Lsg agm may_2011

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Lsg agm may_2011

  1. 1. Annual General and Special Meeting May 4, 2011 4 Toronto, Ontario 4:30pm
  2. 2. BUILDING A NEW MID-TIER GOLD MID TIER A NEW CENTURY OF MINING PRODUCER AND IN A CENTURY-OLD GOLD CAMPA NEW CANADIAN MINING SUCCESS STORY
  3. 3. Forward Looking Statements Certain t t C t i statements i thi presentation relating t L k Sh t in this t ti l ti to Lake Shore G ld’ exploration activities, project expenditures and b i Gold’s l ti ti iti j t dit d business plans are "f l "forward- d looking statements" within the meaning of securities legislation. 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 the Company and contractors will complete projects according to schedule, and that actual mineralization on properties 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, fluctuations in the price of gold or in currency markets could prevent the companies from achieving their 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 Lake Shore Gold’s most recent annual information form and other regulatory filings which are posted on sedar at www.sedar.com. There is no guarantee that drill results reported in this presentation will lead to the identification of a deposit that can be mined economically, and further work is required to identify a reserve or resource. QUALITY CONTROL Lake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. A total of three Quality Control samples consisting of 1 blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and the p g , j p g p p certified standards are checked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been completed using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold on exploration projects and greater than 10 gpt at the Timmins mine and Thunder Creek underground project, the remaining pulp is taken and fire assayed with a gravimetric finish. Select zones with visible gold are typically tested by pulp metallic analysis on some projects. NQ size drill core is saw cut and half the drill core is sampled in standard intervals. The remaining half of the core is stored in a secure location. The drill core is transported in security-sealed bags for preparation at ALS Chemex Prep Lab located in Timmins, Ontario, and the pulps shipped to ALS Chemex A Ch Assay L b t Laboratory i V in Vancouver, B C ALS Ch B.C. Chemex i an ISO 9001 2000 registered l b t is 9001-2000 i t d laboratory preparing f ISO 17025 certification. i for tifi ti QUALIFIED PERSON The Company’s Qualified Persons (“QPs”) (as defined in National Instrument 43-101, “Standards of Disclosure for Mineral Projects”) for diamond drilling projects at the Timmins deposit surface; Thunder Creek, Gold River Trend and 144 properties; Bell Creek Mine; and Casa Berardi optioned property are Jacques Samson, P.Geo., Stephen Conquer, P.Geo, and Keith Green, respectively. Dean Crick, P.Geo. is the QP for the Timmins deposit and Thunder Creek underground drilling projects, and Bob Kusins, P.Geo., is the QP for resource estimation at all of the Company’s properties. As QPs, Messrs. Samson, Conquer, Green, Crick and Kusins have prepared or supervised the preparation of the scientific or technical information for their respective properties as provided in this presentation. Messrs., Samson, Conquer, Kusins, Crick and Green are employees of the Company. * Example of Forward Looking Statement. 3
  4. 4. Strategic Land Positions in Timmins Quebec Processing Mill  ( (42kms from  s o Ontario Timmins Mine)  Timmins Bell Creek Mine Hollinger McIntyre Toronto Timmins Mine – First Discovery  70 Million Ounces Mined Timmins  Dome Mine  Thunder Deposit Creek  144 Project – DepositGold Mineralized  Porphyry at  Metasedimentary Surface Mafic Volcanics Gold River  G ld Ri Trend – 2km of  Ultramafic Volcanics Gold Showings 4
  5. 5. Lake Shore Gold – Strategy  Build shareholder value through: Operating, Operating development and exploration performance Growth in resources and reserves Growth in production and cash flow Ongoing extensions, new discoveries and acquisitions Plus: Strong balance sheet and capital management 5
  6. 6. LSG – A Story of Rapid Growth and Discovery… Rapid growth in resources and production, competitive operating costs andexcellent exploration potential Growing Resource Base Rapid Production Growth  Exploration (millions of ounces) (ounces) Success Resources Extensions New discoveries 1.8 0.6 0.9 1.2 12 2009 2010 2011* 2012* 2009 2010 2011* 2012* 2013* Measured & Indicated Company guidance  Company guidance Inferred Anticipated future growth *Examples of Forward Looking Statements. 6
  7. 7. …. And of Performance – In 2010, LSG… Doubled resources to 3.0 million ouncesProduced 43,500 ounces Au in 2010, up from 7,700ounces in 2009Reached commercial production at Timmins Mine(declared effective Jan 1, 2011)Drifted into mineralization at Thunder Creek on two levelsCommenced stoping below 300m Level at Bell CreekExcellent drill results at Thunder Creek, Bell Creek, GoldRiver Trend, Timmins Mine 7
  8. 8. Lake Shore Gold – Strong Financial Position $ millions (unless otherwise stated) Cash at December 31st $108*  Capital expenditures  (2010) $103.0 (Target: $115.0) Exploration spending (2010) $26.6 (Target: $28) Long‐term debt  Nil Basic shares outstanding (millions) Basic shares outstanding (millions) 382 FD ITM shares outstanding (millions) 404 *Includes $16 million of gold bullion inventory 8
  9. 9. Lake Shore Gold – Responsible Capital Management  Company built on equity, no debt prior to production $400M raised by issuing 145M shares since March 2008 Average 17% premium 104M shares issued for acquisition of West Timmins Mining Extended exploration base Major transformation of shareholder base beginning in Nov./10 N /10 – LSG now widely h ld id l held *Includes $16 million of gold bullion inventory 9
  10. 10. Lake Shore Gold – First Quarter 2011  148,000 tonnes milled at 4.89 gpt for 22,300 ounces Total gold poured of 25,900 ounces Gold sales of 34,000 ounces Mill recoveries continue to be excellent at approx. 96% pp Grade reflects mine sequencing, mining in Ultramafic Zone to resume Throughput below target at 1,650 tpd – crushing circuit issues being addressed Cash costs in line with full-year target of US$575/ounce y g $ First quarter 2011 financial results to be released May 25, 2011 Continue to target 125 000 ounces in 2011* 125,000 2011 *Examples of Forward Looking Statements. 10
  11. 11. 2011 – Year‐to‐Date Progress  Continued to demonstrate extensive potential of Thunder Creek Drill results near 730 Level included 11.53 gpt over 147.30 Wide, high-grade intercepts in virtually every direction Confirmed and expanded high-grade mineralization in Ultramafic Zone of Timmins Mine Discovered new gold zone at 144 Confirmed near-surface resource potential at Gold River Trend and p extended mineralization to 750 metres Established initial resources at Marlhill & Vogel, total resources at Bell Creek Complex Completed corporate credit facility for US$50 million 11
  12. 12. Lake Shore Gold – Strategy  Build shareholder value through: Operating, development and exploration performance p g, p p p Growth in resources and reserves Growth in production and cash flow Ongoing extensions, new discoveries and acquisitions g g , q Plus: Strong balance sheet and capital management 12
  13. 13. LSG – Rapid Growth in Resources Resources doubled in Dec. 2010, targeted to double again by early 2012* g Growing Resource Base (millions of ounces) Updates to Timmins Mine, Bell Creek, Gold River Trend Initial Thunder Creek Resource Initial Bell Creek Resource 3.0 Growth Gro th to Timmins Mine continue Gold River Trend 1.8 1.5 06 0.6 0.9 1.2 2009 2010 2011* 2012* Measured & Indicated Anticipated future growth Inferred *Examples of Forward Looking Statements. 13
  14. 14. Bell Creek Dec. 2010251,200 ozs M&A1,192,900 ozs InferredBetween 2,000 and3,000 ozs per verticalmetre below 950L 14
  15. 15. Bell Creek Complex – Opportunities for Growth  NI 43-101 Resources 43 101 57,400 ozs Indicated NI 43-101 Pit Resources 125,000 ozs Indicated 31,700 31 700 ozs Inferred NI 43-101 Resources PM-25-5 6.19/6.00 NI 43-101 U/G Resources 251,200 ozs M&I 137,100 ozs Inferred 1,192,900 ozs Inferred V-09-1A 8.97/3.00 4.00/5.20 6437 BC-10-94C BC 10 94C 4.95/4.00 5.20/50.60 4.87/22.60 Incl. 12.59/10.90 Incl. 8.37/11.00 15
  16. 16. Timmins Mine & Thunder Creek Timmins Mine 3.4M tonnes @ 7.52 gpt for 812,000 812 000 ozs of reserve (to date) 400 metre extension Thunder Creek Recent favourable Initial NI 43-101 drill resource expected H2/11 results Target: 1 0M – 1 5M ozs* T t 1.0M 1.5M * Open 16
  17. 17. Gold River Trend  Fold Nose Target250 m wide x 600 m long targetShallow Bulk Mining Potential North Porphyry‐ 4800 High grade/shallow g g / 17
  18. 18. Lake Shore Gold – Strategy  Build shareholder value through: Operating, development and exploration performance p g, p p p Growth in resources and reserves Growth in production and cash flow Ongoing extensions, new discoveries and acquisitions g g , q Plus: Strong balance sheet and capital management 18
  19. 19. LSG – Achieving Rapid Growth in Production  Achieving rapid production growth, momentum to continue Targeted growth to come from existing assets in production or under development Rapid Production Growth  Three Mines (ounces) Commercial Production Bell Creek Timmins Mine Commercial Production Thunder Creek 125,000 43,500 43 500 Timmins Mine 7,700 2009 2010 2011 2012* 2013* Actuals Company Anticipated future growth guidance Not all production based on existing resources *Examples of Forward Looking Statements. 19
  20. 20. Timmins Mine  Shaft RockfillCommercial production declared Raiseeffective January 1, 2011Grades reconciliation excellent Drift to TC Veins 200LCash costs expected to averageapprox. US$575/oz in 2011 MainMining to focus on lower-grade Zoneupper mine in Q1/11, stoping in 400LUltramafic Zone to resume late in FootwallQ2/11 Main ZoneDevelopment below 650 Level to 525Lcommence in Q3/11Mining method: mainly longhole Ultramafic 650Lstoping Drift to TC Fill cycle in Q1/11 Q1 Q2 Q3 Q4 20
  21. 21. Thunder Creek TC Vent Raise Thunder Creek Raise TC VentUpper MiU Mine Ramp development to be completed to 400 Level by year end Level development every 20 metres p y Exploration Drift p From Timmins Mine Continue diamond drilling to delineate ore body Mix of cut & fill and longhole stoping TC Vent Raise V tR iLower Mine Established exploration drifts Silling on 730 Level g Stoping horizons on 730 and 710 levels to be established Continue diamond drilling to delineate body and develop NI 43-101 resource 43 101 Exploration Drift From Timmins Mine Q1 Q2 Q3 Q4 21
  22. 22. Bell Creek Mine*Study progressing for 1,500m shaft Bell Creek Mine B ll C k MiPre-feasibility study to be completdfor a 2,500 tpd operation at BellCreek MineComplex now expected to produce100,000 150,000100 000 to 150 000 ounces perannum Conceptual shaft to 1,500m Existing resource Mineralized system *Examples of Forward Looking Statements. 22
  23. 23. LSG – Improving Cash Cost Performance   Cash costs at Timmins Mine to average US$575/ounce in first year of commercial production* Cash costs to improve to approx. US$400/ounce from all sources over next 2 to 3 years* through economies of scale mining & processing optimization and years scale, long-term exchange rates Target Cash Operating Costs* (US dollars per ounce) 575 400 2011 2013/14 Company guidance Anticipated future performance *Examples of Forward Looking Statements. 23
  24. 24. Lake Shore Gold – Strategy  Build shareholder value through: Operating, development and exploration performance p g, p p p Growth in resources and reserves Growth in production and cash flow Ongoing extensions, new discoveries and acquisitions g g , q Plus: Strong balance sheet and capital management 24
  25. 25. Timmins West Complex  Timmins Mine Thunder Creek 144 Zone 6km New Discovery Area Gold River East 144 South Gold River 144 West 6km South S th 25
  26. 26. Timmins Mine & Thunder CreekPotential for Major Resource Expansion  Timmins Mine Thunder Creek LSG drilling to test for depth extensions LSG drilling deep hole on behalf of JV Approx. 2,400 m Deep Target Testing for Potential Depth  Extension of the Timmins Mine  E i f h Ti i Mi and Thunder Creek Deposits 26
  27. 27. 144 – New Gold Zone Discovered  Timmins Mine Thunder Creek 144 Zone Gold River 144 EastSouth Gold River West 27
  28. 28. Bell Creek Complex –Potential for Two Mineralized Trends Marlhill Mine NI 43-101 Resources 57,400 ozs Inferred Future NI 43-101 Resources target Future 251,200 ozs M&I 1,192,900 ozs Inferred target Shaft Bell Creek Mine and Mill Vogel NI 43-101 Resources Pit: 125,000 ozs Indicted 31,700 ozs Inferred Future U/G U/G: target 137,100 ozs Inferred Wetmore 28
  29. 29. 2011 – A Year of Key Catalysts* Mill production to nearly triple to 125,000 ozs Cash costs at Timmins Mine of approx. US$575/oz. Release initial resource at Thunder Creek H2/11 H2/11, advance drilling to update resources at Bell Creek, Gold River Trend and Timmins Mine (by early 2012) Continued exploration success Depth extensions at Thunder Creek, Timmins Mine Discovery hole(s) at 144 Pit and depth potential at Gold River Trend Deep drilling at Bell Creek Mine Exploration budget of $31.0 million Moving forward with staged expansion of milling capacity Remain fully funded through 2011 *Examples of Forward Looking Statements. 29
  30. 30. Why Invest in Lake Shore Gold?  A rapidly growing gold mining company Two large land positions, including western extension of Timmins Gold Camp First mine in commercial production, two others in development Actively drilling high-potential exploration targets high potential Extensive growth in Rapid growth in resources and reserves production & cash flow Resources doubled in Dec. ’10* Output to nearly triple in ’11* To double again by early ’12* Growth to continue in ‘12 & ’13* Strong cash cost g Excellent exploration p performance potential US$575/oz. at Timmins Mine in ’11* Drilling at depth for extensions Targeting US$400/oz. in 2 to 3 years* Targeting new discoveries Strong financial position – Well funded with no debt *Examples of Forward Looking Statements. 30
  31. 31. GOLD A NEW CENTURY OF MININGIN A CENTURY-OLD GOLD CAMP

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