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Lake Shore Gold Corp. (TSX:LSG) announced its annual reserve update, which include a 29 percent increase in total reserves amounting to 773,300 ounces (5,483,00 tonnes at an average grade of 4.4 grams per tonne).
Lake Shore Gold Corp. (TSX:LSG) announced its annual reserve update, which include a 29 percent increase in total reserves amounting to 773,300 ounces (5,483,00 tonnes at an average grade of 4.4 grams per tonne). The increase in reserves from the previous year’s estimate, which was 598,800 ounces (4,039,000 tonnes at an average grade of 4.6 grams per tonne), surpassed its target of replacing reserves mined in 2014.
As quoted in the press release:
Reserves at Timmins West Mine grew 4 percent to 509,700 ounces (3,691,000 tonnes at an average grade of 4.3 grams per tonne) from the previous estimate of 492,200 ounces (3,332,000 tonnes at an average grade of 4.6 grams per tonne). Reserves at Bell Creek Mine more than doubled from the previous estimate, increasing to 263,600 ounces (1,792,000 tonnes at an average grade of 4.6 grams per tonne) from 106,600 ounces (706,900 tonnes at an average grade of 4.7 grams per tonne). The strong growth in reserves at Bell Creek Mine significantly extends the mine’s reserve life and also provides the Company with an opportunity to increase production going forward.
Tony Makuch, president and CEO of Lake Shore Gold, commented:
The primary objective of drilling at both Timmins West Mine and Bell Creek Mine in 2014 was upgrading resource classifications and converting resources to reserves. We surpassed our goal of replacing reserves mined in the year by doubling total reserves at Bell Creek and adding to our reserves at Timmins West Mine. In 2015, our goals are to replace reserves mined during the year as well as increase our overall resource base to drive further reserve expansion. The 144 Gap discovery is the focus of our exploration program in 2015 with our target being to establish a first resource for the end of the year. Moving forward, our key priorities remain to consistently achieve safe and efficient operations, generate significant free cash flow, replace the reserves we mine and build resources in support of long-life production and long-term value creation.
In regards to Q1 of 2015, Makuch added:
Looking at our performance, we are having a strong first quarter of 2015, with production, average grades and unit costs on track to beat expected levels. We have also continued to generate net free cash flow, with cash and bullion having increased more than $10 million so far this year, to approximately $72 million. We have also continued to reduce debt, with three payments remaining on our senior secured credit facility.
Click here to read the full Lake Shore Gold Corp. (TSX:LSG) press release.