Your SlideShare is downloading. ×
0
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Marketingjuly2012july412
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Marketingjuly2012july412

511

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
511
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Lake Shore Gold Corp.Tony Makuch, President & CEOMarketing Presentation TSX & NYSE MKT : LSGJuly 4, 2012 www.lsgold.com
  • 2. Forward Looking StatementsInformation included in this presentation relating to the Companys expected production levels, production growth, costs, cash flows, economicreturns, 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 underthe United States Private Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does notintend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements represent managements bestjudgment based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disruptedby 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 actualmineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company makes no representation thatreasonable business people in possession of the same information would reach the same conclusions. Forward-looking statements involve known andunknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially differentfrom any future results, performance or achievements expressed or implied by the forward-looking statements. In particular, delays in development ormining and fluctuations in the price of gold or in currency markets could prevent the Company from achieving its targets. Readers should not place unduereliance on forward-looking statements. More information about risks and uncertainties affecting the Company and its business is available in theCompanys most recent Annual Information Form and other regulatory filings with the Canadian Securities Administrators, which are posted on sedar atwww.sedar.com, or the Company’s most recent Annual Report on Form 40-F and other regulatory filings with the Securities and Exchange Commission.QUALITY CONTROLLake 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 samplesconsisting of 1 blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and the certified standards arechecked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been completed using a standard fireassay 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 theTimmins mine and Thunder Creek underground project, the remaining pulp is taken and fire assayed with a gravimetric finish. Select zones with visible goldare 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. Theremaining 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 Lablocated in Timmins, Ontario, and the pulps shipped to ALS Chemex Assay Laboratory in Vancouver, B.C. ALS Chemex is an ISO 9001-2000 registeredlaboratory preparing for ISO 17025 certification.QUALIFIED PERSONThe Company’s Qualified Persons (“QPs”) (as defined in National Instrument 43-101, “Standards of Disclosure for Mineral Projects”) for diamond drillingprojects at the Timmins deposit surface; Thunder Creek, Gold River Trend and 144 properties; Bell Creek Mine; and Casa Berardi optioned property areJacques Samson, P.Geo., Stephen Conquer, P.Geo, and Keith Green, respectively. Dean Crick, P.Geo. is the QP for the Timmins deposit and ThunderCreek 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 respectiveproperties as provided in this presentation. Messrs., Samson, Conquer, Kusins, Crick and Green are employees of the Company. 2
  • 3. LSG – 4 Multi-Million Ounce Gold Deposits Pipestone Fault Bell Creek Complex Bell Creek Mill Destor-Porcupine Fault City of Timmins Fenn-Gib Timmins Timmins West Mine Timmins West Complex Main drivers of near-term growth Gold producer with 2 operating mines in Timmins Gold Camp  85,000 to 100,000 ozs in 2012(1)  Growing to >150,000 ozs/year Au at <US$600/oz by 2014(1)  Poised to outperform peers Large, growing resource base: 3.4M ozs M&I and 3.7M ozs Inferred  Capable of supporting over 500,000 ozs per year(1) (1) Examples of Forward Looking Statements. 3
  • 4. LSG – Growing Production, Lowering Costs(1) Estimated Production(1) Cash Costs(2) (000’s of ozs) (US$/oz)180 1,100160 LSG  1,000 ARZ SAS140 900 SGR RIC RIC 800 ARZ120 SGR SAS 700 LSG 100 600 80 500 60 400 2012 2013 2014 2012 2013 2014 (1) Based on NBF Financial estimates. LSG estimates based on (2) All cost numbers (including LSG’s) based on NBF Financial Timmins West Mine PEA (excludes Bell Creek) estimates. (NBF estimates more conservative than TWM PEA) (1) Examples of Forward Looking Statements. 4
  • 5. LSG – Share Structure Lake Shore Gold (TSX, NYSE MKT: LSG) Shares outstanding (basic) 410,000,000 Share price (June 29, 2012) $0.91 Market capitalization $373,000,000 52 week High/Low $3.49/$0.74 Three Month average volume (shares) 6,650,000 Market cap per ounce of resource(1) ($) San Gold 116 Aurizon Mines 112 Lake Shore Gold(2) 64 Richmont Mines 42 St Andrews Goldfields 34 (1) Source: NBF Financial estimates. (2) Assumes 5.8 million ounces based on NBF methodology of discounting certain categories of resources. 5
  • 6. LSG – Comparative Share Performance ARZ LSG SAS SGR RIC 6
  • 7. Five-Years of Growth and Progress… Timmins West Mine Production and Cash3.7 Costs Ounces (Additional Potential from Bell Creek) US$/Oz175,000 900 850150,000 800125,000 750 Target Range 700100,000 650 75,000 600 50,000 100,000 550 500 25,000 450 0 400 2012 2013 2014 2015 2016 Production Cash Costs (1) Examples of Forward Looking Statements. 7
  • 8. … Starting in Q2/12(1) Production reaches 24,298 ozs in Q2/12, near top of 20,000 to 25,000 oz target range, expected to grow to 25,000 to 30,000 ozs in Q3 & Q4/12 Cash costs to show improvement as 2012 progresses Ounces $US/oz 35,000 1600 30,000 24,298 ozs 1400 (Actual) 1200 25,000 US$1,048 1000 20,000 16,180 (Actuals) 800 15,000 600 10,000 400 5,000 200 0 0 Q1 Q2 Q3 Q4 Denotes target range (1) Examples of Forward Looking Statements. 8
  • 9. Review of Second Quarter 2012 24,426 ounces produced in Q2/12, at top of 20,000 to 25,000 ounce target range Gold poured of 24,298 ounces, gold sales of 24,915 ounces at US$1,605 per ounce Third consecutive quarter of meeting or exceeding production targets Significant improvement in mill throughput, grades and gold production from Q1/12 On track to produce 85,000 to 100,000 ozs in 2012(1) Recently announced savings of $15-$20 million in 2012 capex Continued exploration success  Extended high-grade core at Gold River  Expanded mineralization at Fenn-Gib (1) Examples of Forward Looking Statements. 9
  • 10. Positive Free Cash Flow Beginning in 2013(1) 3.7 Timmins West Mine  175 Within One Year of Positive Free Cash Flow(2) 150 125 100$ Millions  75 50 25 0 -25 2012 2013 2014 2015 2016 -50 -75 -100 Capital Expenditures Net Free Cash Flow 1. Examples of Forward Looking Statements. 2. Gold price starting at US$1,744/oz in 2012, declining to a long-term price of US$1,200/oz in 2018, average exchange rate of $US:1.00 = $CDN . 10
  • 11. Four Multi-Million Ounce Projects(1) Timmins West Mine – Growing to >150,000 ozs/ year at <US$600/oz by 2014(1) – PEA covers 10 years of mining, strong potential for growth – Resources: 1.1M ozs M&I, 0.8M ozs Inferred Bell Creek Complex – Current production: approx. 20,000 ozs/year – Pursuing development of North A Deep Zone – Resources: 0.8M ozs M&I, 1.1M ozs Inferred Gold River Trend – 4 kms from Timmins West Mine – Shallow resources with excellent potential for growth – Resources: 0.1M ozs Indicated, 1.0M ozs Inferred Fenn-Gib – Large open-pit project 60 kms from Timmins – Exploration success highlights potential to grow resources – Resources: 1.3M ozs Indicated, 0.8M ozs Inferred (1) Examples of Forward Looking Statements. (1) Examples of Forward Looking Statements 11
  • 12. LSG – Large, Growing Resource Base Probable Reserves Tonnes Au Grade (g/t) Contained Ounces Timmins West Mine 4,922,000 5.21 823,800 Measured & Indicated(1) Tonnes Au Grade (g/t) Contained Ounces Timmins West Mine 5,826,000 5.99 1,122,500 Gold River 690,000 5.29 117,400 Bell Creek Mine 4,249,000 4.73 646,400 Vogel 2,219,000 1.75(2) 125,000 Marlhill 395,000 4.52 57,400 Fenn Gib 40,800,000 0.99(2) 1,300,000 Total 3,368,700 Inferred Tonnes Au Grade (g/t) Contained Ounces Timmins West Mine 4,272,000 5.76 791,500 Gold River 5,273,000 6.06 1,027,800 Bell Creek Mine 6,088,506 4.87 953,800 Vogel 1,459,000 3.60(3) 168,800 Fenn-Gib 24,500,000 0.95(2) 750,000 Total 3,691,900 (1) Resources are inclusive of reserves (2) Open-pit resources (3) Combination of underground and open-pit resources 12
  • 13. Timmins West – Building to >150,000 Oz/Year(1) Reserves: 823,800 ozs (4.9M t @ 5.21 gpt) Resources: 1,122,500 ozs Indicated, 791,500 ozs Inferred Production: Growing to 130,000 ozs in 2013, >150,000 ozs by 2014 Cash costs: <US$600/oz at full production (2014) Key Facts:  Located 18 kms west of Timmins, at junction of HWY’s 101 and 144  Infrastructure includes 710 m, 5.5 m diameter shaft, hoist, shaft stations (200, 400, 525 and 650 L) surface ramp to 290 L  285 employees ( 85 surface, 200 U/G) (1) Examples of Forward Looking Statements. (1) Examples of Forward Looking Statements 13
  • 14. Section View Timmins Deposit Thunder Creek Deposit 2012 Work 2012 Work Program* Program*  2012 development plan to support next several years of mining 14
  • 15. TWM – Significant Potential to Upgrade Resources Timmins Deposit Thunder Creek Deposit Long Section Looking SE Long Section Looking SE 300 m Level 290 m Level 395 m Level 525 m Level 650 m Level 730 m Level Inferred Resource Inferred Resource Indicated Resource Indicated Resource 15
  • 16. Bell Creek Mine and Mill (1) Examples of Forward Looking Statements 16
  • 17. ShaftBell Creek Mine – 2nd Producing Mine Mined out areas Resources: 646,400 ozs (4.2M t @ 4.73 gpt) Indicated, 953,800 Recent ozs (6.1M t @ 4.87 gpt) mining Production: Current production approx. 20,000 ozs/year(1) North A Evaluation of high-potential “Deep” North A Deep Zone ongoingKey Facts: Located 20 kms east of Timmins Historic production (112,000 ozs) Infrastructure includes mill, tailings 300 m shaft (non-producing), hoist, decline to 565 L, vent raises 95 employees (25 surface, 70 U/G) (1) Examples of Forward Looking Statements. (1) Examples of Forward Looking Statements 17
  • 18. Bell Creek Mine – Working to Upgrade Resources Large scale trend Local (high grade) trend 535 mL Delineation drilling, 30,000 m 610 mL Drilling Campaign, 2013 Lake Shore Gold – 2012  Exploration drilling down plunge  Development to 535m Level  8 veins recognized (NA – NB style) 18
  • 19. Milling Facility – Expanding for Growth(1) 50% expansion to 3,000 tpd progressing – completion in 2013 Timmins West Mine to reach 3,000 tpd by Q4/13 Next expansion to increase capacity to 5,500 tpd  To support Bell Creek Mine, Gold River Trend (1) Examples of Forward Looking Statements. 19
  • 20. LSG – 160km2 In Century-Old Gold Camp >70 Million Ounces Produced in Timmins Camp>140 Million Ounces Produced Between Timmins & Val-d’Or Pipestone Fault Bell Creek Complex Hoyle Pond Destor Porcupine Fault Pamour Hollinger McIntyre Dome Fenn-GibTimmins West Complex 20
  • 21. Timmins Gold Camp – Deep Orebodies Significant Depth Potential at LSG Projects Kidd Creek McIntyre Hollinger Dome Hoyle Pond Lake Shore Gold Properties*Production Base 12M ozs 20M ozs 17M ozs 3M ozs Timmins Thunder Bell Creek Gold Fenn-Gib Metals @ 9.8 gpt @ 9.8 gpt @ 6.2 gpt @ 13.0gpt Deposit Creek Complex River 0Metres 400 ‐500‐1,000 800 900 1,200‐1,500 Open 1,700 Open‐2,000 Open‐2,500 Operating Mine‐3,000 Historic Mine 21
  • 22. Timmins – Long History of Expanding Resources 30 Timmins Reserves: Grow 10x During Production 25 20 Millions of Ounces 15 10 5 0 Abitibi-Quebec Hemlo Kirkland Lake Red Lake Timmins Region Start After 10 Years Life of Mine (1) Source: CIBC World Markets. 22
  • 23. Timmins West: High-Growth Mining Complex (1) Examples of Forward Looking Statements 23
  • 24. Conceptual Cross Section for Timmins Gold CampBristol  Fault 24
  • 25. Conceptual Cross Section for Timmins WestBristol  Fault 25
  • 26. Timmins West: High-Growth Mining Complex 6 kms Thunder Creek – 144 Trend 144 Thunder Creek Timmins Deposit 2,000 Lv UM and FW structures extended(1) Examples of Forward Looking Statements. to 2,400 m 26
  • 27. TWM – Potential at Depth & Along TC-144 Trend 144 Thunder Creek Deposit Timmins Deposit Main and FW Zones Rusk Horizon Ultramafic Fold Structure Bristol Creek Fault Porphyry Zone Thunder Creek Stock Along contact towards 144 Mafic-Sedimentary Contact (Multiple Folds provide exploration potential) (1) Examples of Forward Looking Statements 27
  • 28. Bell Creek – Multiple Targets in All Directions NI 43-101 Resources 57,400 ozs Indicated NI 43-101 Pit Resources 125,000 ozs Indicated 31,700 ozs Inferred NI 43-101 Resources NI 43-101 U/G Resources 137,100 ozs Inferred 646,400 ozs M&I 953,800 ozs Inferred 28
  • 29. Fenn-Gib – Potential Large Open-Pit Mine Large, open pit project located 60 kms east of Timmins Acquired from Barrick Gold Corp. in August 2011 Initial resource with significant potential for growth:  M&I - 1.3M ozs (40.8M tonnes @ 0.99 gpt)  Inferred - 0.75M ozs (24.5 tonnes @ 0.95 gpt) Potential for large-scale production based on a 15,000 to 25,000 tonne per day operation(1) (1) Examples of Forward Looking Statements. 29
  • 30. Fenn-Gib – Identifying New Targets Hislop Open Pit Ross Mine (Active Mine) Main Zone ~ 2 million ounce resource with excellent growth potential400 Lv Open Central  Porphyry  Structure1000 Lv (1) Examples of Forward Looking Statements. 30
  • 31. Steps to Realizing Value Timmins West Mine  Grow production to >150,000 ozs at <US$600/oz  Continue to grow reserve base Bell Creek  Upgrade resources and expand resource base  Complete PFS & FS Gold River Trend  Upgrade large inferred resource, expand resource base  Identify potential of high-grade core  Complete PEA & PFS Fenn-Gib  Grow resource base to more than 5 million ounces  Upgrade existing resources  Complete PEA, PFS (1) Examples of Forward Looking Statements. 31
  • 32. Funded to Reach Positive Free Cash Flow(1) Sources of Cash $ millions Cash and bullion inventory (January 1, 2012) 66.2 Franco-Nevada royalty & equity investment 50.0 Gold Loan (Closed June 14/12) 35.0 Standby Line (Closed June 14/12) 35.0 Operating Cash Flow(2) 75.5 Total sources of cash 261.7 Uses of Cash $ millions Development of Timmins West Mine 85.0 50% mill expansion and other improvements 56.0 Advancement of Bell Creek Mine 16.0 Exploration 10.0 Corporate G&A 10.5 Financing costs 5.0 Total uses of cash 182.5 (1) Examples of forward-looking information (2) Assumptions include 92,500 ozs Au sold (middle of range for gold poured), US$850/oz 32 cash cost (middle of range), US$1,650/oz gold price, C$/US$ exchange rate: $0.98
  • 33. LSG – A Growing Gold Producer(1) Gold producer with 4 multi-million ounce gold deposits Large, growing resource base (3.4M ozs M&I and 3.7M ozs Inferred) Rapidly growing production, improving cash costs  85,000 -100,000 ozs in 2012 growing to >150,000 ozs by 2014  Resource base supports potential for >500,000 ozs/year  Cash cost to improve below US$600/oz Positive free cash flow from TWM beginning in 2013 Overtaking peers in production & cost performance Multiple, highly-prospective exploration targets in one of the world’s great gold camps TSX, NYSE MKT: LSG (1) Examples of Forward Looking Statements. 33

×