Over the last several months, Lake Shore Gold has made significant progress improving production efficiency and effectiveness, completing needed development and infrastructure and strengthening its operations and management team in Timmins. The Company has also achieved major milestones including reporting strong third quarter operating results from Timmins Mine, announcing initial resources at Thunder Creek and Fenn-Gib and releasing the results of the “Deep Hole,” which has extended the Timmins Mine mineralized structure by 1.9 kms.
As a result of the progress that has been made, the Company’s:
- Production performance improved late in 2011 with fourth quarter gold poured expected to total 25,000 ounces from all sources and full-year 2011 gold poured to total 85,000 ounces;
- Cash cost performance is improving with cash costs for all 2011 expected to be better than the US$845 per ounce recorded in the first nine months of the year;
- Resource base has doubled for the second time in two years to a total of 6.3 million ounces with more growth expected over the next few months;
- Exploration program has gained valuable information that has been applied to its geologic models and is providing increased potential for major new discoveries and extensions, virtually at any time; and
- Work to update the existing NI 43-101 resources at Timmins Mine, Bell Creek and Thorne (Gold River Trend) and complete mine scoping studies at Thunder Creek and Bell Creek has advanced towards completion, which will provide greater clarity around future production, development and capital expenditure plans.
As Lake Shore Gold has emerged as a new, rapidly growing gold producer it has faced some challenges. Today, these challenges have largely been addressed and the Company has made significant progress putting in place a number of key drivers for short-term value creation, including improved operating performance, rapid resource growth, continued exploration success and effective project assessment and development. Driving short-term value is important for today, as well as the long-term success of the Company as Lake Shore Gold advances towards entering the ranks of mid-tier gold producer.