TORONTO, ONTARIO--(Marketwire - Nov. 11, 2009) - Lake Shore Gold Corp. (TSX: LSG) ("Lake Shore Gold" or "the Company") today reported financial and operating results for the third quarter and first nine months of 2009 and announced plans to commence an accelerated underground advanced exploration program for the Thunder Creek property. Key operating highlights are provided below.
- Work on the Timmins Mine shaft 650 Level commenced during the third quarter and involved development on the 650 Level, 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 those predicted by the Resource and Reserve model that supports the most recent National Instrument ("NI") 43-101 Report.
- The Timmins Mine ramp reached 1,370 metres ("m") of advance by the end of the third quarter of 2009, representing a vertical depth of approximately 200 m, in line with the Company's target for the year. Work continued to largely focus on development and advanced exploration work to define and expose the near-surface vein systems within the vein zones. The reserve in the upper portion of the deposit was downgraded by approximately 14,000 ounces in the NI 43-101 Technical Report filed on October 6, 2009.
- Refurbishing of the Bell Creek Mill to a capacity of 1,500 tonnes per day was completed near the end of the third quarter. As of November 9, 2009, the Company had poured approximately 4,000 ounces of gold.
- The advanced exploration program at the Company's Bell Creek Complex continued with the Bell Creek shaft currently (as of November 9, 2009) de-watered to the 250 m level and the ramp at Bell Creek having advanced a total of 880 m, with an additional 110 m of advance towards the Vogel property.
- Exploration Results released from Thunder Creek during third quarter included 12.17 grams per tonne ("gpt") gold ("Au") over 9.00 m, with Hole TC09-73 successfully extending the main Porphyry structure, with gold mineralization, to a 1,125 m vertical depth.
- Encouraging results from Bell Creek, including intercepts of 12.63 gpt Au over 11.65 m (July 21, 2009), 12.67 Au gpt over 14.40 m (October 1, 2009) and 5.13 gpt Au over 26.40 m (November 5, 2009). The mineralization at Bell Creek has been extended to a plunge length of approximately 1,250 m with a continuous high-grade mineralized system established from the 500 m level to 1,000 m which remains open at depth and along strike.
Project spending in the first nine months of 2009, including exploration expenditures of $11.9 million, totaled $66.0 million (excluding non-cash charges and changes in working capital). The Company expects its expenditures in 2009 to be in line with the previously announced budget of $89 million.
Subsequent Events
On November 6, 2009, Lake Shore Gold completed a business combination with West Timmins Mining Inc. ("West Timmins") through which the Company acquired all of the outstanding common shares of West Timmins with shareholders of West Timmins receiving 0.73 of a Lake Shore Gold common share for each common share of West Timmins they held. Lake Shore Gold issued approximately 104 million common shares pursuant to the transaction. With the transaction's completion, Lake Shore Gold has established a new gold mining complex in the Timmins Camp. The Timmins West Gold Mine Complex comprises the Company's Timmins Mine, the consolidated Thunder Creek project and approximately 120 square kilometers of additional highly prospective land along the Timmins mine trend west of the Mattagami River fault.
On October 23, 2009, the Company entered into an agreement with Goldcorp Canada Ltd. and Goldcorp Inc., to purchase approximately 28 square kilometers of prospective exploration property in the surrounding vicinity of the Company's Bell Creek Complex ranging from a project with a historic resource, Marlhill Mine, to early stage targets with significant exploration potential. Consideration for the transaction totals $20 million ($15 million in cash and the remainder in shares of Lake Shore Gold). The transaction is subject to regulatory approval, with closing expected in December.
On October 7, 2009, the Company issued a National Instrument 43-101 ("NI 43-101) technical report (the "Report") for the Timmins Mine, which was required for incorporation by reference in a circular mailed to shareholders of West Timmins. Highlights of the Report included: an updated reserve estimate totaling 3.4 million tonnes at 7.52 grams per tonne containing 812,000 ounces on a cut basis (826,000 ounces previously); peak annual production of 120,000 ounces of gold, cash operating costs, at peak output, of US$322 per ounce, an additional capital requirement in 2010 to bring the project to commercial production of $33 million with $29 million of sustaining capital expected over the remaining project life, and an internal rate of return, assuming a gold price of US$950 per ounce and based on the $62 million of capital expected from the end of 2009, of 240%.
Outlook
The Company has commenced an underground advanced exploration program for the Thunder Creek property with two drifts planned from the Timmins Mine at the 650 Level and 200 Level targeting high-grade mineralization at Thunder Creek. The Company expects to reach mineralization at Thunder Creek by the third quarter of 2010.
Prioritizing development at Thunder Creek as part of the overall Timmins West Mine Gold Complex is intended to accelerate growth in the Company's production capacity. The Company's goal for Thunder Creek is by the end of 2010 to have completed a NI 43-101 resource estimate for the property and to have commenced processing ore from the Thunder Creek advanced exploration program.
Given the near-term prioritizing of drifting from Timmins Mine to Thunder Creek, focusing work at the 650 Level at Timmins Mine on drilling and on accessing and expanding resources in the Ultramafic and Footwall zones, and the complexity and continuity of the near-surface vein systems in the ramp, the Company has revised its target for 2009 to 7,500 ounces. The targets for 2010 and 2011 of 100,000 ounces and 200,000 ounces, respectively, remain unchanged and will be updated as progress is made underground at Thunder Creek, Bell Creek and the other Bell Creek Complex properties.
Anthony (Tony) Makuch, President and CEO of Lake Shore Gold, commented: "We continue to make excellent progress with our exploration, advanced exploration and development programs. With the completion of the West Timmins transaction, we are now going to move aggressively to access Thunder Creek underground. Our efforts are aimed at building the production capacity of Lake Shore Gold as much as possible over the next year. By the end of 2010, we expect to be in commercial production at Timmins Mine, to be approaching pre-production at the Bell Creek Complex and to have commenced processing ore from the Thunder Creek advanced exploration program.
"At the Timmins Mine, results of underground drilling, sampling, mapping and development to date in the Ultramafic Zone suggest that grades and widths are consistent with the recently released NI 43-101 reserve and suggest that the tonnage and ounces for the Ultramafic Zone resource could be expanded at similar grades. At Bell Creek, exploration results continue to be excellent and confirm the presence of a large gold system extending to depth. Our belief in the significant potential of the Bell Creek Complex properties and the New Mine Trend in Timmins was a key factor in our decision to acquire a large land package in the area from the Porcupine Gold Mines Joint Venture."
Third Quarter and First Nine Months 2009 Operations Review
Nine months ended
Project and Exploration Spending ($'000) September 30, 2009(i)
-------------------------------------------------------------------------
Resource property and deferred exploration
Timmins Mine $37,130
Bell Creek Mill 13,196
Bell Creek mine and exploration properties 8,796
Thunder Creek Joint Venture (Company's share) 1,963
Casa Berardi net 920
Other projects 253
---------------------
$62,258
---------------------
---------------------
Property, plant and equipment
Timmins Mine 2,047
Bell Creek Mill 397
Bell Creek Mine 1,287
---------------------
$3,731
---------------------
---------------------
-------------------------------------------------------------------------
Total Project and Exploration Spending $65,989
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Project and Exploration Spending reported above for the nine months
ended September 30, 2009 exclude noncash charges of $2.8 million for
resource property and deferred exploration, $8.3 million for property,
plant and equipment and changes in working capital.
Timmins Mine Project
During the nine months ended September 30, 2009, the Company spent $39.2 million on the Timmins Mine project (including advanced exploration, ramp development and exploration drilling expenditures as well as $2.0 million on property, plant and equipment).
The Company is 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. During the nine months ended September 30, 2009, the Company's spending on advanced exploration at Timmins totaled $17.5 million.
On May 13, 2009, the Timmins shaft reached the 650 Level. The 650 Level shaft station was completed as of June 2, 2009 and development from the 650 Level towards the ore in the Ultramafic Zone, representing approximately 60% of the Timmins Mine deposit, commenced in July. Work on the Timmins Mine shaft during the third quarter of 2009 included development on the 650 Level, diamond drilling, chip and muck sampling of development faces and geologic mapping. Approximately 10,000 tonnes of material has been extracted from the Ultramafic Zone resource area at the 650 Level and stockpiled on surface with limited processing to date. 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 block modeling and resource estimation for the 50 m horizontal slice of the Ultramafic Zone surrounding the 650 Level, incorporating results of recent underground diamond drilling and using inverse distance squared and a 50 gpt top capping, have been completed and indicate that tonnage and ounces for the Ultramafic Zone resource could be expanded from the most recent NI 43-101 resource calculation at similar grades.
The Company is continuing to carry out advanced exploration work along the 650 Level resource/reserve areas. This includes development along all of the mineralized ore zones, sampling, mapping and diamond drilling at this elevation, and sublevels at intervals both above and below the level. This work will be ongoing throughout the fourth quarter of 2009 and will carry on into the first half of 2010.
To date, the Timmins ramp has advanced approximately 1,370 metres to a vertical depth of approximately 200 metres, in line with the Company's target for the year. The vein systems in vein zones have shown weaker continuity and greater complexity than predicted in the original surface drilling. As a result, the reserve in the upper portion of the deposit was downgraded by approximately 14,000 ounces in the NI 43-101 Technical Report filed on October 6, 2009. Project spending related to the ramp during the nine months ended September 30, 2009 was $18.3 million (including $2.0 million for property, plant and equipment).
During the third quarter (August 24, 2009), the Company announced results from four underground holes (906.5 m) from the 525 Level and 650 Level of Timmins Mine. All four holes intersected zones of mineralization consistent in grade and width with intersections from previous surface drilling, with two holes also intersecting high-grade mineralization in areas outside the existing resource and two others intersecting mineralization on the edge of existing resource blocks for the Footwall Zone.
Subsequent to the end of the third quarter (October 29, 2009), results from an additional 21 underground holes (4,417 m) were released. The results continued to confirm that the overall size and shape of the main Ultramafic Zone is similar to the existing resource model and to expand the resource potential of the project.
Bell Creek Mill
The Bell Creek Mill, acquired in 2007 together with the Bell Creek Mine, was made operational in December 2008 at a capacity of 800 tonnes per day. Processing of low-grade material from development and advanced exploration work in the Timmins Mine ramp commenced at the Bell Creek Mill near the end of the first quarter of 2009. The Mill was initially running in campaigns processing material as stockpiles were established. The Mill is running on a more continuous basis as deliveries from the Timmins Mine increase, both from the ramp and shaft. In addition, work to refurbish the secondary ball mill circuit at the Bell Creek Mill was completed near the end of the third quarter which increased the Mill's capacity to 1,500 tonnes per day. To date in the fourth quarter, the Mill has continued to operate at approximately 800 tonnes per day with the secondary circuit expected to come on stream as production volumes increase. As of November 9, 2009, the Company had poured approximately 4,000 ounces of gold.
Spending at the Bell Creek Mill in the nine months ended September 30, 2009 totaled $13.2 million including processing costs as well as new surface buildings, the construction of a cyanide destruction plant and other mill improvements and repairs.
Bell Creek Mine, Vogel and Schumacher
The Company's project spending for the advanced exploration program at the 100% owned Bell Creek Mine and contiguous Vogel and Schumacher properties for the nine months ended September 30, 2009 totaled $4.8 million. The Bell Creek Complex advanced exploration program includes de-watering and rehabilitating the existing Bell Creek Mine shaft and workings and collaring a ramp at Bell Creek to be connected to the Bell Creek Mine workings and then to be driven across the Bell Creek property to the contiguous Schumacher and Vogel properties in order to access known mineralization at Vogel. As at November 9, 2009, the Bell Creek shaft had been de-watered to a depth of 250 m and the ramp at Bell Creek had advanced 880 m with an additional 110 m of advance towards the Vogel property.
Exploration Expenditures
Exploration spending for the nine months ended September 30, 2009 totaled $11.9 million (representing 92,610 metres of drilling) and included $3.4 million at the Timmins Mine project, $2.0 million at Thunder Creek, $5.3 million at the Bell Creek Complex, and $0.9 million at Casa Berardi, with the remainder at other projects.
During the nine months ended September 30, 2009, the Company announced results from the drilling (16 holes and three wedge holes, for a total of 13,592 metres) on the now 100% owned Thunder Creek property, which is located immediately adjacent to the Timmins Mine project (refer to the press releases dated March 31, May 5, June 24 and August 25, 2009 on the Company's website at www.lsgold.com). The drilling is part of the Company's ongoing 22,000 metre diamond drill program commenced in August 2008.
Results announced on August 25, 2009 included 12.17 gpt Au over 9.00 m within an overall drill intersection of 3.73 gpt Au over 80.30 m. In addition, TC09-73 successfully extended main Porphyry structure, with gold mineralization, to 1,125 metre vertical depth with potential for additional high-grade zones at this depth and below considered excellent. The August 25th results followed the most encouraging results from Thunder Creek to date, released on June 24, 2009, which included TC09-68b which intersected 12.75 gpt Au over 83.40 m.
Encouraging exploration results were also reported from the Company's 100% owned Bell Creek Complex (including the Bell Creek, Vogel and Schumacher properties). To date in 2009, the Company has announced results from 79 holes, 18 wedge holes and one hole extension (46,760 metres). Included in the results were 12.67 gpt Au over 14.5 m, including 16.73 gpt Au over 10.0 m on October 1, 2009 and 12.63 gpt Au over 11.65 m on July 21, 2009. Subsequent to the end of the third quarter, on November 5, 2009, the Company released additional results at Bell Creek, including 5.13 gpt Au over 26.40 m, including higher grade zones of 9.75 gpt Au over 5.60 m and 12.80 gpt Au over 1.5 m. The November 5th results extended the mineralization at Bell Creek to a total plunge length of approximately 1,250 m and defined a continuous high-grade mineralized system from the 500 m level to 1,000 m with the system remaining open at depth and along strike.
More information about Lake Shore Gold's third quarter and first nine month 2009 results and financial condition and liquidity is available in the Company's consolidated financial statements and management's discussion and analysis, which have been filed on SEDAR at www.sedar.com and posted to the Company's website at www.lsgold.com.
Lake Shore Gold will also host a conference call and webcast on Thursday, November 12, 2009 at 10:00 am EST to discuss the Company's third quarter 2009 performance. Those wishing to access the call can do so using the telephone numbers listed below. The call will also be webcast and available on the Company's website.
Participant call-in: 416-340-8018 or 866-225-0198
Replay number: 416-695-5800 or 800-408-3053
Replay ID: 8076047
Available until: 11:59 pm, November 19, 2009
About Lake Shore Gold
Lake Shore Gold is a mining company with a goal to become a North American mid-tier gold producer through property acquisition, exploration, new mine development and construction, and production from its Timmins, Ontario properties. The Company is currently carrying out an underground advanced exploration program at its 100%-owned Timmins Mine project, where it has both a shaft and a ramp. The Bell Creek Mill, located on the east side of Timmins, has been refurbished to a capacity of 1,500 tonnes per day. The Company is also making progress with an underground advanced exploration program at its Bell Creek Complex, including the Bell Creek Mine, Schumacher and Vogel properties, which have the potential to become the Company's second mining project in the Timmins Camp. In addition, Lake Shore Gold is pursuing a number of other highly prospective exploration properties in Timmins and other parts of Northern Ontario and Quebec, and owns a large land position in Mexico. The Company's common shares trade on the TSX under the symbol LSG.
Forward-looking Statements
Certain statements in this press release relating to the Company's exploration activities, project expenditures, business plans and financial and operating performance are "forward-looking statements" within the meaning of securities legislation. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will not be less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Lake Shore Gold's most recent Annual Information Form and other regulatory filings which are posted on SEDAR at www.sedar.com.
There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource.
FOR FURTHER INFORMATION PLEASE CONTACT:
Lake Shore Gold Corp.
Tony Makuch
President & CEO
(416) 703-6298
info@lsgold.com
Lake Shore Gold Corp.
Mark Utting
Vice-President, Investor Relations
(416) 703-6298
info@lsgold.com
www.lsgold.com
Source: Lake Shore Gold Corp.
POSEN, Ill., Nov. 11 /PRNewswire/ -- Corporate Safe Specialists (CSS) today announced the hiring of Dan Taylor as Business Development Manager for the Advanced Cash Control System (ACCS) product platform. With over 20 years of experience in the electronics and security industry, Dan brings a well rounded and unique understanding of the security market, channel penetration strategies and product planning to CSS. He will have broad responsibilities in this key management position including business development, channel management and product line development for the ACCS Platform.
(Logo: http://www.newscom.com/cgi-bin/prnh/20070119/CGF030LOGO)
"Dan comes to CSS with a wealth of industry knowledge and experience which will be invaluable as we continue to forge strategic alliances and develop new channels of opportunity for delivering cash efficiencies to retailers." States Tom Hartmann, Vice President ACCS Global.
Prior to joining CSS, Mr. Taylor held senior positions in business development, channel management, production, purchasing and supply chain management at Mars Electronics/MEI Inc.
"I am excited to bring Dan's exceptional talent to CSS," said Ed McGunn, President and CEO of the Company. "Dan will play an important leadership role in this high growth area for CSS. He will be a great addition to our management team."
About CSS: Founded in 1988, CSS is an industry leader providing innovative security solutions to retailers and restaurants globally. The ACCS line of "smart safes" deliver a fully integrated, armored-car ready cash management solution that will increase productivity, reduce cash shrinkage, optimize working capital and minimize risk of armed robbery, burglary and internal theft. CSS is the only manufacturer of safes to offer live 24/7/365 technical phone support and has a U.S. service network that can provide on-site service within four hours.
SOURCE Corporate Safe Specialists
TORONTO, ONTARIO -- (MARKET WIRE) -- 11/11/09 -- Lake Shore Gold Corp. (TSX: LSG) ("Lake Shore Gold" or "the Company") today reported financial and operating results for the third quarter and first nine months of 2009 and announced plans to commence an accelerated underground advanced exploration program for the Thunder Creek property. Key operating highlights are provided below.
- Work on the Timmins Mine shaft 650 Level commenced during the third quarter and involved development on the 650 Level, 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 those predicted by the Resource and Reserve model that supports the most recent National Instrument ("NI") 43-101 Report.
- The Timmins Mine ramp reached 1,370 metres ("m") of advance by the end of the third quarter of 2009, representing a vertical depth of approximately 200 m, in line with the Company's target for the year. Work continued to largely focus on development and advanced exploration work to define and expose the near-surface vein systems within the vein zones. The reserve in the upper portion of the deposit was downgraded by approximately 14,000 ounces in the NI 43-101 Technical Report filed on October 6, 2009.
- Refurbishing of the Bell Creek Mill to a capacity of 1,500 tonnes per day was completed near the end of the third quarter. As of November 9, 2009, the Company had poured approximately 4,000 ounces of gold.
- The advanced exploration program at the Company's Bell Creek Complex continued with the Bell Creek shaft currently (as of November 9, 2009) de-watered to the 250 m level and the ramp at Bell Creek having advanced a total of 880 m, with an additional 110 m of advance towards the Vogel property.
- Exploration Results released from Thunder Creek during third quarter included 12.17 grams per tonne ("gpt") gold ("Au") over 9.00 m, with Hole TC09-73 successfully extending the main Porphyry structure, with gold mineralization, to a 1,125 m vertical depth.
- Encouraging results from Bell Creek, including intercepts of 12.63 gpt Au over 11.65 m (July 21, 2009), 12.67 Au gpt over 14.40 m (October 1, 2009) and 5.13 gpt Au over 26.40 m (November 5, 2009). The mineralization at Bell Creek has been extended to a plunge length of approximately 1,250 m with a continuous high-grade mineralized system established from the 500 m level to 1,000 m which remains open at depth and along strike.
Project spending in the first nine months of 2009, including exploration expenditures of $11.9 million, totaled $66.0 million (excluding non-cash charges and changes in working capital). The Company expects its expenditures in 2009 to be in line with the previously announced budget of $89 million.
Subsequent Events
On November 6, 2009, Lake Shore Gold completed a business combination with West Timmins Mining Inc. ("West Timmins") through which the Company acquired all of the outstanding common shares of West Timmins with shareholders of West Timmins receiving 0.73 of a Lake Shore Gold common share for each common share of West Timmins they held. Lake Shore Gold issued approximately 104 million common shares pursuant to the transaction. With the transaction's completion, Lake Shore Gold has established a new gold mining complex in the Timmins Camp. The Timmins West Gold Mine Complex comprises the Company's Timmins Mine, the consolidated Thunder Creek project and approximately 120 square kilometers of additional highly prospective land along the Timmins mine trend west of the Mattagami River fault.
On October 23, 2009, the Company entered into an agreement with Goldcorp Canada Ltd. and Goldcorp Inc., to purchase approximately 28 square kilometers of prospective exploration property in the surrounding vicinity of the Company's Bell Creek Complex ranging from a project with a historic resource, Marlhill Mine, to early stage targets with significant exploration potential. Consideration for the transaction totals $20 million ($15 million in cash and the remainder in shares of Lake Shore Gold). The transaction is subject to regulatory approval, with closing expected in December.
On October 7, 2009, the Company issued a National Instrument 43-101 ("NI 43-101) technical report (the "Report") for the Timmins Mine, which was required for incorporation by reference in a circular mailed to shareholders of West Timmins. Highlights of the Report included: an updated reserve estimate totaling 3.4 million tonnes at 7.52 grams per tonne containing 812,000 ounces on a cut basis (826,000 ounces previously); peak annual production of 120,000 ounces of gold, cash operating costs, at peak output, of US$322 per ounce, an additional capital requirement in 2010 to bring the project to commercial production of $33 million with $29 million of sustaining capital expected over the remaining project life, and an internal rate of return, assuming a gold price of US$950 per ounce and based on the $62 million of capital expected from the end of 2009, of 240%.
Outlook
The Company has commenced an underground advanced exploration program for the Thunder Creek property with two drifts planned from the Timmins Mine at the 650 Level and 200 Level targeting high-grade mineralization at Thunder Creek. The Company expects to reach mineralization at Thunder Creek by the third quarter of 2010.
Prioritizing development at Thunder Creek as part of the overall Timmins West Mine Gold Complex is intended to accelerate growth in the Company's production capacity. The Company's goal for Thunder Creek is by the end of 2010 to have completed a NI 43-101 resource estimate for the property and to have commenced processing ore from the Thunder Creek advanced exploration program.
Given the near-term prioritizing of drifting from Timmins Mine to Thunder Creek, focusing work at the 650 Level at Timmins Mine on drilling and on accessing and expanding resources in the Ultramafic and Footwall zones, and the complexity and continuity of the near-surface vein systems in the ramp, the Company has revised its target for 2009 to 7,500 ounces. The targets for 2010 and 2011 of 100,000 ounces and 200,000 ounces, respectively, remain unchanged and will be updated as progress is made underground at Thunder Creek, Bell Creek and the other Bell Creek Complex properties.
Anthony (Tony) Makuch, President and CEO of Lake Shore Gold, commented: "We continue to make excellent progress with our exploration, advanced exploration and development programs. With the completion of the West Timmins transaction, we are now going to move aggressively to access Thunder Creek underground. Our efforts are aimed at building the production capacity of Lake Shore Gold as much as possible over the next year. By the end of 2010, we expect to be in commercial production at Timmins Mine, to be approaching pre-production at the Bell Creek Complex and to have commenced processing ore from the Thunder Creek advanced exploration program.
"At the Timmins Mine, results of underground drilling, sampling, mapping and development to date in the Ultramafic Zone suggest that grades and widths are consistent with the recently released NI 43-101 reserve and suggest that the tonnage and ounces for the Ultramafic Zone resource could be expanded at similar grades. At Bell Creek, exploration results continue to be excellent and confirm the presence of a large gold system extending to depth. Our belief in the significant potential of the Bell Creek Complex properties and the New Mine Trend in Timmins was a key factor in our decision to acquire a large land package in the area from the Porcupine Gold Mines Joint Venture."
Third Quarter and First Nine Months 2009 Operations Review
Nine months ended
Project and Exploration Spending ($'000) September 30, 2009(i)
-------------------------------------------------------------------------
Resource property and deferred exploration
Timmins Mine $37,130
Bell Creek Mill 13,196
Bell Creek mine and exploration properties 8,796
Thunder Creek Joint Venture (Company's share) 1,963
Casa Berardi net 920
Other projects 253
---------------------
$62,258
---------------------
---------------------
Property, plant and equipment
Timmins Mine 2,047
Bell Creek Mill 397
Bell Creek Mine 1,287
---------------------
$3,731
---------------------
---------------------
-------------------------------------------------------------------------
Total Project and Exploration Spending $65,989
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(i) Project and Exploration Spending reported above for the nine months
ended September 30, 2009 exclude noncash charges of $2.8 million for
resource property and deferred exploration, $8.3 million for property,
plant and equipment and changes in working capital.
Timmins Mine Project
During the nine months ended September 30, 2009, the Company spent $39.2 million on the Timmins Mine project (including advanced exploration, ramp development and exploration drilling expenditures as well as $2.0 million on property, plant and equipment).
The Company is 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. During the nine months ended September 30, 2009, the Company's spending on advanced exploration at Timmins totaled $17.5 million.
On May 13, 2009, the Timmins shaft reached the 650 Level. The 650 Level shaft station was completed as of June 2, 2009 and development from the 650 Level towards the ore in the Ultramafic Zone, representing approximately 60% of the Timmins Mine deposit, commenced in July. Work on the Timmins Mine shaft during the third quarter of 2009 included development on the 650 Level, diamond drilling, chip and muck sampling of development faces and geologic mapping. Approximately 10,000 tonnes of material has been extracted from the Ultramafic Zone resource area at the 650 Level and stockpiled on surface with limited processing to date. 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 block modeling and resource estimation for the 50 m horizontal slice of the Ultramafic Zone surrounding the 650 Level, incorporating results of recent underground diamond drilling and using inverse distance squared and a 50 gpt top capping, have been completed and indicate that tonnage and ounces for the Ultramafic Zone resource could be expanded from the most recent NI 43-101 resource calculation at similar grades.
The Company is continuing to carry out advanced exploration work along the 650 Level resource/reserve areas. This includes development along all of the mineralized ore zones, sampling, mapping and diamond drilling at this elevation, and sublevels at intervals both above and below the level. This work will be ongoing throughout the fourth quarter of 2009 and will carry on into the first half of 2010.
To date, the Timmins ramp has advanced approximately 1,370 metres to a vertical depth of approximately 200 metres, in line with the Company's target for the year. The vein systems in vein zones have shown weaker continuity and greater complexity than predicted in the original surface drilling. As a result, the reserve in the upper portion of the deposit was downgraded by approximately 14,000 ounces in the NI 43-101 Technical Report filed on October 6, 2009. Project spending related to the ramp during the nine months ended September 30, 2009 was $18.3 million (including $2.0 million for property, plant and equipment).
During the third quarter (August 24, 2009), the Company announced results from four underground holes (906.5 m) from the 525 Level and 650 Level of Timmins Mine. All four holes intersected zones of mineralization consistent in grade and width with intersections from previous surface drilling, with two holes also intersecting high-grade mineralization in areas outside the existing resource and two others intersecting mineralization on the edge of existing resource blocks for the Footwall Zone.
Subsequent to the end of the third quarter (October 29, 2009), results from an additional 21 underground holes (4,417 m) were released. The results continued to confirm that the overall size and shape of the main Ultramafic Zone is similar to the existing resource model and to expand the resource potential of the project.
Bell Creek Mill
The Bell Creek Mill, acquired in 2007 together with the Bell Creek Mine, was made operational in December 2008 at a capacity of 800 tonnes per day. Processing of low-grade material from development and advanced exploration work in the Timmins Mine ramp commenced at the Bell Creek Mill near the end of the first quarter of 2009. The Mill was initially running in campaigns processing material as stockpiles were established. The Mill is running on a more continuous basis as deliveries from the Timmins Mine increase, both from the ramp and shaft. In addition, work to refurbish the secondary ball mill circuit at the Bell Creek Mill was completed near the end of the third quarter which increased the Mill's capacity to 1,500 tonnes per day. To date in the fourth quarter, the Mill has continued to operate at approximately 800 tonnes per day with the secondary circuit expected to come on stream as production volumes increase. As of November 9, 2009, the Company had poured approximately 4,000 ounces of gold.
Spending at the Bell Creek Mill in the nine months ended September 30, 2009 totaled $13.2 million including processing costs as well as new surface buildings, the construction of a cyanide destruction plant and other mill improvements and repairs.
Bell Creek Mine, Vogel and Schumacher
The Company's project spending for the advanced exploration program at the 100% owned Bell Creek Mine and contiguous Vogel and Schumacher properties for the nine months ended September 30, 2009 totaled $4.8 million. The Bell Creek Complex advanced exploration program includes de-watering and rehabilitating the existing Bell Creek Mine shaft and workings and collaring a ramp at Bell Creek to be connected to the Bell Creek Mine workings and then to be driven across the Bell Creek property to the contiguous Schumacher and Vogel properties in order to access known mineralization at Vogel. As at November 9, 2009, the Bell Creek shaft had been de-watered to a depth of 250 m and the ramp at Bell Creek had advanced 880 m with an additional 110 m of advance towards the Vogel property.
Exploration Expenditures
Exploration spending for the nine months ended September 30, 2009 totaled $11.9 million (representing 92,610 metres of drilling) and included $3.4 million at the Timmins Mine project, $2.0 million at Thunder Creek, $5.3 million at the Bell Creek Complex, and $0.9 million at Casa Berardi, with the remainder at other projects.
During the nine months ended September 30, 2009, the Company announced results from the drilling (16 holes and three wedge holes, for a total of 13,592 metres) on the now 100% owned Thunder Creek property, which is located immediately adjacent to the Timmins Mine project (refer to the press releases dated March 31, May 5, June 24 and August 25, 2009 on the Company's website at www.lsgold.com). The drilling is part of the Company's ongoing 22,000 metre diamond drill program commenced in August 2008.
Results announced on August 25, 2009 included 12.17 gpt Au over 9.00 m within an overall drill intersection of 3.73 gpt Au over 80.30 m. In addition, TC09-73 successfully extended main Porphyry structure, with gold mineralization, to 1,125 metre vertical depth with potential for additional high-grade zones at this depth and below considered excellent. The August 25th results followed the most encouraging results from Thunder Creek to date, released on June 24, 2009, which included TC09-68b which intersected 12.75 gpt Au over 83.40 m.
Encouraging exploration results were also reported from the Company's 100% owned Bell Creek Complex (including the Bell Creek, Vogel and Schumacher properties). To date in 2009, the Company has announced results from 79 holes, 18 wedge holes and one hole extension (46,760 metres). Included in the results were 12.67 gpt Au over 14.5 m, including 16.73 gpt Au over 10.0 m on October 1, 2009 and 12.63 gpt Au over 11.65 m on July 21, 2009. Subsequent to the end of the third quarter, on November 5, 2009, the Company released additional results at Bell Creek, including 5.13 gpt Au over 26.40 m, including higher grade zones of 9.75 gpt Au over 5.60 m and 12.80 gpt Au over 1.5 m. The November 5th results extended the mineralization at Bell Creek to a total plunge length of approximately 1,250 m and defined a continuous high-grade mineralized system from the 500 m level to 1,000 m with the system remaining open at depth and along strike.
More information about Lake Shore Gold's third quarter and first nine month 2009 results and financial condition and liquidity is available in the Company's consolidated financial statements and management's discussion and analysis, which have been filed on SEDAR at www.sedar.com and posted to the Company's website at www.lsgold.com.
Lake Shore Gold will also host a conference call and webcast on Thursday, November 12, 2009 at 10:00 am EST to discuss the Company's third quarter 2009 performance. Those wishing to access the call can do so using the telephone numbers listed below. The call will also be webcast and available on the Company's website.
Participant call-in: 416-340-8018 or 866-225-0198
Replay number: 416-695-5800 or 800-408-3053
Replay ID: 8076047
Available until: 11:59 pm, November 19, 2009
About Lake Shore Gold
Lake Shore Gold is a mining company with a goal to become a North American mid-tier gold producer through property acquisition, exploration, new mine development and construction, and production from its Timmins, Ontario properties. The Company is currently carrying out an underground advanced exploration program at its 100%-owned Timmins Mine project, where it has both a shaft and a ramp. The Bell Creek Mill, located on the east side of Timmins, has been refurbished to a capacity of 1,500 tonnes per day. The Company is also making progress with an underground advanced exploration program at its Bell Creek Complex, including the Bell Creek Mine, Schumacher and Vogel properties, which have the potential to become the Company's second mining project in the Timmins Camp. In addition, Lake Shore Gold is pursuing a number of other highly prospective exploration properties in Timmins and other parts of Northern Ontario and Quebec, and owns a large land position in Mexico. The Company's common shares trade on the TSX under the symbol LSG.
Forward-looking Statements
Certain statements in this press release relating to the Company's exploration activities, project expenditures, business plans and financial and operating performance are "forward-looking statements" within the meaning of securities legislation. The Company does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and that actual mineralization on properties will not be less than identified mineral reserves. The Company makes no representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in Lake Shore Gold's most recent Annual Information Form and other regulatory filings which are posted on SEDAR at www.sedar.com.
There is no guarantee that drill results reported in this news release will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource.
Contacts: Lake Shore Gold Corp. Tony Makuch President & CEO (416) 703-6298 info@lsgold.com Lake Shore Gold Corp. Mark Utting Vice-President, Investor Relations (416) 703-6298 info@lsgold.com www.lsgold.com
CARLSBAD, Calif., Nov. 11 /PRNewswire/ -- On Veterans' Day, the Upper Deck Company is very proud to announce that it is partnering with "Operation Gratitude," a non-profit organization that sends 100,000-plus "care packages" annually to U.S. service members deployed in hostile regions across the world. The trading card manufacturer is launching the "Upper Deck's Million Pack March for the Troops" campaign in an effort to send sealed packs of donated Upper Deck trading cards (sports and entertainment-based products) to deserving U.S. military men and women overseas.
(Logo: http://www.newscom.com/cgi-bin/prnh/20091111/LA09905LOGO)
(Logo: http://www.newscom.com/cgi-bin/prnh/20080710/LATH516LOGO-a)
To encourage customers and card collectors to donate some of their surplus card packs to the deserving troops, Upper Deck's is kicking the campaign off by donating 100,000 packs of cards to get the ball rolling. The goal will be to reach the 1,000,000-pack plateau by Veterans' Day 2010. To create awareness, Upper Deck will host donation drives at major industry shows including the National Sports Collectors Convention in Baltimore in August while also working with its network of certified Upper Deck Diamond Dealers and hobby shops to establish donation drop-off points.
"We are very excited to partner with a dignified organization like Operation Gratitude," said Kerri Kauffman, Upper Deck's director of Marketing. "The hard-working and brave U.S. military men and women who are serving overseas deserve a fun distraction to help them get through their difficult days and lonely nights. Hopefully, opening up a pack of Upper Deck sports or entertainment trading cards will make them feel a little bit closer to being home."
"Operation Gratitude is honored to join with Upper Deck to collect and send a million card packs to our men and women deployed in combat zones," said Carolyn Blashek, founder of the organization. "Not only will the troops enjoy the cards among themselves, but the cards are also fantastic items to distribute to the Iraqi and Afghani children as gestures of friendship and support."
Upper Deck's Customer Service department routinely receives donations requests from military members overseas. Here's an excerpt from a recent letter sent in by a U.S. serviceman stationed in Afghanistan: "We were all reminiscing about how we all used to collect cards and used to know players' stats and birthdays. Sports are a big morale booster over here. We all think our hometown heroes are better than the next soldier's, and getting mail is an awesome morale booster. Just opening letters and packages make us forget where we are at for that moment in time."
Customers interested in donating any of their sealed packs of Upper Deck trading cards can send them to the following address:
Operation Gratitude/California Army National Guard
Attn. Upper Deck's Million Pack Drive to Support the Troops
17330 Victory Boulevard
Van Nuys, CA 91406
About Upper Deck
Upper Deck is the leading sports and entertainment trading card and collectibles company. For more information on Upper Deck and its products please visit www.upperdeck.com.
About Operation Gratitude
Operation Gratitude ( www.OperationGratitude.com ) is the 501 (c) (3) non-profit, volunteer organization that annually sends 100,000+ care packages filled with snacks, entertainment items and personal letters of appreciation addressed to individual U.S. Service Members deployed in hostile regions. Our mission is to lift morale, bring a smile to a service member's face and express to all Armed Forces the appreciation and support of the American people. Each package contains donated product valued at ~$100 and costs the organization $11 to assemble and ship. By the end of 2009, Operation Gratitude will have shipped more than 500,000 packages to American Military deployed overseas.
SOURCE Upper Deck
PARIS -- (MARKET WIRE) -- 11/11/09 -- EURO Ressources S.A. (PARIS: EUR) today announced its unaudited consolidated financial results for the third quarter and nine months ended 30 September 2009 prepared in accordance with International Financial Reporting Standards as adopted by the European Union. EURO reported a profit of EUR 7.74 million (EUR 0.12 per share) for the first nine months ended 30 September, 2009 and a profit of EUR 3.12 million (EUR 0.05 per share) for the third quarter of 2009; this compares to a profit of EUR 4.23 million (EUR 0.07 per share) for the first nine months of 2008 and EUR 2.20 million (EUR 0.04 per share) for the third quarter of 2008. All financial amounts are expressed in Euros.
The following comments on the results for the quarter and nine months ended 30 September, 2009 are taken from our Management's Discussion and Analysis:
Three months ended September 30, 2009 compared to three months ended September 30, 2008
We had record revenue of EUR 5.28 million in the quarter ended 30 September 2009 compared to EUR 3.20 million in the third quarter of 2008, an increase of 65%. Substantially all of this revenue is income from the Rosebel royalty. The Rosebel gold mine produced a record 111,657 ounces of gold during the third quarter of 2009, a 28% increase from the 86,955 ounces of gold produced in the third quarter of 2008. EURO continues to benefit from the improvements in throughput, cut-off grade optimization and recovery that were completed towards the end of 2008, and in addition there was a 10% increase in the average gold price for the quarter end 30 September 2009 (Q3:2009: $959.97/ounce, Q3 2008: $871.60/ounce).
EURO recorded liquidated gold hedging costs for the third quarter 2009 of EUR 1.0 million related to the 2,850 ounces of gold that were scheduled to be settled on October 29, 2009, this compares to no liquidated gold hedging costs for the same period in 2008.
General and administrative expenses in the third quarter of 2009 were EUR 0.52 million, as compared to EUR 0.63 million during the same quarter last year, a decrease of 17% due in part to the fact that last year in the third quarter of 2008, EURO started to incur substantial costs related to the takeover by IAMGOLD. EURO recorded no interest expense in the third quarter of 2009, because EURO repaid the loan to Macquarie Bank Limited ("Macquarie") in full in December of 2008, this compares to an interest expense of EUR 0.01 million for the same period last year.
The increase in amortization expenses to EUR 0.16 million (2008: EUR 0.15 million), a 6% increase reflects the higher gold production for the quarter ended September 30, 2009.
Hedge positions implemented as a condition of our loan from Macquarie Bank resulted in a mark-to-market gain of EUR 0.70 million (2008: a gain of EUR 0.99 million), a decrease of 29% due to the large reduction of ounces of gold hedged from 17,100 to 5,700.
Nine months ended September 30, 2009 compared to nine months ended September 30, 2008
We recorded a net profit EUR 7.74 million (EUR 0.12 per share) during the first nine months of 2009, compared to a net profit of EUR 4.23 million (EUR 0.07 per share) for the first nine months of 2008. We had record revenue from royalties for the first nine months of 2009 of EUR 14.10 million compared to EUR 9.22 million for the first nine months of 2008, with EUR 13.73 million earned from the Rosebel royalty (EUR 8.99 million during the same period last year). The 53% increase in revenue for the first nine months of 2009 is mainly due to a record increase in gold production for the first nine months of 2009 to 308,322 ounces of gold, as compared to 241,480 ounces of gold for the same period last year, a 28% increase. There was also a 4% increase in the average gold price for the nine months ended September 30, 2009 as compared to the same period last year (2009: $930.60/ounce, 2008: $897.15/ounce).
We have recognized a future tax credit on balance sheet of EUR 1.77 million being EUR 0.69 million against the unrealized mark-to-market position at September 30, 2009 and EUR 0.97 million in respect to cumulative net operating losses.
Liquidity
Consolidated cash and cash equivalents at 30 September 2009 totalled EUR 7.72 million. All of the cash is unrestricted, since Macquarie Bank Limited revised its credit agreement with EURO at the beginning of August 2009. We expect to have sufficient cash flow to fund our on-going operational needs.
About EURO
EURO is a French company whose principal asset is the Rosebel Royalty on gold production at the Rosebel mine operated by IAMGOLD Corporation ("IAMGOLD"). EURO has approximately 62.5 million shares outstanding. Since the 17th of December 2008, EURO is a majority owned subsidiary of IAMGOLD. IAMGOLD owns approximately 85.75% of EURO.
Statements Regarding Forward-Looking Information: Some statements in this news release are forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain and involve risks and uncertainties. There can be no assurance that future developments affecting the Company will be those anticipated by management.
Not for distribution to United States newswire services or for dissemination in the United States. The securities referred to herein have not been registered under the US Securities Act of 1933 and may not be offered or sold in the United States or to a US person absent registration or an applicable exemption from registration.
Additional information relating to EURO Ressources S.A. is available on SEDAR at www.sedar.com. Further requests for information should be addressed to:
This information is provided by HUGIN
Larry E. Phillips Directeur-Général Tel:+1 4163604710 Email : Email Contact Susanne A. Hermans Vice-President Finance Tél.: +1 303 204 7771 Email : Email Contact
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