GOLD MINING: Lake Shore’s Timmins mine in commercial production

ONTARIO - Lake Shore Gold of Toronto declared its Timmins underground gold mine in commercial production on Jan. 1, 2011, with an output of 12,300 oz the previous month. During December 2010 the mining rate averaged 1,700 t/d, well above the target rate of 1,500 t/d.

Ore from the Timmins mine is processed at the nearby Bell Creek mill. Throughput during Q4 2010, from the start of commissioning of the expansion in mid-October, averaged 1,650 t/d. The head grade was 7.5 g/t Au, and recoveries were 97%. Average throughput levels are expected to increase to the nominal rate of 2,000 t/d, with the potential existing to increase throughput above this level.

For the full year 2010, the Lake Shore produced 43,500 ounces of gold from the Timmins mine and Bell Creek mill. The company had a 103,500-tonne stockpile of broken ore at the end of 2010.

Additional information is posted at www.LSGold.com.