Timmins Gold Project
Highlights
- Timmins Mine on track for commercial production during fourth quarter 2010 with production (including pre-production) during the year expected to total approximately 50,000 ounces.
- On April 26, 2010, Lake Shore Gold announces identification of new high-grade mineralization outside current resources in near Ultramafic and Footwall zones and expansion of previously identified high-grade core of mineralization in Ultramafic Zone near the 650 Level.
- On February 18, 2010, Company announced drilling results extending the mineralization at Timmins Mine by 130 metres at depth and 100 metres to the west of the existing deposit. Hole TG08-178f intersected 8.11 gpt over 6.00 m, including 15.92 gpt over 2.50 m.
- Results from diamond drilling and sampling in a 50-metre test block in the Ultramafic Zone at Timmins Mine, release on February 17, 2010, show increased tonnes and ounces and confirm the presence of a high-grade core averaging 10.53 gpt.
| Timmins Mine (Oct. 2009 NI-101 Report) (3.9MB PDF) |
Tonnes | Grade (g/t) | Contained Gold (ozs.) |
|---|---|---|---|
| Probable reserves | 3,400,000 | 7.52 | 812,000 |
| Indicated resources (1)(2) | 3,200,000 | 8.56 | 893,000 |
| Inferred resources | 890,000 | 5.74 | 165,000 |
(2) Based on sensitivity analysis using an uncut grade of 12.24 gpt, indicated resources totaled 1,278,000 ounces
Overview
Lake Shore Gold acquired the Timmins Mine project (formerly Timmins West) in 2003 through the acquisition of Holmer Gold Mines Limited. Timmins Mine is located at the west end of the Timmins gold mining district, 18 kilometres west of the city and 42 kilometres by road from the Bell Creek Mill, where ore from the Timmins project will be treated. The Timmins property consists of a contiguous block of 23 claims (12 leased claims, which are grouped into two 21-year leases and 11 individual patented claims) covering approximately 395 hectares. One claim is subject to a royalty (not related to location of existing reserve). All 23 claims cover both mining and surface rights.
Advanced Exploration/Pre-production
The Company is currently carrying out an advanced exploration program for delineation of bulk sampling of the Footwall, Ultramafic and Main Zones of the property, along with supporting an underground diamond drilling program to both expand the currently identified probable reserve and identify new resources. This work involves sinking a shaft and collaring the 200 metre, 400 metre, 525 metre and 650 metre levels and driving a ramp from surface. The shaft sinking surface plant was completed during the second quarter of 2008 and hoist commissioning was completed in July. The shaft sinking program commenced on July 31, 2008 and was completed to the 710 metre level by the end of March 2010. The Company completed the installation of the loading pocket, bins and shaft conveyances in early May 2010 with initial skipping of waste commencing around the middle of that month. Initial stoping is targeting for early July 2010 with commercial production expected to be declared during the fourth quarter of the year.
Work off the 650 Level to date has focused on ramp development to the 630 Level, drifting to Thunder Creek, definition diamond drilling, chip and muck sampling of development faces and geologic mapping. Results from diamond drilling, sampling, mapping and development are still ongoing, but suggest that the overall trend for grades and widths of the mineralization in this area is similar to that predicted by the Resource and Reserve model that supports the most recent National Instrument 43-101 report.
In addition, recent modeling and estimation of indicated resources near the 650 Level using results of all diamond drill holes assayed to date shows an updated indicated resource for the Ultramafic and Upper Footwall zones in the test block area of 335,005 tonnes grading 8.07 gpt (86,969 ounces) compared to the original resource of 263,136 tonnes grading 9.30 gpt (78,710 ounces). The new estimation was conducted using inverse distance block modeling with application of a 95 gpt capping factor, which represents the 99th percentile of all gold assays in the zone. The increased tonnage and ounces for the new estimation is the result of using more rigorous estimation methods, reducing cutoff grades and assuming more of a bulk approach for mining of the Ultramafic Zone compared to the estimates in the latest National Instrument 43-101 report (October 2009).
As of March 31, 2010, the ramp from surface at Timmins Mine had reached the 250 metre level with a total of 32,251 tonnes of low grade materal having been mined from the small, near-surface vein zones, during the first quarter of the year. As of May 5, 2010, the ramp had reached the 260 metre level access at the Timmins Mine.
Exploration Potential
Gold mineralization at the Timmins Mine project has now been delineated to a depth of 1,330 metres below surface, with alteration, veining and mineralization within the Footwall Deposit and Ultramafic Deposit remaining open at depth. This is highlighted by deep drill intercepts including 65.65 grams per tonne gold over 4.0 metres within the Ultramafic Zone and 7.62 grams per tonne gold over 5.8 metres on the Footwall Zone from previous drilling and new intercepts announced on February 18, 2010. The most significant results from recent surface drilling were from TG08-178f which intersected 8.11 gpt over 6.00 metres, including 15.92 gpt over 2.50 metres, approximately 130 metres down plunge and 100 metres to the west of the previously defined Timmins Mine mineralization at a 1,330 metre vertical depth (1,485 metres down plunge). The intersection occurs in strongly deformed mafic volcanic rocks containing ankerite-albite alyeration and 2-5% sulphides (Footwall style mineralization). TG08-178f is interpreted to have passed through the top of a newly emerging fold nose located to the north of the main or South ultramafic fold nose which controls the bulk of mineralization at the Timmins Mine, including that which is currently being drilled and developed on the 650 level. Both fold structures remain open down plunge.
The Company´s Qualified Person (“QP”) for surface drilling for the Timmins Mine property is Pat Pope, P.Geo. The QP for under the underground drill program at the Timmins Mine property is Stephen Conquer, P.Geo. and for resource estimation is Bob Kusins, P.Geo. As QP, they have prepared or supervised the preparation of the scientific or technical information for the property. All three QPs are employees of Lake Shore Gold.
October 2009 Technical Report (3.9MB PDF)
October 2007 Technical Report (3.6MB PDF)
