GOLDBUGS AMEX Goldbugs Index (GOLD)

[NYBob]

Lake Shore Gold Announces Results of Preliminary Economic
Assessment for Timmins West Mine, PEA Highlights Potential for
Positive Economics, Substantial Cash Flow and Attractive Returns
02/28/2012




http://www.lsgold.com/Investor-Centre/Press-Releases/Press-Release-Details/2012/Lake-Shore-Gold-Announces-Results-of-Preliminary-Economic-Assessment-for-Timmins-West-Mine-PEA-Highlights-Potential-for-Posit/default.aspx

TORONTO, ONTARIO--(Marketwire - Feb. 28, 2012) -

Lake Shore Gold Corp. -
(TSX:LSG)(NYSE Amex:LSG) ("Lake Shore Gold" or the "Company")

-- PEA shows potential for over $60 million of free cash flow(1) in Year 2,
and over $100 million of annual free cash flow starting in Year 3 (based
on current gold prices)

-- Potential 10 years of production based on current resources, with annual
production in Years 3 to 9 averaging 160,000 ounces recovered, peaking
at 175,000 ounces

-- Average annual cash operating costs of US$625 per ounce, US$590 per
ounce in Years 3 to 9 (based on a Canadian dollar at par with U.S.
dollar)

-- At current market prices(2), potential for total undiscounted cash flow
of $1.14 billion, pre-tax net present value ("NPV") of $880 million (5%
discount rate) and a payback period of 1.25 years

-- At analyst consensus pricing(3), potential undiscounted cash flow of
$730 million, a pre-tax NPV of $570 million (5% discount rate), with
payback period of 1.25 years

-- Significant opportunities exist to enhance project economics through
improved operating cost performance, capital optimization, resource
growth and increased throughput.

http://www.lsgold.com/Theme/LakeShore/files/doc_presentations/LSG_tdconference_2012_01_23.pdf

http://www.lsgold.com/Investor-Centre/Presentations/default.aspx

http://www.lsgold.com

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=71908281

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72169146


God Bless