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TORONTO, ONTARIO--(Marketwire
- Jan. 6, 2011) - Lake Shore Gold Corp. (TSX:LSG)
("Lake Shore Gold" or the "Company") today announced
that the Company has declared commercial production at Timmins Mine
effective January 1, 2011. The mining rate at Timmins Mine averaged
1,700 tonnes per day ("tpd") during December 2010 and approximately
1,600 tpd for the fourth quarter, exceeding
the target rate for the Mine of 1,500 tpd and
supporting production levels above 10,000 ounces per month.
Mill production in December 2010 totaled 12,300 ounces of gold, which
brought total recovered gold over the final two months of the year to
24,500 ounces. For the fourth quarter, mill production totaled 29,900
ounces, which included only two weeks of mill operation in October due
to the timing of the Company's mill expansion to a capacity of 2,000 tonnes per day. For the full year 2010, the Company
produced 43,500 ounces of gold from the Mill. In addition, at the end
of December approximately 103,500 tonnes of
ore from the Company's Timmins Mine, Thunder Creek and Bell Creek
properties was in broken inventory yet to be processed.
Mill throughput during the fourth quarter, from the start of
commissioning of the expansion in mid-October, averaged 1,650 tpd. A total of 127,000 tonnes
were milled during the fourth quarter at an average grade of 7.5 gpt. Recoveries during the quarter averaged 97%. In
December, 50,000 tonnes were processed at an
average grade of 7.9 gpt with recoveries
exceeding the 97% level. Average throughput levels at the Mill are
expected to increase to the nominal rate of 2,000 tonnes
per day, with the potential existing to increase throughput above this
level.
Tony Makuch, President and CEO of Lake Shore
Gold, commented: "Today represents a major achievement for Lake
Shore Gold with the declaration of commercial production at Timmins
Mine effective January 1, 2011. Reaching commercial production is an
important milestone for driving value creation and results from our
exploration, development and operating success. We have made rapid
progress at Timmins Mine, going from commencing advanced exploration to
commercial production in roughly three years. At our mill, head grades
continue to be strong and recoveries are consistently better than we
expect, averaging around the 97% level. Over the last two months of the
year we exceeded our target to exit 2010 producing at an average rate of
10,000 ounces per month at the Mill."
About Lake Shore Gold
Lake Shore Gold is a rapidly growing mining company with a vision to
become a mid-tier gold producer through the successful exploration,
development and operation of its properties in the Abitibi Greenstone
belt in Northern Ontario and Quebec, starting with its strong base in
Timmins, Ontario. In Timmins, the Company is in commercial production
at the Timmins Mine, has intersected underground, and is developing
along, mineralization at the adjacent Thunder Creek deposit and is
advancing an underground advanced exploration program at its Bell Creek
Mine. Mine production is delivered to the Company's wholly owned mill
(located on the Bell Creek Property east of Timmins) which has been
refurbished and currently has an operating capacity of 2,000 tonnes per day. The Company continues to invest
aggressively in exploration in the Timmins Camp and in its other
properties in Northern Ontario and Quebec, and owns a large land
position in Mexico. The Company's common shares trade on the TSX under
the symbol LSG.
Forward-looking Statements
Certain statements in this press release relating to the Company's
exploration activities, potential for increasing resources, 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.
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