s.

Lake Shore President and CEO, Brian Booth, said: "Lake Shore is very excited to enter into this agreement with Aurizon on their very prospective and large land position at Casa Berardi. We believe there is significant potential for the discovery of additional economic gold mineralization on the optioned property. The addition of the Casa Berardi Exploration option, along with our 100%-owned Blakelock and Little Abitibi properties, provides Lake Shore with over 100 kilometres of strike length for exploration along the favourable Casa Berardi structure stretching from Quebec into Ontario."

Under the terms of the agreement, Lake Shore can earn an undivided 50% interest in the Casa Berardi Exploration Property by incurring exploration expenditures of $5 million over a five-year period, including a firm commitment of $600,000 in the first year. Lake Shore will be the operator of the Casa Berardi Exploration Property during the earn-in period. If an indicated mineral resource of at least 500,000 ounces of gold at a minimum grade of 6.0 grams of gold per tonne (or economic equivalent thereof) is established, the area containing the resource plus a one kilometer radius surrounding the outer perimeter of the resource may be transferred to a specific property joint venture, in which Aurizon and Lake Shore will each have a 50% interest. Aurizon shall then have the right to earn an additional 10% interest in the Specific Property by funding the costs of a feasibility study. Any ore produced from the Casa Berardi Exploration Property will be processed at Aurizon's 100% owned Casa Berardi milling facility.

A sketch showing the area that Lake Shore will be exploring, outside of the mining leases and Casa Berardi Mine area, is available on the Company's website at www.lsgold.com.

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 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.

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 statement.

Contact Information

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