Lake Shore Gold updates gold deposit estimates at Timmins mine

Lake Shore Gold Corp. has updated the estimated gold deposits at its Timmins West Mine, previously released in September, 2009 and November 2011. The Timmins West Mine is now estimated to include just under 2 million ounces in total. The new resource has been calculated based on the interpretation of drill results and on knowledge gained from the operation of the mine over the past year and a half.

In a statement, Tony Makuch, president and CEO of Lake Shore Gold said, "With just under two million ounces in total resources, we have established a very solid base capable of supporting many years of production at the Timmins West Mine. The fact is we are not just building a mine on the west side of the City of Timmins, but rather we are building a large mining complex that we expect to operate for a very long time.”

Makuch said that they had a “very high level of confidence” in their updated resource model as the company works to increase production capacity to a processing rate of 3,000 tonnes per day at its Bell Creek mill by late 2012. The company will file a Preliminary Economic Assessment (PEA) within 45 days, providing more detail about the estimated reserves.   

In addition to its commercial production at Timmins West Mine, which includes Timmins and Thunder Creek deposits, Lake Shore Gold is progressing with an underground advanced exploration program at its Bell Creek Mine.

Last week Lake Shore announced a $50-million financing deal in which Toronto-based Franco-Nevada will acquire an equity stake in Lake Shore and a royalty interest on the sale of minerals from Timmins West. Lake Shore will use the cash to finance development of its mines.