Lake Shore Gold extends high-grade core at Gold River Trend

Canadian Lake Shore Gold Corp. (TSX:LSG) said Thursday it is extending the area of high-grade core at its Gold River Trend property, after analyzing results of seven new holes (1,440 m) of drilling.

Resources at Gold River Trend are contained within two deposits, the East Deposit and West Deposit, both of which are located approximately 4.0 kilometres south of the Timmins West Mine shaft. The deposits include 2.5 kms of mineralized showings along the Gold River Trend, a major alteration and deformation zone lying north of the Destor Porcupine Fault Zone. In combination, the current resource for both deposits include 117,400 ounces Au (690,000 tonnes grading 5.29 gpt) in the Indicated category and 1,027,800 ounces Au (5,273,000 tonnes at an average grade of 6.06 gpt) in the Inferred category.

Here is the Press Release:

Lake Shore Gold Announces Significant Extension of High-Grade Core at Gold River Trend

  • High-grade core within current resource extended 125 metres (“m”) to depth and 120 m to west
  • Key intercepts include 18.48 grams per tonne (“gpt”) over 4.00 m, 4.59 gpt over 2.10 m and 2.55 gpt over 5.00 m
  • Additional mineralization intersected 420 m east of existing resource, including intercepts of 18.55 gpt over 1.00 m and 4.56 gpt over 1.50 m
  • New interpretations suggest potential for additional mineralized trends to north and south of Gold River Trend
  • Potential to expand current resource with further drilling considered excellent

TORONTO, ONTARIO — (MARKETWIRE) — 06/07/12 — Lake Shore Gold Corp.(TSX:LSG)(NYSE MKT:LSG)(NYSE Amex:LSG) ("Lake Shore Gold" or the "Company") today announced the results of seven new holes (1,440 m) of drilling at the Company's Gold River Trend property (the "Property"). Resources at Gold River Trend are contained within two deposits, the East Deposit and West Deposit, both of which are located approximately 4.0 kilometres south of the Timmins West Mine shaft. The deposits include 2.5 kms of mineralized showings along the Gold River Trend, a major alteration and deformation zone lying north of the Destor Porcupine Fault Zone. In combination, the current resource for both deposits include 117,400 ounces Au (690,000 tonnes grading 5.29 gpt) in the Indicated category and 1,027,800 ounces Au (5,273,000 tonnes at an average grade of 6.06 gpt) in the Inferred category.

Of the current resources, 310,900 ounces (986,000 tonnes grading 9.81 gpt) are located within a high-grade core in the East Deposit between 400 and 800 metres from surface, which remains open. The results being released today include extensions of the high-grade core by 125 m to depth and 120 m to the west, with mineralization also intersected 420 m to the east of the existing resource.

Tony Makuch , President and CEO of Lake Shore Gold, commented: "Today's drill results continue to confirm and extend the size of the overall gold system at the Gold River Trend and highlight the potential for the high-grade core within the East Deposit to be much larger than previously estimated. With an average grade of close to 10.00 gpt, the high-grade core is a very attractive target and extensions in any direction afford us the opportunity to significantly increase the resource base within this very large land position and to grow the value of the Gold River Trend project."

Included in the results are four holes (TH-12-132, TH-12-133, TH-12-134 and Th-12-134A) testing below and to the west of the current resource. All four holes intercepted multiple, parallel zones of mineralization. TH-12-134 and 134A extended the high grade core (referred to as the 4800_SD3 Zone) 125 m below the bottom of the resource with intersections of 4.59 gpt over 2.10 m and 2.55 gpt over 5.00 m, respectively. The best results were an intercept of 18.48 gpt over 4.00 m, including 86.25 gpt over 0.80 m in TH-12-134A, located 120 m west of the 4800_S1 Zone. TH-12-134A is also 475 m above and 100 m west of previously announced results in TH-11-94A, which also contained multiple zones and intersections such as 5.93 gpt over 3.00 m, 3.50 gpt over 3.50 m and 3.26 gpt over 2.45 m (see press releases dated August 30, 2011 and January 17, 2012). The new intercept in TH-12-134A is closely associated with a quartz feldspar porphyry dike containing quartz ankerite veining up to 5% disseminated pyrite and arsenopyrite and local visible gold. Based on the new information from these two holes, the potential for continued resource expansion in this area is considered excellent.

An additional three holes tested areas up to 740 m east of the current resource (TH-12-129, TH-12-130 and TH-12-131). These three holes also intersected multiple zones of strong alteration, deformation and mineralization with the best results including 18.55 gpt over 1.00 m and 4.56 gpt over 1.50 m in TH-12-131. Considering the extremely limited amount of previous drilling and the nature of results in these initial wide-spaced holes, the potential to for further resource additions is considered excellent.

In addition to the drill intersections being reported, observations from recent drilling indicate that the Gold River mineralization is coincident with a strong shear zone that may represent an early thrust fault that introduces a mafic volcanic unit into the Porcupine Sedimentary Basin, similar to the structural setting in the Hoyle Pond-Vogel-Bell Creek Belt further east in the Timmins Camp.

These observations are significant given that gold mineralization within Timmins West Complex is largely concentrated at or near the contact between mafic volcanics and sediments. The possibility for additional up-thrusted mafic units to the north and south such as the Red Porphyry trend and Thibault trend are excellent and partly delineated by strong magnetic trends in recent geophysics and limited drilling. The Red Porphyry trend is projected intermittently over a 5.3 km strike length and has been tested with only 13 historic drill holes. Best historic intersection is 5.21gpt over 1.5m (GW-04-03). The Thibault trend has been traced for a 5.9 km strike length through the historic shallow Thibault shaft and has been tested by about 21 historic holes (13 in the shaft area) with the best intersection of 7.08gpt over 1.0m (GS-05-06). Work to further examine this concept and to test these areas is underway.

Quality Control

The Qualified Person ("QP") for Lake Shore Gold's drill program at the Gold River Trend property is Jacques Samson , P.Geo. who as QP has prepared or supervised the preparation of the scientific or technical information for the property and verified the data disclosed in this press release. Mr. Samson is an employee of Lake Shore Gold.

Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis of the drill core. Assays have been completed using a standard fire assay with a 30-gram aliquot. For samples that return a value greater than ten grams per tonne gold, the sample is fire assayed with a gravimetric finish. Select zones with visible gold are tested by pulp metallic analysis. 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 Assay Laboratory in Vancouver, B.C. ALS Chemexis an ISO 9001-2000 registered laboratory preparing for ISO 17025 certification.