Timmins West Gold
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Lake Shore’s 100%-owned Timmins West gold property was acquired in 2003 through Lake Shore’s acquisition of Holmer Gold Mines Limited. Timmins West lies at the west end of the Timmins gold camp, 18 kilometres west of the city of Timmins, Ontario, and north of the main Porcupine-Destor Fault Zone. The Timmins camp is one of the richest gold mining districts in North America, having produced more than 70 million ounces of gold since its discovery in the early 1900s.
In November 2006, Lake Shore announced an updated gold mineral resource at Timmins West, audited by Watts, Griffis and McOuat Limited, of 1.29 million ounces (uncut) in the indicated category (905,000 ounces cut), and an additional 207,000 ounces (uncut) in the inferred category (174,700 ounces cut). The indicated resource contains 3.3 million tonnes of ore grading 12.29 grams per tonne uncut (8.62 grams per tonne cut), and the inferred resource contains 968,000 tonnes grading 5.79 grams per tonne uncut (5.54 grams per tonne cut).
Property Description
Timmins West is located approximately 18 kilometres west of the centre of the city of Timmins, Ontario, which is 690 kilometres by road north of Toronto. The claims are located in the southwest corner of Bristol Township, District of Cochrane, in the Porcupine Mining Division at approximately Longitude 81°33'W and Latitude 48°23'N, and at UTM 5,359,200N and 459,000E (NAD 83 Zone 17).
The property, which consists of a contiguous block of 23 claims (12 leased claims, which are grouped into two 21-year leases and 11 individual patented claims), covers approximately 395 hectares and is 100% owned by Lake Shore and/or Lake Shore's wholly owned subsidiary. One claim is subject to a royalty. All of the 23 claims cover both mining and surface rights. The individual patented claims have no expiry date, provided a small annual fee of $4.00/hectare is paid. The claims comprising the leases are subject to a $3.00/hectare annual fee.
Mineralization
Gold mineralization on the property is typical of deposits in the Timmins camp where high-grade mineralized quartz veins and disseminated sulphide zones occur within and adjacent to shear zones as steeply dipping ore shoots. Known gold mineralization on the Timmins West property occurs within a 150 to 200 metre wide, highly altered, deformation zone.
Drilling to date has confirmed the continuity and gold grade of mineralized zones to a depth in excess of 1,400 metres down plunge or 1,200 metres vertical depth. The Footwall and Ultramafic zones have the greatest grade times width values and currently account for 90% of the total tonnage in the indicated resource. The Footwall and Ultramafic zones remain open at depth and the Hanging Wall veins and Main Zones remain untested 600 metres and 400 metres below surface, respectively. The alteration veining and mineralization remain very wide and strong on the deepest section drilled, and newly recognized fold structures now offer additional potential at depth.
Drilling in the western part of the deposit, between 500 and 800 metres depth, indicates that the Footwall and Ultramafic zones develop into a thick panel of mineralization with well over 200 metres of dip extent. Several new intersections in this part of the deposit indicate that the mineralized zone obtains much greater widths and better continuity than the shallower known resource.
Exploration
After Lake Shore took over operatorship of the property in 2003, the company has focussed on exploring the down plunge extension of the Footwall and Ultramafic zones, with much of the recent drilling well below the area considered in the initial Lake Shore programs and the 2002 and 2004 mineral resource estimates.
January 2007 Technical Report (11MB PDF)
Drilling completed in 2003 by Lake Shore consisted of 62 NQ holes and/or wedges totalling 21,131 m. Thirty-two were deep mineral resource expansion holes, nine were exploration holes completed away from the known resource, and 21 short holes were drilled in an area above 100 metre vertical in programs designed to define an open pit resource. The nine exploration holes tested geological/structural/alteration targets and encountered no significant gold values. Other work completed in 2003 included a detailed (75 metre line spacing) airborne magnetic survey, a detailed structural study of the exposed portion of the deposit, and Mobile Metal Ions ("MMI") soil sampling on the overburden-covered eastern and northeastern portions of the property.
In 2004, an additional 29 holes totalling 13,668 metres were drilled, for the most part to extend the resources from 4715E to 4595E and to a depth of 850 metres. Twenty-six holes were directed towards mineral resource expansion and three were exploration holes directed towards various exploration targets on the property. None of the exploration holes encountered significant results. Environmental baseline surface water sampling continued.
In 2005, an additional 62 holes totalling 30,672 metres were drilled. Fifty-one holes were directed towards mineral resource expansion and 11 were exploration holes directed towards exploration along the sediment-volcanic contact to the north and east of the Deposit. Metallurgical testwork and process design for a new on-site 1,500 tonne-per-day mill commenced. Environmental baseline surface water sampling continued.
To November 3, 2006, Lake Shore has drilled an additional 56 holes totalling 27,369 metres in an ongoing drilling program. Thirty-seven holes were directed towards down plunge mineral resource expansion and 19 were exploration holes. The exploration holes focused on attempting to expand the deposit along strike and dip, as well as various other exploration models. Although some sample results are still pending, the exploration holes have not encountered any significant gold values.
Lake Shore also carried out a small amount of stripping and diamond-saw channel sampling in the original showing stripped area and in addition, the perimeter of the property was re-surveyed and marked out by an Ontario land surveyor.
Pre-feasibility
The pre-feasibility study at Timmins West continues to be advanced. The metallurgical study and tailings design have been completed, and work continues to update the deposit model as drilling advances. Environmental assessment studies and permitting are ongoing, and the mine plan is awaiting final input from the other studies and completion of the sectional drilling. The pre-feasibility study is expected to be complete in mid-2007.
In June 2006, the Company initiated the process for an advanced exploration permit which will take approximately six to ten months to complete at an estimated cost of $250,000.The permit will make it possible to initiate underground development work in mid-2007.
Quality Control
Effective May 1, 2006, Jacques Samson, P. Geo., is the Qualified Person who has prepared or supervised the preparation of all disclosure of a scientific or technical nature concerning Timmins West. Prior to that date, Dr. Michael Byron, P. Geo., was the Qualified Person for Timmins West.
