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Lake Shore reported record gold production

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Staff writer ▼ | July 8, 2013
Lake Shore Gold announced operating results for the second quarter and first six months of 2013. For Q2, the company reported record quarterly production of 30,800 ounces of gold.
Lake Shore Gold
Lake Shore GoldLake Shore Gold announced operating results for the second quarter and first six months of 2013. For Q2, the company reported record quarterly production of 30,800 ounces of gold.


This represents an increase of 26% from the second quarter of 2012 and 33% from the first quarter of 2013. Mill throughput during the second quarter of 2013 totaled 230,920 tonnes at an average grade of 4.3 gpt with average mill recoveries of 95.7%. Mill throughput averaged 2,540 tpd for the quarter and averaged over 2,800 tpd during the final three weeks of June.

Average grades improved throughout the second quarter and included 3.9 gpt in April, 4.5 gpt in May and 4.6 gpt in June. Total gold poured for the second quarter of 2013 was a record 31,800 ounces, while gold sales totaled 27,600 ounces at an average price of $1,409 per ounce.

For the first six months of 2013, 428,560 tonnes were processed at an average grade of 4.1 gpt for 54,000 ounces of recovered gold. Gold poured totaled 52,300 ounces with gold sales of 53,700 ounces at an average price of $1,516 per ounce.

Supported by strong second quarter results and continued progress with its growth projects, the company remains committed to achieving its key guidance for the year, including producing 120,000 to 135,000 ounces of gold at cash operating costs between $800 and $875 per ounce, with total capital investment of approximately $90 million.

Entering July, the company is rapidly nearing completion of its current mill expansion project, to a capacity of 3,000 tonnes per day. Following completion of the expansion, production levels will increase to over 140,000 ounces on an annual basis, cash operating costs will improve to around $700 per ounce, capital requirements will decline dramatically for the balance of the year and the company will begin generating net free cash flow at current gold prices.

"We achieved strong operating results in the second quarter, including record quarterly production, average mill throughput in excess of current design capacity and higher grades that increased as the quarter progressed, averaging 4.6 gpt in June. We also continued to advance our key projects during the second quarter and are nearing the end of our mill expansion, with commissioning set to commence later this month. As a company, we are now fast approaching a major turning point," said Tony Makuch, president and CEO of Lake Shore Gold.


 

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