LSG's Fourth Quarter and Full-Year 2011 Financial Results..
posted on
Mar 26, 2012 12:34PM
Emerging Mid-Tier Gold Company - Timmins
Press Release Details
TORONTO, ONTARIO--(Marketwire - March 26, 2012) -Lake Shore Gold Corp. (TSX:LSG)(NYSE Amex:LSG) ("Lake Shore Gold" or the "Company") today announced details of the Company's financial and operating results for the fourth quarter and full-year 2011. Key accomplishments for 2011 include significant growth in resources, including releasing initial resources for both Thunder Creek and Fenn-Gib, doubling production from a year earlier and continuing to achieve significant exploration success with a number of new discoveries and extensions announced during the year. Tony Makuch, President and CEO of Lake Shore Gold, commented: "Over the last few months we have accomplished a great deal. First, we had a strong operating performance in the fourth quarter pouring 26,550 ounces of gold, which brought full-year production to 86,565 ounces. We released initial resource estimates for Thunder Creek and Fenn-Gib in November and followed that up with updated resource estimates for Timmins West Mine and Gold River Trend in February 2012. Based on these estimates, both our indicated and inferred resources have more than doubled over the last year. Very importantly, we recently issued a Preliminary Economic Assessment ("PEA") for Timmins West Mine, which shows the excellent potential of the Mine to achieve significant production growth, low cash costs and substantial cash flows and returns, with opportunities existing for further enhancement. We have also strengthened our balance sheet by raising $50 million through royalty and equity investment transactions with Franco-Nevada Corporation ("Franco-Nevada"). "In 2012, we are on track to significantly increase our mining capacity and complete a 50% expansion of our mill by late in the year, which will set us up for strong production growth in 2013. With Timmins West, Bell Creek and Fenn-Gib, we have three multi-million ounce gold complexes in one of the world's great gold camps, and we will continue to work aggressively to demonstrate the value of our assets." 2011 and Fourth Quarter Financial Highlights 2011 and Fourth Quarter Operating Highlights
Lake Shore Gold Announces Fourth Quarter and Full-Year 2011 Financial Results, Company on Track for Rapid Production Growth by Late 2012
03/26/2012
Timmins Deposit | - | Full year: 338,021 tonnes @ 3.80 gpt for 39,983 ounces; | |
Fourth quarter: 57,516 tonnes @ 4.19 gpt for 7,496 ounces | |||
Thunder Creek | - | Full year: 154,770 tonnes @ 3.96 gpt for 19,000 ounces; | |
Fourth quarter: 80,192 tonnes @ 4.24 gpt for 10,503 ounces | |||
Bell Creek Mine | - | Full year: 178,676 tonnes @ 4.29 gpt for 24,602 ounces; | |
Fourth quarter: 48,523 tonnes @ 4.70 gpt for 6,810 ounces. |
Subsequent Events - Significant Progress in First Quarter 2012 During the first three months of 2012, the results of considerable drilling and other work performed since the beginning of 2011 were released. These results include: 2012 Outlook During 2012, the Company is investing to increase its mining and processing capacity to support strong production growth beginning late in the year. At Timmins West Mine, the work program involves significant ore delineation and infrastructure development, particularly during the first half of 2012. A 50% expansion of the Company's milling facility, to 3,000 tonnes per day, is progressing on schedule for completion in the fourth quarter. Based on the 2012 work program, production will be weighted to the second half of the year. During the first quarter, throughput levels and grades will be affected by the extent of development work being completed, with production during the quarter expected to total approximately 15,000 ounces of gold poured. For the full year 2012, the Company is targeting from its Timmins West and Bell Creek mines total production of between 85,000 and 100,000 ounces of gold poured. Cash operating costs for the year are estimated at US$825 to US$875 per ounce. Cash operating costs during the first quarter are budgeted at approximately US$1,450 per ounce, reflecting the focus on ore development and stope preparation during the quarter. Costs are expected to improve during the second quarter, but remain above the full-year target range, and then improve to below the target range during the second half of the year when the Company's focus transitions to stope production leading to higher throughput levels and grades. During 2012, the Company plans to complete the growth capital phase of the Timmins West Mine project, which is expected to involve development expenditures of $93 million and $67 million of expenditures to complete the 50% mill expansion and other milling costs. The Company also contemplates incurring additional expenditures for the continued development of Bell Creek Mine and for exploration drilling, with the amount and timing of these expenditures to be evaluated on an ongoing basis in relation to the Company's capital position. Based on cash and gold bullion inventory at the beginning of 2012 of approximately $66.2 million, the approximately $50 million received from Franco-Nevada in March 2012 and anticipated proceeds from planned gold production during the year, the Company is positioned to finance the completion of the growth capital phase of the Timmins West Mine, including the Bell Creek Mill expansion. The Company's 2012 business plan assumes an average gold price of US$1,650 per ounce and a C$/US$ exchange rate of 0.98. To support additional expenditures, the Company is currently assessing opportunities to strengthen its balance sheet through increased access to debt facilities or related structures, equity markets or any combination to provide additional capital and financial flexibility. Conference Call & Webcast Lake Shore Gold will host a conference call and webcast on Tuesday, March 27, 2012 at 10:00 am EST to discuss the Company's full year and fourth quarter 2011 financial and operating results. Those wishing to access the call can do so using the telephone numbers that follow. The call will also be webcast and available on the Company's website.
Participant call-in: 416-340-9432 or 888-340-9642 | |
Replay number: 905-694-9451 or 800-408-3053 | |
Re-dial ID: 2569205 | |
Available until: 11:59 pm, April 3, 2012 |
About Lake Shore Gold Lake Shore Gold is a gold mining company that is in production and pursuing rapid growth through the successful exploration, development and operation of three wholly owned, multi-million ounce gold complexes in the Timmins Gold Camp. The Company is in commercial production at both the Timmins West and Bell Creek mines, with material being delivered for processing to the Bell Creek Mill. A 50% mill expansion, to 3,000 tonnes per day, is advancing towards completion by late 2012. The Company continues to have an active drilling program aimed at supporting current operations and evaluating high-priority exploration targets around the Timmins Camp. The Company's common shares trade on the TSX and NYSE Amex under the symbol LSG. FORWARD-LOOKING STATEMENTS Certain statements in this press release relating to the Company's expected production levels, production growth, exploration activities, potential for increasing resources, project expenditures and business plans are "forward-looking statements" or "forward-looking information" within the meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under the United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." 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 be consistent with models and 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, delays in development or mining and 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 the Company's most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar at www.sedar.com, or the Company's most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission. (1) Denotes non-GAAP (Generally Accepted Accounted Principles) measures.
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.----------------------------------------
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