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Third quater conferance call
1. T h i r d Q u a r t e r 2 0 11
Conference Call and Webcast
N o v e m b e r 1 0 , 2 0 11
Making Progress, Realizing Our Potential
2. Forward Looking Statements
Certain statements in this presentation relating to the Company s expected production levels, production growth, exploration activities, potential for
Company's
increasing resources, project expenditures and business plans are "forward-looking statements" or "forward-looking information" within the
meaning of certain securities laws, including under the provisions of Canadian provincial securities laws and under the United States Private
Securities Litigation Reform Act of 1995 and are referred to herein as "forward-looking statements." The Company does not intend, and does not
assume any obligation, to update these forward-looking statements. These forward-looking statements represent management's best judgment
based on current facts and assumptions that management considers reasonable, including that operating and capital plans will not be disrupted by
issues such as mechanical failure, unavailability of parts, labour disturbances, interruption in transportation or utilities, or adverse weather
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conditions, that there are no material unanticipated variations in budgeted costs, that contractors will complete projects according to schedule, and
that actual mineralization on properties will be consistent with models and will not be less than identified mineral reserves. The Company makes no
representation that reasonable business people in possession of the same information would reach the same conclusions. Forward-looking
statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking
statements. In particular, delays in development or mining and fluctuations in the price of gold or in currency markets could prevent the Company
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from achieving its targets. Readers should not place undue reliance on forward-looking statements. More information about risks and uncertainties
affecting the Company and its business is available in the Company's most recent Annual Information Form and other regulatory filings with the
Canadian Securities Administrators, which are posted on sedar at www.sedar.com, or the Company’s most recent Annual Report on Form 40-F
and other regulatory filings with the Securities and Exchange Commission.
QUALITY CONTROL
Lake Shore Gold has a quality control program to ensure best practices in the sampling and analysis of drill core. A total of three Quality Control samples
consisting of 1 blank, 1 certified standard and 1 reject duplicate are inserted into groups of 20 drill core samples. The blanks and the certified standards are
checked to be within acceptable limits prior to being accepted into the GEMS SQL database. Routine assays have been completed using a standard fire
assay with a 30-gram aliquot. For samples that return a value greater than three grams per tonne gold on exploration projects and greater than 10 gpt at the
Timmins mine and Thunder Creek underground project, the remaining pulp is taken and fire assayed with a gravimetric finish. Select zones with visible gold
are typically tested by pulp metallic analysis on some projects. 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 Chemex is an ISO 9001-2000 registered
laboratory preparing for ISO 17025 certification.
QUALIFIED PERSON
The Company’s Qualified Persons (“QPs”) (as defined in National Instrument 43-101, “Standards of Disclosure for Mineral Projects”) for diamond drilling
projects at the Timmins deposit surface; Thunder Creek, Gold River Trend and 144 properties; Bell Creek Mine; and Casa Berardi optioned property are
Jacques Samson, P.Geo., Stephen Conquer, P.Geo, and Keith Green, respectively. Dean Crick, P.Geo. is the QP for the Timmins deposit and Thunder
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Creek underground drilling projects, and Bob Kusins, P.Geo., is the QP for resource estimation at all of the Company’s properties. As QPs, Messrs.
Samson, Conquer, Green, Crick and Kusins have prepared or supervised the preparation of the scientific or technical information for their respective
properties as provided in this presentation. Messrs., Samson, Conquer, Kusins, Crick and Green are employees of the Company.
2
3. Lake Shore Gold (LSG:TSX & NYSE Amex)
Good Progress in Third Quarter & Nine Months 2011
18,833 ounces recovered in Q3
18 833 ounces recovered in Q3
60,014 ounces poured YTD, poised to achieve 2011 target*
Strong cost performance in Q3, cash costs of $94/tonne,
US$884/ounce
Mill throughput levels meeting and exceeding target levels
1,890 tpd for Q3 – over 2,000 tpd in September
Continued exploration success
*Examples of Forward Looking Statements.
3
4. Lake Shore Gold (LSG:TSX & NYSE Amex)
Advancing five potential multi‐million ounce deposits
1. Timmins Mine – Q3/11 production increased 24% from Q2, grades in
Q / p Q ,g
UM1 reconciled well
Deep hole outlines incredible depth potential of Timmins deposit
2. Thunder Creek – First resource estimate on track for release in Q4*
2 Th d C k Fi t ti t t kf l i Q4*
3. Bell Creek Mine – Continued exploration success, working to
demonstrate resource potential
4. Thorne deposit (Gold River Trend) – Mineralization extended 450
metres to depth and 300 metres along strike, updated NI 43‐101
resource in Q1/12
resource in Q1/12*
5. Fenn‐Gib – Drilling confirms geological model and extends
mineralization
b l db f d*
First resource to be released before year end*
Potential long‐life open pit
*Examples of Forward Looking Statements.
4
5. Lake Shore Gold (LSG:TSX & NYSE Amex)
Outlook
2011 production to reach at least 85,000 ounces poured
2011 production to reach at least 85 000 ounces poured*
Head grades, cash operating costs and mill throughput in
Q /
Q4/11 all expected to improve*
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Significant growth in resources by year end*
o Initial resources from Thunder Creek and Fenn-Gib
o To at least double resource base by March 2012
Continue drilling for additional discoveries and strike
extensions
*Examples of Forward Looking Statements.
5
6. 2011 Financial Performance
Q3/11 9 Mo. 2011
Gold sold (oz) 16,570 69,512
Average price (US$/oz)
$/ 1,726 1,501
Proceeds from gold sales ($M) 28.1 102.4
Proceeds from commercial gold
sales ($M) 18.8 51.5
Cash operating costs (US$/oz)
per tonne 94 96
per ounce 884 845
Cash earnings from operations
$ millions 9.1 23.0
$ per share
$ h 0.02
0 02 0.06
0 06
Net loss
$ million 5.2 5.4
$ per share
$p 0.01 0.01
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7. Financial Position and Capital Structure
Shares Outstanding (Basic) 400,146,669
Shares Outstanding (Fully diluted) 418,145,521
Share Price (Nov. 4/11) $1.72
Market Capitalization $688,000,000
Cash & Equivalents (Sept. 30, 2011) $47,600,000
Revolving Credit Facility ‐ Drawn $20,000,000
Available
Available $30,000,000
$30 000 000
Gold Hedging None
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8. Planned Expenditures
Projected
9M/11
Full Year
Projects
P j t 71.1
71 1 85.0
85 0
Exploration 24.5 30.0
Mill Expansion
Mill Expansion 12.7 20.0 25.0
20.0‐25.0
Total 108.3 135.0‐140.0
Expenditures for 2011 expected to be consistent with
previous estimates as increased project spending at Bell
Creek and Thunder Creek offset lower expenditures for mill
expansion
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10. Growing Production at Timmins Mine
Recovered Ounces Q1/11 Q2/11 Q3/11 9M/11
Timmins Mine
Timmins Mine 10,951 9,627 11,909 32,486
Thunder Creek 2,731 2,323 3,433 8,497
p
Total Timmins West Complex 13,682
, 11,950
, 15,350
, 40,983
,
Bell Creek Mine 8,635 5,666 3,491 17,792
Total Production 22,328 17,615 18,833 58,775
Cash Costs ($/t) (Timmins Mine) 92 122 94 96
Cash Costs (US$/oz) (Timmins Mine) 586 1,187 884 845
1 – Production growth reflects 24% increase in production from Timmins Mine
1 ‐ Higher costs reflect lower average grade and significant development and
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silling work in support of production in H2/11 – Costs to improve in H2/11
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11. Timmins West – Significant Progress
Timmins Mine
Q3/11 grades in UM1 reconciled very well to block model
Excellent progress with development
Completed significant drilling and development ahead of Q4 production
Sill development to 545 Level 130,000 tonnes to be mined early in ’12
Ramped to from 650 L up to 480 L and down to 710 L
Ramp to reach 730 L by year end to support second heading into UM1 early
next year
Advanced major infrastructure including fill raise shop fuelling system
raise, shop, system,
electrical upgrades, etc.
Thunder Creek
Established primary ventilation system at 730 Level
Significant lateral development completed off both 300 and 730 Levels
Commenced and progressing with large bulk sample (730 Level)
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15. Bell Creek Mine
Driving ramp to 500 Level Surface
by year end* ramp Mined out
areas
Currently mining in North
A Zone – 370 to 415 Level
Grades improving from
Q3/11 level Shaft
Diamond drill program
300 Level
ongoing for North A Deep
Zone (500 to 800m levels)
H2/11 stoping area 330 Level
North A
Zone
420 Level
Planned development
North A “Deep”
(Upper portion of new gold system)
15
*Examples of Forward Looking Statements. 15
15
16. Bell Creek Mill – Expanding to Meet Growth
Two‐phase mill expansion*
Phase 1 from 2,000 tpd to 3,000 tpd by late 2012
Estimated cost $80 million
Estimated cost – $80 million
$20 ‐ $25 million estimated for 2011 ($12.7M as of
Sept. 30)
Phase 2 to 5,500 tpd
Phase 2 to 5 500 tpd *
Phase 1 incorporates material handling, crushing,
grinding and infrastructure (to support Phase 2
capacity)
Phase 2 work mainly involves back end of circuit
Estimated cost – $40 to $50 million
Timing dictated by mine advancement
*Examples of Forward Looking Statements.
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17. New SAG Mill Arriving in Timmins (Nov. 1, 2011)
Expanding to 5,500 tpd (from 2,000 tpd
currently)*
Two phase expansion
Two‐phase expansion *
Phase 1 to 3,000 tpd by end of 2012
Mainly involves crushing and grinding
Estimated cost $80 million
Estimated cost – $80 million
Phase 2 to 5,500 tpd *
Phase 1 incorporates material handling,
crushing, grinding and infrastructure
crushing grinding and infrastructure
(to support Phase 2 capacity)
Phase 2 work mainly involves back end
of circuit
Estimated cost – $40 to $50 million
Timing dictated by mine advancement
C ti t k itti d l i
Continue to work on permitting and planning
for new mill on west side of Timmins
17
18. Exploration Review
2011 drill program to Sept. 30/11
• 133,000 metres
• $24.5 million
$
Key focus of drilling initial resource at
Thunder Creek (Q4/11) and updates to
existing NI 43‐101 resources
27 drills currently active
6 Timmins Mine underground
1 Thunder Creek surface
6 Thunder Creek underground
3 Thorne property
2 144 property
5 Bell Creek surface
ll k f
3 Bell Creek underground
1 Deep hole
18
19. Deep Hole – Major Extension of Timmins Mine
Hole intersects Ultramafic and Footwall Zone style mineralization at 2,380
metres
Potential for 1.9 kilometre extension down plunge from bottom of current
reserve, quadrupling of Ultramafic Zone plunge length
Potential to add significant new resources considered extremely high
Hole intersected north limb of Timmins Mine Fold Nose
Planning wedge cuts into nose of fold structure
Will eventually infill drill from new intersections up to bottom of current
reserve
Same potential exists to extend Thunder Creek mineralization with more drilling
Drilling of deep hole continuing on LSG/RTM/AEG JV property
Second zone intersected (37 metres wide) between 3,024 and 3,061m down
( ) , ,
hole. Core just received, currently being logged
19
23. Fenn‐Gib
Acquired from Barrick in August 2011 for 14.9 million shares
Acquired from Barrick in August 2011 for 14 9 million shares
Provides high‐quality project with large‐scale, open pit potential
Initial NI 43‐101 resource targeted for release before end of 2011*
Drill results released on October 18th included 1.31 gpt over 414.00 metres, strong
gp , g
confirmation of geologic mode and potential for depth extensions, plus expansion of
mineralization 200m north
*Examples of Forward Looking Statements.
23
25. Lake Shore Gold (LSG:TSX & NYSE Amex)
Outlook
2011 production to reach at least 85,000 ounces poured
2011 production to reach at least 85 000 ounces poured*
Head grades, cash operating costs and mill throughput in
Q /
Q4/11 all expected to improve*
p p
Significant growth in resources by year end
o Initial resources from Thunder Creek and Fenn-Gib
o To at least double resource base by March 2012
Continue drilling for additional discoveries and strike
extensions
*Examples of Forward Looking Statements.
25