In Commercial Production - Achieving Rapid Growth

Emerging Mid-Tier Gold Company - Timmins

Lake Shore Gold Profile

Lake Shore Gold Corp. Toronto, Ontario: TSX – LSG: is a rapidly growing mining company that is transitioning into a mid-tier gold producer by successfully exploring and developing a number of projects in Timmins, Ontario.

  • Expected production in 2011 > 125,000 ounces gold
  • Strong Liquidity : $92M cash (Dec. 31/10) (+$16M in gold inventory at year end)
  • Corp. Credit facility of US$50M completed
  • Exploration budget to increase to $31.0 million

In Commercial Production, Achieving Rapid Growth

  • The Company's first mine, Timmins Mine, achieved commercial production effective January 1, 2011, with the Thunder Creek and Bell Creek projects being developed over the next two to three years.
  • Properties such as 144, Gold River Trend, Marlhill Mine and Vogel provide the Company with significant potential for additional discoveries in the Timmins Camp in support of future growth.
  • The Company's production in Timmins is delivered to its wholly owned milling facility, located on the east side of Timmins, which has a current operating capacity of 2,000 tonnes per day

Lake Shore Gold also owns extensive land positions throughout other parts of the Abitibi Greenstone belt in Northern Ontario and Quebec, as well as in Mexico, which provide attractive longer-term exploration potential.

Rapid Growth to Continue*

Growing production

  • Targeting 125,000 ozs Au in 2011 with significant growth planned in 2012, 2013 and 2014
  • Timmins Mine to reach full production, developing Thunder Creek and Bell Creek over the next 2 – 3 years

Improving operating costs

  • Approx. US$575/oz for commercial production in 2011, improving to around US$400/oz from all sources over next 3 years

Expanding resources

  • NI 43-101 resources doubled as of Dec. 2010, substantial growth expected over next 12 – 14 months
  • Drilling for extensions and new discoveries
  • Exploration spending ($31M in 2011) focused on extensions and new discoveries in addition to growing resources

Effectively managing capital

  • Fully funded, well positioned for future growth supported by strong cash position, rapidly growing cash flow and US$50 million credit facility

Last changed at 20-Jan-2014 06:13AM by M