Lake Shore Gold Reports Record Quarterly Production56 minutes ago by Marketwire
Lake Shore Gold Corp. (TSX: LSG)(NYSE MKT: LSG) -
-- Record gold production of 53,000 ounces in Q1/15, 19% increase from
Q1/14
-- Average grade in Q1/15 of 5.7 grams per tonne versus 5.1 grams per tonne
in Q1/14
-- Senior secured debt repayments of $4.3 million in Q1/15, @ $3.0 million
remaining (to be repaid by end of May)
-- Cash and bullion of $77.0 million at March 31, 2015
-- 29% increase in ore reserves announced on March 12, 2015
-- Continued exploration success at 144 Gap Zone, 7th surface drill added
in Q1/15.
Lake Shore Gold Corp. ("Lake Shore Gold" or the "Company") today announced record quarterly production in the first quarter of 2015 ("Q1/15"). A total of 53,000 ounces of gold was produced, a 19% increase from the 44,600 ounces produced in the first quarter of 2014 ("Q1/14"). Mill throughput during Q1/15 totaled 299,900 tonnes at an average grade of 5.7 grams per tonne with average mill recoveries of 96.7%. Gold poured in Q1/15 totaled 52,000 ounces, while gold sales were 52,600 ounces at an average price of US$1,219 ($1,504) per ounce.
In addition to record production, other key highlights in Q1/15 include: a $15.5 million increase in cash and bullion,(1) to $77.0 million; $4.3 million of debt repayments, with two monthly payments remaining on the Company's senior secured debt; a 29% increase in ore reserves; and, the release of encouraging exploration results from the 144 Gap Zone, including tripling the zone's strike length and identifying a high-grade core.
Tony Makuch, President and CEO of Lake Shore Gold, commented: "We had a very successful first quarter highlighted by strong production results, considerable growth in our cash position and further debt reduction. We also announced a significant increase in reserves and continued to advance the 144 Gap Zone. Our average grade for the quarter was the highest since we declared commercial production and reflected a combination of mine sequencing and improvements in grade control.
"Looking ahead, we are maintaining our current guidance for 2015 while we assess the outlook for the remainder of the year. Our 2015 guidance includes production of 170,000 to 180,000 ounces of gold, cash operating costs(2) of US$650 to US$700 per ounce sold, all-in sustaining costs(3) of US$950 to US$1,000 per ounce sold and total production costs of approximately $125.0 million. We will be releasing our preliminary cost estimates for Q1/15 over the next week and expect our average cash operating costs and all-in sustaining costs for the quarter to be better than our full-year targets."
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Three Months Ended
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Mar. 31, Dec. 31, Mar. 31,
2015 2014 2014
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Tonnes milled 299,900 331,500 283,800
Recovery (%) 96.7 96.7 96.6
Grade (grams/tonne) 5.7 4.2 5.1
Gold ounces
Produced 53,000 43,200 44,600
Poured 52,000 42,400 45,700
Sold 52,600 41,200 43,000
Gold price (US$/ounce) 1,219 1,200 1,294
Gold price ($/ounce) 1,504 1,360 1,430
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Qualified Person
Scientific and technical information contained in this press release related to mine engineering and production has been reviewed and approved by Natasha Vaz, P.Eng., Vice-President, Technical Services, who is an employee of Lake Shore Gold Corp., and a "qualified person" as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
Scientific and technical information related to resources, exploration drilling and all matters involving mine production geology contained in this press release, or source material for this press release, was reviewed and approved by Eric Kallio, P.Geo., Senior Vice-President, Exploration. Mr. Kallio is an employee of Lake Shore Gold Corp., and is a "qualified person" as defined by NI 43-101.
