Second Gold Discovery at Site 144 Announced by Lake Shore Gold

Lake Shore Gold announced results for 25 new drill holes and two wedge holes at the 144 Exploration sited located immediately southwest of Timmins West Mine, Thunder Creek Deposit.

The main findings of the drilling program of 25 drilling holes and two wedge holes  indicated that sizeable gold deposits have been found at the location known as the 144 Gap SW. Some of the grades revealed by the drilling results range from 3.15 gpt/11.4m, to 27.28 gpt/2.5m

Site144 is located off of Highway 144 immediately southwest of the Timmins West Mine Thunder Creek Deposit and covers about 4.0 kilometres of the same volcanic/ultramafic, intrusive/sedimentary contact (the “TC-144 Trend”) that hosts both Thunder Creek and Timmins Deposit. Drilling at 144 to date has been largely focused on the 144 Gap area, where a new discovery was announced in October 2014. The discovery of the 144 Gap SW Zone, announced today, results from eight holes that were drilled to test targets to the southwest of the 144 Gap.  

“We now have our second discovery at 144 in less than a year and we found it with the first eight holes designed to test targets to the southwest of the 144 Gap Zone,” said Tony Makuch, President and CEO of Lake Shore Gold.

“The location of the 144 Gap SW Zone is very attractive as it will be easily accessible by further extending the exploration drift currently being developed to the 144 Gap Zone from Thunder Creek,” Makuch added.

“The success we are having drilling along the TC-144 Trend is very exciting as it continues to identify areas for potential future resource growth within Timmins West Complex,” stated Makuch. “It also continues to support our belief that the TC-144 Trend is host to multiple gold deposits that, together, can establish Timmins West as a major gold mining centre.”

Recent interpretations continue to suggest that the mineralization at 144 Gap is contained within a broad zone of hydrothermal alteration and deformation measuring up to 100 m wide and closely  associated with syenite intrusions, quartz veining, pyrite, scheelite and/or galena and multiple occurrences of visible gold. Mineralization appears to be contained in a series of thick higher grade chutes within an easterly plunging system. Some of the best mineralization identified to date is contained in a thick high-grade core which is estimated to measure 300 m in vertical height, 50 to 125 m in width and 75 to 125 m in strike length near the discovery hole Hwy-14-48. 

Hwy-15-109,110,115,117,118,119,121,122 and 124 were drilled as wide-spaced exploratory holes above the 144 Gap Zone towards surface and generally returned low values, but confirmed the current geologic model indicating that the top of mineralization is located approximately 550 m below surface.

In addition to recent drilling, the Company is in the final preparation stages for a large program of surface geophysics covering areas southwest of the 144 Gap and over the 144 North and South targets. The program will include line cutting, and an airborne drone magnetic survey, as well as a 3D Inverse polarization survey (3D IP) over a 3.5 km by 4 km area to assist in defining new drill targets. Work on the program is planned to commence by early in the third quarter.         

The Company plans to continue surface drilling with 3-4 drill rigs during the new geophysical program with a focus on exploration to the southwest of the 144 Gap Zone.  

Lake Shore Gold is a Canadian-based gold producer with operations based in the Timmins Gold Camp of Northern Ontario. The Company produces gold from two mines, Timmins West and Bell Creek, with material being delivered for processing to the Bell Creek Mill. In addition to current mining and milling operations, the Company also has a number of highly prospective projects and exploration targets, all located in and around the Timmins Camp. The Company’s common shares trade on the TSX and NYSE MKT under the symbol LSG.

For further information please visit www.lsgold.com

Or contact:

Tony Makuch, President and CEO, 416-703-6298

Mark Utting, Vice-President, Investor Relations, 416-703-6298