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Lake Shore Gold Corp.(TSX:LSG)(NYSE Amex:LSG) today announced a new reserve estimate for the Company’s Timmins West Mine, located 18 kilometres west of theTimmins, Ontario. Timmins West Mine is a commercial producing underground mining operation involving the extraction of ore from two adjacent deposits, Timmins Deposit and Thunder Creek Deposit.
The new reserve estimate for the Timmins West Mine includes 823,848 ounces Au (4,922,180 tonnes grading 5.21 gpt), all in the probable reserve category. The reserves were estimated from the conversion of existing indicated resources totaling 1,122,500 ounces (5,826,000 tonnes grading 5.99 gpt). Current inferred resources of 791,500 ounces (4,272,000 tonnes grading 5.76 gpt) were not included in the reserve calculation.
“For an underground mine early in its operating life, 3 to 5 years of reserves is a reasonable and appropriate level. We are very pleased that we have achieved the high end of that range with our new reserve at Timmins West Mine,” said President and CEO of Lake Shore Gold Tony Makuch.
He added that the company aims to complete the required drilling and other work to continue to build both its reserves and resources in order to maintain an ongoing 3 to 5 year reserve life.
“We are also pleased with the conversion rate of indicated resources into reserves and are encouraged that our average grade matches very closely to the grade used in our Preliminary Economic Assessment (“PEA”),” said Makuch.
For more details, please visit the company’s news room.
