TORONTO, ONTARIO--(Marketwired - Jun 24, 2013) - Lake Shore Gold Corp. ("Lake Shore Gold" or the "Company") (LSG.TO)(NYSE Amex:LSG)(NYSE MKT:LSG) announced today that it expects to report strong operating results when the Company issues its second quarter 2013 production release in early July.
Production for the second quarter is expected to total over 29,000 ounces at an average grade exceeding 4.0 grams per tonne. Quarter to date, mill throughput has averaged approximately 2,500 tonnes per day, gold produced is approximately 27,000 ounces and gold poured is over 25,000 ounces. Cash operating costs per ounce, to be released with the Company's full financial and operating results in early August, are expected to show significant improvement from the first quarter of 2013. The Company's mill expansion is nearing completion, with commissioning to commence in late July and the expanded processing capacity of 3,000 tonnes per day to be achieved by early September 2013.
Supported by improved operating performance, and progress with its key growth projects, the Company is committed to achieving its key guidance for the year, including producing 120,000 to 135,000 ounces of gold at cash operating costs between US$800 and US$875 per ounce, with total capital investment of approximately $90 million.
Following completion of the mill expansion, production levels will increase to over 140,000 ounces on an annual basis at cash operating costs below US$700 per ounce. The Company is on track to commence generating net free cash flow starting in September, even at current gold prices.