Bell Creek Complex
The Bell Creek Complex includes the Bell Creek mine and mill as well as the contiguous Vogel and Schumacher properties.
Exploration Highlights
January 18, 2010 - BC-09-53B extends mineralization to beyond 1,300 m down plunge, with multiple intercepts including 8.99 gpt Au over 7.00 m. BC-09-71A intersects 9.35 gpt Au over 5.50 m, extends new gold system to the west by approximately 70 m.
November 5, 2009 - Mineralization extended to total plunge length of approx. 1,250 metres, continuity of high-grade mineralization confirmed in previously untested area between 575 metres and 1,000 metres below surface.
October 1, 2009 - High-grade intercepts reported at depth including 12.67 gpt over 14.40 metres.
July 21, 2009 - New high-grade extension discovered at Bell Creek, intercepts include 12.63 gpt over 11.65 metres, with Bell Creek mineralization expanded to a total plunge length of 1,150 metres from surface.
July 7, 2009 - Deep extensions of gold mineralization confirmed at Bell Creek and Vogel. Multiple zones of gold mineralization at Bell Creek within easterly plunging system 500 metres long by 700 metres deep. Vogel mineralization extended to depth of 650 metres.
Advanced Exploration Program – Launched May 2009
On April 28, 2009, the Company announced that the Closure Plan for the Bell Creek Complex Advanced Exploration Program had been approved by and filed with Ontario´s Ministry of Northern Development and Mines. With the approval of the Closure Plan, the receipt of other required permits and the completion of an Exploration Agreement with four First Nations, the Company commenced an advanced exploration program at the Bell Creek Complex, which includes de-watering and rehabilitating the existing Bell Creek Mine shaft and workings and collaring a ramp at Bell Creek to be connected to the Bell Creek mine workings and then to be driven across the Bell Creek property to the contiguous Schumacher and Vogel properties. As of January 18, 2010, the Bell Creek de-watering of the Bell Creek shaft and workings had been completed and the ramp had advanced a total distance of approximately 940 metres. Bulk sampling from Bell Creek is targeted to begin around the middle of 2010.
| Bell Creek* | Tonnes | Grade (g/t) | Contained Gold (ozs.) |
|---|---|---|---|
| Indicated resources | 190,000 | 8.3 | 50,641 |
| Inferred resources | 346,000 | 7.7 | 85,880 |
| Schumacher* | Tonnes | Grade (g/t) | Contained Gold (ozs.) |
| Measured & Indicated resources | 156,000 | 6.0 | 30,043 |
| Vogel* | Tonnes | Grade (g/t) | Contained Gold (ozs.) |
| Measured & Indicated resources | 642,000 | 12.2 | 261,200 |
| Inferred resources | 933,800 | 12.2 | 379,800 |
Bell Creek Mine
The Bell Creek mine is a former producer with known resources and attractive exploration potential. The mine´s underground workings support Lake Shore Gold´s efforts to pursue its development, as well as possibly the exploration and development of Schumacher and Vogel.
In January 2007, Lake Shore Gold entered into an agreement with the Porcupine Joint Venture to acquire the Bell Creek mine and mill, with the transaction closing in December of that year. The mine includes a shaft, hoist, headframe, ore bin, collar house, hoist building, mine dry, office complex, underground mine workings and mineral resources. From 1986 to 1991, a total of 112,739 ounces of gold were produced from the Bell Creek mine, with all processing done at the Bell Creek mill. As with the mill, the existence of significant mine workings and infrastructure will contribute to a capital cost and development schedule for the Bell Creek mine that are considerable less than those for a comparable greenfield project.
Historic production at the Bell Creek mine revolved around a three compartment timber shaft sunk to a depth of 280 metres. From the shaft, mine levels were developed to the ore zones, and a ramp was developed from the lowest mine level to access ore below the current shaft depth. The mine was serviced by the shaft with an 8-foot diametre double drum hoist, and includes a 30-metre high headframe with a 300 tonne coarse ore bin to a loadout facility.
The Bell Creek mine is located to the west of, and along the same line of mineralization as, the Vogel/Schumacher properties and Goldcorp´s high-grade Hoyle Pond mine. Currently, historic (non-National Instrument 43-101 compliant) inferred resources at Bell Creek total 346,000 tonnes at 7.70 grams per tonne containing 85,880 ounces of gold (uncut). Given Bell Creek´s location, proximity to other deposits and openness at depth, significant potential exists to expand resources at the mine.
On April 28, 2009, the Company announced that it had received the required approvals to commence an advanced exploration program at the Bell Creek Complex, which will included watering and rehabilitating the existing Bell Creek Mine shaft and workings and collaring a ramp at Bell Creek to be connected to the Bell Creek mine workings and then to be driven across the Bell Creek property to the contiguous Schumacher and Vogel properties.
Exploration Results
On July 9, 2008 the Company reported encouraging results from the first five holes of its ongoing resource expansion drill program at the Bell Creek Mine, including the discovery of a new gold zone (the “South Zone”), with intersections of 5.39 grams per tonne gold over 6.05 metres (including 11.70 grams per tonne gold over 1.7 metres) on hole BC-08-02, and the extension of the known Bell Creek gold mineralization by approximately 350 metres below the existing Bell Creek resource and by approximately 175 metres to the west, with intersections of 5.95 grams per tonne gold over 8.1 metres (including 8.65 grams per tonne gold over 0.45 metres, 9.28 grams per tonne gold over 0.70 metres and 33.26 grams per tonne gold over 0.80 metres) on hole BC-08-05. The results highlight the potential to identify new sources of gold mineralization on the Property and to increase the known resource at the Bell Creek mine to depth. More information about the drill results is available in a press release dated July 9, 2008 available on this website.
On December 10, 2008, the Company reported encouraging results from another ten holes from the same drill exploration program. Included in the results is the discovery of four new extension zones to the existing Bell Creek mineralization, one to the east, two to the west and one to depth of the existing mine workings, with intersections of 7.60 grams per tonne gold over 6.30 metres (including 39.72 grams per tonne gold over 0.30 metres and 8.66 grams per tonne gold over 3.80 metres), 8.62 grams per tonne gold over 2.00 metres, 9.34 grams per tonne gold over 1.00 metre, 17.31 grams per tonne gold over 1.00 metre, 7.64 grams per tonne gold over 2.10 metres. Visible gold was noted in eastern gold extension.
On May 4, 2009, the Company announced encouraging results from 20 holes (12,297 metres) from the Company´s 100% owned Bell Creek and Vogel properties. Included in the results were holes confirming at least a 200 metre easterly extension of mineralization from the Bell Creek mine workings including intercepts of 10.40 grams per tonne gold over 0.60 metres and 4.08 grams per tonne gold over 3.45 metres in wedge hole BC08-23a, 7.44 grams per tonne gold over 0.50 metres within a broader intercept of 4.46 grams per tonne gold over 2.00 metres in Hole BC08-23 and 5.57 grams per tonne gold over 1.5 metres in BC09-03. These holes were drilled above discovery Hole BC08-09 (7.76 grams per tonne gold over 1.50 metres, 7.60 grams per tonne gold over 6.3 metres and 6.06 grams per tonne gold over 4.65 metres) which was reported on December 10, 2008 and indicate a minimum 300 metre vertical height for the mineralized zone in this area.
On July 7, 2009, Lake Shore Gold announced encouraging results from 16 holes and 7 wedge holes (12,593 metres) from the Company´s 100% owned Bell Creek and Vogel properties. At Bell Creek, 14 holes and 3 wedge holes (9,273 metres) were designed to test areas below and east of the historic resource and encountered attractive grades and widths of gold mineralization in several holes, among them: 6.76 grams per tonne (gpt) gold (Au) over 6.10 metres (m), including 13.26 gpt over 1.15 m, in Hole BC-09-02, 7.90 gpt Au over 5.95 m, including 11.73 gpt over 2.95 m, in Hole BC-09-3A, plus 5.16 gpt Au over 8.50 m in Hole BC-09-12.
On July 21, 2009, the Company announced encouraging results from four new holes and two wedge holes (3,604 metres) at Bell Creek, including results from wedge hole BC-09-24B which intersected 12.63 grams per tonne (gpt) over 11.65 metres (m) within a broader intercept of 11.09 gpt over 13.75 m. Wedge hole BC-09-24b intersected mineralization approximately 300 metres vertically below the previously released BC-09-3A and 180 m down plunge from the previously released BC-08-09. The intersection in BC-09-24B occurs on the south side of a steeply south dipping contact between the mafic and ultramafic volcanic rocks, which has been sharply twisted to the southeast near the Bell Creek fault. The best gold zones are located close to the projected convergence of the North A and Bell Creek West zones which were the two most prominent zones identified during past mining and are surrounded by a broad envelope of hydrothermal alteration. The 12.63 gpt intercept in hole BC-09-24B contains substantial quartz veining and sulphide minerals. The mineralization and alteration zone remainopen to the east, west and to depth.
On October 1, 2009, the Company announced results from 25 new holes, 6 wedge holes and one hole extension (12,085 metres) on the Bell Creek property. Results included 12.67 grams per tonne gold over 14.40 metres, including higher grade zones of 16.73 grams per tonne gold over 10.0 metres. BC-09-53 intersected mineralization at a vertical depth of 985 metres below surface and approximately 60 metres west of previously released hole BC-09-24B.
On November 5, 2009, the Company announced results from 14 new holes and 3 wedge holes (6,181 metres) at the 100% owned Bell Creek property. The most significant results being reported are from BC-09-053A, which intersected 5.13 grams per tonne gold over 26.40 metres, including higher grade zones of 9.75 grams per tonne gold over 5.60 metres and 12.80 grams per tonne gold over 1.5 metres. The November 5th results extended the mineralization at Bell Creek to a total plunge length of approximately 1,250 metres and defined a continuous high-grade mineralized system from the 500 metre level to 1,000 metres with the system remaining open at depth and along strike.
On January 18, 2010, the Company announced results from 17 new holes and 5 wedge holes for 10,435 m of drilling. The results included 8.99 gpt Au over 7.0 m, 3.12 gpt Au over 24.30 m, including 6.11 gpt over 5.50 m, 14.63 gpt over 1.30 m and 7.1 gpt over 1.0 m in BC-09-53B, located 95 m below previously-reported BC-09-53 (12.67 gpt over 14.40m). The results of BC-09-53B re-enforce the results of BC-09-53 and extended the Bell Creek mineralization to below 1,300 m down plunge with the system remaining open at depth and to the west. Mineralization from holes 53, 53A, 53B and 24B appears to get stronger and wider at depth. BC-09-71A intersected 9.35 gpt Au over 5.5 m, including 19.22 gpt over 2.28 m, and BC-09-069B intersected 8.05 gpt Au over 5.6 m and 9.19 gpt Au over 3.4 m, including 19.38 gpt over 1.0 m and 7.30 gpt Au over 1.70 m, in an untested gap west of previously reported BC-08-09. BC-09-71A extended the new gold system at Bell Creek to the west by approximately 70 metres from BC-08-09.
Vogel & Schumacher
The Vogel/Schumacher properties form part of Lake Shore Gold´s Bell Creek Complex and cover approximately 1.6 kilometres between the high-grade Hoyle Pond and Bell Creek mines. Together with the Bell Creek mine and mill, they comprise the Bell Creek Complex covering four square kilometres of strike length, all open at depth.
The Vogel property consists of one mining lease (64 hectares) which straddles an 800 metre section of the favourable gold-bearing stratigraphy between the Hoyle Pond mine and Bell Creek. Vogel is known to have high-grade gold veins near surface and the Company is evaluating the potential for accessing these veins via a surface ramp. Lake Shore Gold earned a 100% interest in the 20-year lease agreement covering the Schumacher property late in 2007. While limited exploration drilling has been completed at Schumacher to date, the Company believes that mineralization on the Schumacher property, which remains open, represents the western continuation of the gold mineralization at the Vogel property.
The Vogel property has historic resources, including measured and indicated resources totaling 642,000 tonnes at 12.2 grams per tonne containing 261,200 ounces of gold, and inferred resources of 933,800 tonnes at 12.2 grams per tonne containing 379,800 ounces of gold. At Schumacher, there are historic measured and indicated resources totaling 156,000 tonnes at 5.99 grams per tonne containing 30,043 ounces of gold (uncut). The Company does not treat these resources as National Insrument 43-101 defined resources and, therefore, is not relying on these historical estimates.
Drilling at Vogel in 2007 intersected mineralization located close to surface, between 50 and 150 metres, and near the existing Bell Creek mine infrastructure. Vertical and horizontal vein mineralization was intersected returning 106.90 grams per tonne gold over 2.0 metres, 18.64 grams per tonne gold over 1.2 metres, 16.09 grams per tonne gold over 0.7 metres, 99.74 grams per tonne gold over 1.0 metre and 10.89 grams per tonne gold over 1.1 metres.
Lake Shore Gold´s strategy for the Bell Creek Complex includes assessing the quickest and most cost effective way to evaluate the Vogel and Schumacher resources underground. In addition, the Company is also planning to explore the Bell Creek and Vogel/Schumacher properties via surface diamond drilling, with a focus on deep targets defined from historic drilling data, particularly in light of the significant depth of resources at other properties in the area such as the Hoyle Pond mine.
On April 28, 2009, the Company announced that it had received the required approvals to commence an advanced exploration program at the Bell Creek Complex, which will included watering and rehabilitating the existing Bell Creek Mine shaft and workings and collaring a ramp at Bell Creek to be connected to the Bell Creek mine workings and then to be driven across Bell Creek property to the contiguous Schumacher and Vogel properties.
On May 4, 2009, results were reported for one new hole, Hole V-08-01 (1,166 metres), at Vogel which was completed in late 2008. The hole was drilled in the central part of the property in order to test the down dip extension of the mineralization. Results of the drilling were highly favorable and intersected strong alteration and local quartz veining containing an assay value of 8.89 gpt over 0.70 m in an area 300 metres below the historic area of mineralization, to a total depth of 950 metres.
On July 7, 2009, results were released from 2 holes and 4 wedge holes (3,320 metres) at Vogel which were designed to test approximately 300 metres below the historic resource in the area. Hole V-09-01A intersected visible gold with assays of 22.50 gpt Au over 1.00 m, 8.39 gpt Au over 1.60 m and 7.06 gpt Au over 1.95 m. These assay results are located approximately 150 metres west of the previously released results of 8.90 gpt over 0.70 m in Hole V08-01 and continue to suggest that a new vein system is emerging at depth.
Bell Creek West Acquisition
On December 17, 2009, the Company completed an agreement with Goldcorp Canada Ltd., manager of the Porcupine Gold Mines Joint Venture (“PJV”) and Goldcorp Inc., for the purchase of approximately 28 square kilometers of prospective exploration property in the surrounding vicinity of Lake Shore Gold´s 100% owned Bell Creek Complex for consideration of $20 million ($15 million in cash and the remainder in shares of Lake Shore Gold). Areas included in the transaction range from a project with historic resources, Marlhill Mine, to early stage exploration targets, all located along the New Mine Trend, host to the PJV´s Hoyle Pond Mine and Pamour operation.
