VG Gold ( ISIN: CA9182161021 )

Posted By JESSICA YOUNG, THE DAILY PRESS

Posted 3 days ago

All is underway for Lake Shore Gold Corp.

This week, the mining company began processing ore from their Timmins Mine's advanced exploration program.

Bell Creek Mill has a target of producing 30,000 ounces of gold this year and that number will increase to 100,000 ounces in 2010.

"Things are progressing well," LSG mine manager Brendan Zuidema said. "The shaft is at the 525-metre level and the ramp is at the 110-metre level.

"We've started to access some veins."

The Bell Creek Mill has a capacity of 800 tonnes per day. Things are scheduled to pick up as the year goes on and as deliveries from the Timmins Mine grow.

"We are very pleased to have commenced processing at the Bell Creek Mill," LSG president and CEO Anthony Makuch said.

"I would like to commend our staff at the mill for their excellent work in refurbishing the facility and returning it to operating status."

Advanced exploration at the Timmins Mine will be the initial focus so there will be limited ore deliveries at the start of the Bell Creek Mill, Makuch explained.

Exploration work at the Timmins Mine will be concentrated on the waste and infrastructure development required to establish underground drilling platforms and to access the ore.

The group is also looking to explore opportunities for contract milling of third-party feed as a means of using excess milling capacity, he said.