Long Gold Hits Buoy Lake Shore Shares
Lake Shore Gold (TSX: LSG) hinted at a bigger gold resource in a potentially more extensive open pit at the Fenn-Gib project in Ontario and investors responded by lifting its share price at the outset of the trading day Tuesday.
As of press time, Lake Shore’s share price was up eight percent to C$1.04 on modest trading volume.
“Based on the drilling we have completed since acquiring Fenn-Gib last August, we have now expanded the known mineralization by 200 metres to the north, to the east and to depth, with the deposit remaining open,” Tony Makuch, Lake Shore president and CEO said in a prepared statement. “We have also identified a number of new exploration targets, all within 1.5 kilometers of the current resource.”
In long section showing the 1.5-kilometre-long profile of the Fenn-Gib main zone, Lake Shore drew a new pit outline that was between 100 to 300 meters or so deeper across a kilometre long portion of the deposit, than the previous one. Many of the gains at depth were on the east end of the deposit where the Fenn-Gib pit model is shallower than it is to the west. Lake Shore showed the Fenn Gib pit as reaching about 500 meters below surface.
The better intercepts at depth included as much as 191 meters @ 1.2 g/t au starting 491 meters downhole. In the more heavily drilled starter pit area and close to surface it also returned 324 meters @ 1.26 g/t Au.
If there are resource gains in store then Lake Shore will build them on the backs of the two million ounces in global resources it reported late last year. Fenn-Gib resources stand at 1.3 million ounces gold @ 0.99 g/t gold in the indicated category and 750,000 ounces @ 0.95 g/t Au in the inferred.
The Fenn-Gib project is about 60 kilometres east of Timmins in the productive Destor-Porcupine fault. Just west of Timmins, Lake Shore operates the underground Timmins West mine.