Lake Shore Gold to Launch 200K Ounces of Gold Output in 2011

New exploration company, Lake Shore Gold in Ontario, Canada will start gold production at annual 200,000 ounces by 2011. The firm launches Timmins and Bell Creek mines in 2010 while the firm is still in prefeasibility study phase. The firm expands the captive gold resource by acquiring Thunder Creek mine from West Timmins Mining.

Lake Shore Gold tries to develop gold resource at east end and west end of gold belt in northern Ontario. The firm plans to start the west end of Timmins mine operation at daily 1,500 tonnes of mining volume in 2010. The firm eyes expansion to 6,000 tonnes of mining volume. The firm estimates the resources contain 8.56 gram per tonne of gold.

The firm will purchase 50% interest in Thunder Creek mine, which is located next to Timmins mine and the firm has already 50% interest for. The firm plans to connect the mines to improve the efficiency. The firm estimates the resource contains 17.15 gram per tonne of gold at Thunder Creek.

The firm also has Bell Creek, which is east end of the gold belt. The firm already started the mining at daily 800 tonnes of mining volume expanding the operation to 1,500 tonnes in 2010 and to 3,000 tonnes in future. The resource contains 8.3 gram per tonne of gold.