Deal at Thunder Creek

Lake Shore Gold (LSG-V) has inked an option deal on Band-Ore Resources‘ (BAN-T) 54-claim Thunder Creek property, near Timmins, Ont.

Lake Shore can take a 60% interest in the property by paying $370,000 in cash, spending around $1.7 million on exploration over five years, and issuing 100,000 shares over four years. The agreement is subject to regulatory approval and Lake Shore’s due diligence.

A first wave of drilling on Thunder Creek will soon test for strike extensions of the Ultramafic and Footwall zones currently being drilled on the adjoining Timmins gold property.

Recent drilling on the Timmins property yielded up to 1.75 metres running 14.1 grams gold per tonne (T.N.M., Oct. 17-23/03). The results prompted operator Lake Shore to send two more drill rigs to the property to accelerate drilling. The work is aimed at expanding the gold resource in the Main zone, Hanging Wall veins 1, 2 and 3, and the Footwall and Ultramafic zones.

Lake Share can earn a half-interest in the Timmins property from Holmer Gold Mines by funding $2.5 million worth of exploration, paying $250,000 in cash, and issuing 150,000 shares over three years. Lake Shore must also confirm an indicated mineral resource of at least 500,000 oz. gold.

At last count, the property was home to an indicated resource of 422,000 tonnes grading an uncut 17.78 grams gold per tonne.

Lake Shore is 48.9%-owned by Aurora Platinum (ARP-T).