Wednesday, May 21, 2008

Lake Shore Gold predicts 200,000 ounces per year

Lake Shore Gold, the company developing the new mine in the city’s west end, says it expects to be producing 200,000 ounces of gold by 2011.
That would put it in league with all the local gold production for Goldcorp Porcupine Gold Mines (PGM), the city’s largest gold producer at the moment. Goldcorp’s operation summary shows 2007 year-end gold production for the Porcupine operations at 158,400 ounces. In a project update statement released Tuesday, Lake Shore says it envisions first ore deliveries to occur early in 2009 from the Timmins West mine currently being built in Bristol Township, near Highway 101 just east of the Highway 144 turnoff.
Currently the Timmins West site is vigorous with activity. A new hydroelectric substation has been installed, a shaft is being sunk, a headframe is being built and several surface buildings are under construction.
There will be no mill at the site. The ore from the mine is to be trucked along Highway 101 to the site of the old Bell Creek mine and mill in Porcupine.
Refurbishing of the Bell Creek mill is slated for this year, initially to handle 800 tonnes per day of ore, and then eventually increased to 1,500 tonnes per day, the statement says.
"Lake Shore Gold is on track with its goal to become Canada's next intermediate gold producer at a time when the outlook for gold prices remains highly favourable,” says company president and CEO Tony Makuch, in the news release.
“We have an excellent portfolio of properties, with 1.2 million ounces of probable reserves (uncut) already having been identified at our Timmins West property,… and very encouraging prospects for identifying additional reserves both at Timmins West and at a number of our other properties,” he continued.
The other properties include the old Bell Creek Mine, and the Vogel property, located between Bell Creek and Goldcorp’s lucrative Hoyle Pond property.
"While much work remains, we are targeting solid production growth, starting with an estimated 30,000 ounces of gold in 2009 from Timmins West. Production could then grow to just over 100,000 ounces in 2010 as we increase output at Timmins West and begin producing from the Vogel ramp. In 2011, the Company anticipates that production could reach up to 200,000 ounces reflecting increased production from Timmins West and the Vogel ramp and initial output from the Bell Creek mine,” Makuch predicted.

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