Last fiscal year was a productive one for Lake Shore Gold, whose Timmins-area work towards developing its Timmins Mine and other area projects came in on schedule and under budget.
Project spending through 2008 totaled $56.3 million, more than $7 million below its budget of $63.6 million.
Meanwhile, exploration expenditures were above budget, reaching $15.7 million as compared to the budgeted $11.4 million. This heightened spending is a reflection of exploration successes seen throughout the year. Through this work, the known mineralization at the Bell Creek site was extended to 900 metres from surface and an additional 400 metres along strike.
The company's cash resources sat at $85.3 million as of Dec. 31, 2008, and on March 5, 2009, Lake Shore issued more than 30 million shares, which provided proceeds of $57.6 million.
To date, the shaft has been sunk 341 metres, while the ramp has been planned, permitted and advanced 345 metres.
By the end of 2009, the company expects the ramp to be driven 640 metres, with a shaft to be driven to the 710-metre level. An initial bulk sample and underground diamond drilling are also due to be completed by year's end.
Approximately 30,000 ounces of gold will be mined from development ore through 2009 as a result of the advanced exploration program at the Timmins Mine.
Project spending for 2009 is forecast at $89 million, a figure which includes exploration. This total has risen $7 million higher than the previously announced budget as a result of accelerated work at the Bell Creek Complex.
Recently, the company also made a significant addition to its board of directors through the appointment of Ignacio Bustamante, chief operating officer of Hochschild Mining.
Bustamante has worked for Hochschild and its affiliated companies since 1992, and previously served as the general manager of Hochschild's Peruvian operations.
