Vancouver — A 20-year lease on the Schumacher Estate property expands
The agreement gives Lake Shore full control of the 64-hectare lease for $150,000, payable over two years, and exploration spending of $500,000, over three years. The company will also pay advance annual royalties of $25,000 in years 4-6 and $50,000 in years 7-9. There is a 2% net smelter return royalty on any production from the patented lot.
Historic exploration on the Schumacher lease led to a non-National Instrument 43-101-compliant measured and indicated resource of 156,000 tonnes grading 6 grams gold per tonne on its eastern portion, which is a continuation of the mineralization on the adjoining Vogel property.
Across on Lake Shore’s Vogel ground, a non-NI 43-101-compliant measured and indicated resource of 642,000 tonnes grading 12.7 grams gold was calculated in 1999. An additional 934,000 tonnes of inferred resource at the same grade was also estimated. Mineralization on both properties occurs in the main mine stratigraphy between the current and past-producing Hoyle Pond, Bell Creek and Owl Creek deposits. The deposits hosted very high-grade gold zones associated with flat veins and northeast structures, which Lake Shore is targeting at Vogel in an initial 4,000-metre drill program. The lease acquisition essentially doubles the company’s coverage of the mineralized horizon to about 1.6 km.
Lake Shore acquired Vogel earlier this year from
Vogel is situated 1 km west of Hoyle Pond, one of the highest-grade producers in the Timmins gold camp. The past-producing Bell Creek deposit is located about 1.4 km west.
With 79.6 million shares outstanding, Lake Shore posts a $128-million market capitalization at its recent $1.60-per-share trading price, a new high for the company.
Be the first to comment on "Lake Shore boosts Timmins footprint"