Drill Tracker Weekly: Lake Shore Gold Continues To Expand 144 Gap Discovery


Drill Tracker Weekly is not exclusive to Resource Investing News and is published with permission from Mackie Research Capital Corporation. It highlights drilling results in context with our database of over 10,000 drilling and trenching results. The purpose of this report is to highlight drilling and trenching results that stand out from the pack and compare them to their peer group. This report does not constitute initiation of coverage or a recommendation.

Lake Shore Gold (TSX:LSG)

Price: $1.19

Market cap: $518 million

Cash estimate: $70 million

Project: Thunder Creek

Country: Ontario, Canada

Ownership: 100 percent

Historical resources: 3.7 million tonnes @ 4.3 g/t gold

Project status: Resource development

lake shore gold chart Lake Shore Gold continues to define the high-grade core of the recently discovered 144 Gap Zone adjacent to the Thunder Creek deposit on its 100% owned Timmins West Mine in Ontario. Lake Shore Gold acquired the Thunder Creek deposit in 2009 though the $319 million purchase of West Timmins Mines. Preliminary drilling into the high-grade core since the October 2014 discovery hole has now outlined a core zone extending 300 metres vertically with a width of 50 to 125 metres and 75-125 metres along strike. Highlights from the current drilling include 55.0 metres grading 5.74 g/t Au starting at a depth of 837 metres including 21.1 metres of 11.79 g/t Au. The mineralization is hosted within a similar syenite intrusion as the nearby Thunder Creek Deposit in association with the same volcanic/ultramafic/intrusive/sedimentary contacts. Gold mineralization is associated with quartz veining, pyrite, sheelite and/or galena with visible gold within the quartz veins. The 144 Gap Zone is within 500 metres from the Thunder Creek Deposit and to facilitate lower cost underground drilling. The company is currently developing an exploration drift from Thunder Creek, which is expected to be completed by Q3/2015. The Company has budgeted $18 million to complete a 120,000 metre surface and underground drilling program for 2015 with the goal of replacing annual production with new upgraded resource ounces. The Company expects to announce a maiden resource for 144 Gap in early 2016. In Q1/2015, the Company exceeded expectations with record production of 53,000 ounces gold for the quarter at a cash operating cost of $510 per ounce sold. All in sustaining costs are $750 per ounce gold.

lake shore gold chart 2

Discovery history 144 Gap (October 2014): 46.0 metres @ 5.37 g/t gold

Current holes (144 Gap): 55.0 metres @ 5.74 g/t gold including: 21.1 metres @ 11.79 g/t gold. 8.2 metres @ 8.81 g/t gold