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Lake Shore Produces 24,426 Ounces Of Gold In 2012: Q2 Results
Lake Shore Gold Corp (TSX:LSG) released the second quarter operating and financial report, and produced strong results including the production of 24,426 ounces of gold.
Lake Shore Gold Corp (TSX:LSG) released the second quarter operating and financial report, and produced strong results including the production of 24,426 ounces of gold.
As quoted in the press release:
Second Quarter 2012 Highlights
- Production for the second quarter 2012 of 24,426 ounces recovered (183,215 tonnes processed at an average grade of 4.3 grams per tonne (“gpt”) gold), near the top of the Company’s target range of 20,000 – 25,000 ounces; a total of 24,298 ounces were poured during the quarter, with 24,915 ounces being sold at an average price of US$1,605 per ounceProduction for the first six months of 2012 of 41,106 ounces recovered (343,724 tonnes grading 3.87 gpt), 40,479 ounces were poured and 43,389 ounces were sold at an average price of US$1,641 per ounce.
- Production from Timmins West Mine: 18,894 ounces (136,455 tonnes @ 4.44 gpt)
- Production from Bell Creek Mine: 5,532 ounces (46,760 tonnes @ 3.83 gpt).
- Mill throughput during the quarter averaged 2,013 tonnes per day with an average recovery rate of 96.8%.
- Cash operating costs(1) per ounce of gold sold during the second quarter of 2012 were US$916. (Based on ounces produced during the second quarter, cash operating costs(1) averaged US$849 per ounce.)
- Cash operating costs(1) per ounce of gold sold during the first half of 2012 averaged US$963 per ounce (US$949 per ounce based on ounces produced).
- Cash earnings from mine operations(1) for the second quarter of 2012 of $16.8 million, up significantly from $2.6 million for the second quarter of 2011 due to an increase in gold sales, a higher average gold price and lower cash operating costs(1). Cash earnings from mine operations(1) for the first six months of 2012 totaled $26.3 million, up from $14.0 million during the first half of 2011.
- Net loss for the second quarter 2012 was $2.0 million or $0.00 per common share compared to net loss of $2.5 million or $0.01 per common share during the second quarter 2011. The net loss during the second quarter of this year largely reflected higher depreciation and depletion costs. Net loss for the first half of 2012 totaled $4.9 million ($0.01 per common share) versus $0.2 million or ($0.00 per common share) for the same period in 2011.
- Capital expenditures for the first six months of 2012 totaled $85.9 million with an additional $6.4 million of expenditures for exploration.
- Significant development, ore delineation and stope preparation work was completed during the first half of 2012 with the capital program for development of Timmins West Mine on track to position the Company for higher levels of production in 2013.Exploration success during the second quarter included major extensions of the high-grade core at the Gold River Project and the expansion of Fenn-Gib mineralization in multiple directions, as well as the identification of new exploration targets at both projects
- 5,186 metres of total development completed
- 64,875 metres of definition and delineation drilling completed.
- An updated reserve estimate was released for Timmins West Mine during the second quarter, including probable reserves of 823,848 ounces of gold (4,922,180 tonnes grading 5.21 grams per tonne), in line with the Company’s objective of establishing and maintaining three to five years of reserves ahead of production.
Tony Makuch, President and CEO of Lake Shore Gold, commented:
We performed well against our targets during the second quarter. In fact, our strong second quarter results represent the third consecutive quarter that we have met or exceeded our production targets. Growth in production from the first quarter of this year reflected increased tonnes from stope production and mining in higher-grade areas at Timmins West Mine, including the UM Zone and lower Thunder Creek Deposit, where grades during the quarter averaged approximately 5.0 grams per tonne. We also continued to make excellent progress with our development program, which by the end of this year will set us up for strong production growth going forward and position us to execute the mine plan outlined in the Timmins West Mine Preliminary Economic Assessment.
We also took steps during the second quarter to strengthen our balance sheet and effectively manage our costs to ensure we are funded to achieve our growth plans. Firstly, we arranged a $70 million credit facility with Sprott Resource Lending Partners (“Sprott”). Of The $70 million, $35 million has been received through a gold-linked note, with the remaining $35 million relating to a standby line of credit which becomes available effective November 1, 2012. In terms of our costs, we announced plans in early June to reduce our 2012 capital budget by $15 to $20 million through cost savings and the deferral of expenditures not immediately critical to achieving our key production targets.
Click here to read the full press release.
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