Lake Shore Gold Corp. ("Lake Shore Gold" or the "Company") today announced that the Company has achieved a processing capacity of 2,500 tonnes per day following the completion of the first stage of its 50% mill expansion. The mill's new capacity represents an increase of 25% from the previous capacity of 2,000 tonnes per day. The second stage of expansion, to a capacity of 3,000 tonnes per day, is on track for completion during the second quarter of 2013.
Tony Makuch, President and CEO of Lake Shore Gold, commented: "We are beginning to see the payback from a lot of hard work and investment over the last year. With increased mill throughput and improved grades, we are set to finish the year strong and to achieve full year production of over 85,000 ounces of gold. Equally important, with the progress being made at our mill and in completing our development and drilling programs at Timmins West Mine, we are looking to 2013 as a break-out year for the Company, with significantly higher production, lower operating costs, and a sharp reduction in capital expenditures. Our balance sheet is strong and we are financed to take Timmins West Mine to full production at which time we will be generating positive free cash flow."
The Company's mill expansion involves major upgrades to both the front end ("crushing/grinding") and back end ("solution") of the mill. In October 2012, the first components of the mill expansion were brought on line, including a new thickener, new thickener pumps and pumpbox, the new flocculants plant and water system upgrades. To complete the first stage of the expansion, and increase our throughput capacity to 2,500 tonnes per day, we have now brought on line two new carbon-in-leach tanks, the new leach tailings screening plant, the new gland water pumping system and pump and piping upgrades to the secondary grinding circuit. The second stage of the expansion, to reach 3,000 tonnes per day, involves the completion of a new front end to the circuit, specifically the ore receiving, crushing, ore storage and grinding facilities. Work on this part of the expansion is well advanced with completion expected in the second quarter of 2013.