Lake Shore Gold Corp. reported higher commercial production from the company’s 100 per cent owned Timmins Mine in the third quarter of 2011 compared to the first two quarters of the year.
The company produced 18,833 ounces of gold in the third quarter of 2011, representing an increase of 9 per cent and 24 per cent from the first and second quarters, respectively. Gold poured during the third quarter totaled 16,693 ounces.
For the first three quarters of the fiscal year, gold production totaled 58,775 ounces.
“We are very encouraged about the progress that has been made and what we expect to achieve over the next several months,” said Tony Makuch, president and CEO of Lake Shore Gold.
The company’s mill is meeting and exceeding expected performance levels with throughput averaging over 2,000 tonnes per day in September and 2,100 tonnes per day in the first week of October. A total of 173,877 tonnes of ore were milled during the third quarter of 2011 at an average grade of 3.49 grams per tonne.
Grades at the Timmins Mine UM1 Zone reconciled closely to the block model. “We started in a lower grade part of the UM1 between the 585 and 610 levels, with grades matching well to the estimate of 4.80 grams per tonne,” said Makuch.
Production from the UM1 accounted for approximately 27 per cent of total mill feed during the third quarter.
“Also during the third quarter, we made excellent progress with infrastructure work intended to set us up well for mining in 2012. For example, we advanced sill development in the UM1 to the 545 Level in support of mining 130,000 tonnes of UM1 material early next year. We also have ramped from the 650 Level up to the 480 Level and down to the 690 Level. Our goal is to reach the 730 Level by the end of the year, at which time we will begin work to establish multiple mining horizons into the UM1 Zone.”
Significant development material was processed as part of the Thunder Creek advanced exploration program during the third quarter as the company prepared to extract a bulk sample off the 730 Level.
Based on anticipated throughput levels at Bell Creek Mill, higher tonnes and grades from the Timmins Mine UM1 Zone and increased output from advanced exploration activities at Thunder Creek Bell Creek Mine, Lake Shore Gold expects production in 2011 to be within the low to mid-point of its previously announced target range of 85,000 to 100,000 ounces of gold.
“Production growth is one part of the Lake Shore Gold story,” the company noted in a press release. “We are also targeting significant growth in resources over the next six months. In support of this target, we completed drilling in September for an initial resource at Thunder Creek, commenced work at our Fenn-Gib project for an initial resource to be announced by the first quarter of 2012 and continued drilling and other work in order to update our existing reserves and resources at Timmins Mine, Bell Creek and the Thorne property (Gold River Trend) by the end of March 2012.”
