Page 15 Page 15 TIMMINS / MA THESON CAMP Page 14 Cont’d on pg. 16 By Gregory Reynolds Its capital spending in T immins on mine development and mill expan - sion projects in 2013 is forecast at approximately $80 milli on, says Lake Shore Gold Corp. An additional $10 million is budgeted for exploration, lar gely in-mine drilling. On Jan. 10, the company released operating results for the full year and fourth quarter 2012 and announced production and cost guidance for 2013. Highlights included: • Gold pr oduction in 2012 of 85,782 ounces (719,298 tonnes running 3.9 grams per tonne), with gold pour ed fr om 2012 pr oduction of 85,184 ounces, in line with company guidance • Gold pr oduction in fourth quarter 2012 totaling 23,738 ounces (181,575 tonnes running 4.2 grams per tonne), with gold pour ed of 24,041 ounces • Key 2012 mine development and expansion objectives achieved with mining and milling capacity incr eased 25% to 2,500 tonnes per day (on track to r each 3,000 tonnes per day during second quarter 2013) • T argets for 2013 include: str ong pr oduction gr owth to between 120,000 and 135,000 ounces of gold, cash costs between US$800 and US$875 per ounce (including r oyalties), • Cash and bullion inventory at Dec. 31, 2012 of appr oximately $61 million. T ony Makuch, president and CEO of Lake Shore Gold, commente d: “W e fn - ished 2012 strong with higher production and improved grades during the fourth quarter . For the full year , we achieved our produc - tion guidance, producing 85,782 ounces and pouring 85,184 ounces. Equally im - portant, we met our key mine develop - ment and mill expansion objectives, in - cluding increa sing both our mining and milling capacity by 25% to 2,500 tonnes per day . W e remain on track to increase production capacity to 3,000 tonnes per day during the second quarter of this year . The progress we achieved in 2012 has positioned us for signifcantly higher pro - duction, reduced spending and improved cash operating costs in 2013.” Production for the year is tar geted at be - tween 120,000 to 135,000 ounces of gold. T immins Mine is located at the west end of the T immins gold mining district, 18 kilometres west of the centre of the City of T immins and 42 kilometres by road from the Bell Creek Mill, where material from the T immins W est Mine is processed. As of Jan. 1, 2012, T immins W est is the name given to the combined operations of the T immins Deposit and the adjacent Thun - der Creek Deposit. Both deposits are in commercial production ef fective Jan. 1, 2012. Only the T imm ins Deposit was in com - mercial production during 201 1. On Jan. 21, 2013 Lake Shore announced the results from 35 holes and two exten - sion holes tota lling 27,41 1 metres drilled as part of the company’ s 2012 exploration program at its 144 Property , adjacent to the Thunder Creek Deposit at T immins W est Mine. The 35 holes, and one of the extension holes, were designed to test the south - west extension of the TC-144 alteration zone from Thunder Creek in three main areas including the 144 Gap, 144 North and 144 South areas. One extension hole was drilled to test the down plunge exten - sion of a lar ge syenite stock located im - mediately south of Thunder Creek with strong similarities to the syenite stock at TIMMINS / MA THESON CAMP Page 8 By Gregory Reynolds The Dome Gold Mine in the City of T immins is North America’ s longest continually operating gold mine. That is a fact that the mine’ s present owner , Goldcorp Inc., and the com - munity take great pride in. The mine began production in 1910 and Goldcorp expects to be a major employer in T immins for many more decades. Goldcorp, a leading senior gold pro - ducer operating on three continents, has plac ed its holdings in the Porcu - pine Gold Camp in a subsidiary . Porcupine Gold Mines (Porcupine) consists of two distinct mining opera - tions, Hoyle Pond Under ground and Dome Under ground. As well, there are several lar ge tonnage stockpiles, and a central milling facility . The former famous Hollinger Gold Mine, (1910-1968) will resume life sometime this year after all necessary approvals have been obtained. “These assets, combined with our world-class mill serve to ensure a sustainable future for our employees, their families and our community ,” the company says. In 2012, Goldcorp produced 2.39 million ounces of gold, with Porcu - pine contributing 262,800 ounces of that total. W ith over 800 employees, including contractors, Porcupine is a major employer in T immins. T immins Mayor T om Laughren stresses that the perception that mines are short term operations is wrong. “Every day that the Dome operates reminds us that no one knows how much gold exists in and around T im - mins. Mining is an industry that led to the crea tion of T immins and in 2012 we celebrated our 100th anniversary , disproving the theory that gold min - ing communities are inherently un - stable economically . T immins has a rich past and a bright future based on natural resources.” The mayor said the multi-mil lion dol - lar expansion of the Hoyle Pond op - eration has lengthened its life to 13 years and on-going exploration could extend that estimate. Goldcorp president and CEO Chuck Jeannes said on Jan. 7 that “at Por - cupine, gold production in 2013 is expected to be between 270,000 and 280,000 ounces. The Hoyle Pond Deep project continued to advance to access both depth extensions of cur - rent ore bodies and newly-discovered zones and to enhance fexibility and effciencies throughout the opera - tion.” He added that “progress is steadily advancing on a deep under ground shaft (winze) that will provide in - creased access to recently discovered zones such as the TVZ and V AZ in the under ground Hoyle Pond mine operation and signifcantly extend the mine’ s productive life. Successful exploration drilling at Hoyle Pond has demonstrated im - proving gold grades and the extension of several gold structures at depth. This success is spurring new invest - ments in mine development to posi - tion the revitalized Porcupine mine complex for long-term success.” In the past, the company has said Hoyle Pond contains some of the highest grade of gold ore ever found in the Porcupine Camp. Goldcorp is a leading senior gold pro - ducer with low cost operations and development projects located in polit - ically stable jurisdictions throughout North, Central and South America. It strives to deliver sustainable prosper - ity to its stake¬holders and remains frmly focused on the elements that continue to drive its success: industry leading growth, low cost production, maintaining an outstanding balance sheet, developing operations in low- risk jurisdictions and a commitment to sustainability . The company has 12 operatio ns, pro - ducing gold, silver , copper , lead and zinc, and six development projects. Three of the operations are in On - tario, Porcupine, Red Lake and Mus - selwhite. key foundation of local economy Goldcorp’ s T immins Operations TIMMINS / MA THESON CAMP Hoyle Pond rich mine Page 9 O ur p ro d u c t . O u r p e op l e . Yo u r a d v a n t a g e . www .r ock-tech.net Rock Solid Solutions T o p l e f t : T h e T i n a n i u m P T 6 1 6 P a s t e F i l l P i p e H a n d l i n g V e h i c l e i m p r o v e s e f ? c i e n c y a n d s a f e t y i n t h e i n s t a l l a t i o n a n d r e m o v a l o f u n d e r g r o u n d p a s t e ? l l p i p e s . F r o m a n i n n o v a t i v e c o m p a ny c o m e s i n s p i r e d t h i n k i n g a n d u n d e r g r o u n d e q u i p m e n t e n g i n e e r e d t o m e e t y o u r s p e c i ? c r e q u i r e m e n t s. R o c k - T e c h i n t r o d u c e s a t r i o o f u n i q u e p r o d u c t s f o r u n d e r g r o u n d a p p l i c a t i o n s d e si g n e d t o i m p r o v e b o t h p r o d u c t i v i t y a n d s a f e t y . T h e y a r e s u p p o r t e d b y t h e m o s t d e d i c a t e d t e a m o f p r o f e s si o na l s i n t h e b u si n e s s a n d a n a f t e r - s a l e s s u p p o r t n e t w o r k s e c o n d t o n o n e . A d v a nt a g e — y ou . 1 . 866. 822. 40 22 C A L L T O L L F R E E ! V I S I T U S A T : S A V E U P T O 4 0 % O N S E L E C T E D M O D E L S & S I Z E S W H I L E B U I L D I N G S U P P L I E S L A S T P ROJ E C T M A N A G E M E N T C U STO M D ESI G N ED A N D EN G I N EER ED TO Y O U R N EED S EX T 17 w w w . n o r s t e e l . c o m L I M IT E D T I M E O F F E R! Q U A LI TY | D U R A B I LI TY | SP EED O F D ELI V ER Y EV ER Y TH I N G Y O U R P R O JEC T D ESER V ES S U P P L Y IN G B U IL DIN GS A C ROS S C A N A D A A S S EEN O N TV C A LL N O W A N D R EC EI V E $1 , 000 I N O P TI O N S A B SO LU TEL Y F R E E ! W I TH Y O U R B U I LD I N G P U R C H A SE! P L US cal l now and we wi l l desi gn a cust om st eel bui l di ng f or you at no char ge. S om e condit ions apply . NS17 Ad_NS17 Ad 11-11-01 10:50 AM Page 1 TIMMINS / MA THESON CAMP