LakeShore Gold's neighbours
Lake Shore Gold came out with an operational update on January1.It stated that production for the year would come up to 135,000 ounces which is near the top end of guidance.Their guidance for 2014 is for 160,000 to 180,000 ounces of gold.They should hit it as their processing plant has been recently upgraded.Lake Shore has lots of high quality ore around their mill.Strangely they put on their website a news release that shows assay results for a neighbour called Metals Creek Resources(MEK).They own stakes in a property called the Thomas Ogden Zone.It is not clear from the release whether Lake Shore owns a piece of MEK or not.
Drill results
MEK says that the Thomas Ogden Zone has a strike length of 8 km.with little known about the eastern end of the zone.Drill intersects show two results of 1.89 and 1.90 grams per tonne.This establishes the continuity of the zone.It also expands the resource.The Ogden property is owned 50% by Goldcorp and 50%by MEK.This property is 6 km. south of Timmins.It sounds at first like they are next door neighbours but in fact Lake Shore has two properties between their Timmins West mine and the MEK property.The first is Thunder Creek which has two deposits of 3 km. strike length and a resource of more than a million ounces with an average grade of 5.89 grams per tonne.Also it has a a property called the Gold River Trend that is about 4 km. from Timmins.Only a small part of the Gold River Trend has been explored.It seems to have a good grade of gold also.
The Ogden Property
Why would Lake Shore have any interest in a low grade property when it is sitting on two properties with higher grade?It might pick up some interest from the other venture partner Goldcorp who has lots of venture capital.On the other hand Lake Shore now has a positive cash flow and may have bought some MEK shares on the market.They sell for $.03 to $.035 per share.In fact, the total market capitalization is only $3 million.The book value of their assets is $10 million and they have $7 million worth of equipment.So this could be a cheap way of picking up some mining equipment and getting the Ogden Zone for free.It is not rocket science.send comments for advice on mining stocks to BLOGDALEUPSOME
Drill results
MEK says that the Thomas Ogden Zone has a strike length of 8 km.with little known about the eastern end of the zone.Drill intersects show two results of 1.89 and 1.90 grams per tonne.This establishes the continuity of the zone.It also expands the resource.The Ogden property is owned 50% by Goldcorp and 50%by MEK.This property is 6 km. south of Timmins.It sounds at first like they are next door neighbours but in fact Lake Shore has two properties between their Timmins West mine and the MEK property.The first is Thunder Creek which has two deposits of 3 km. strike length and a resource of more than a million ounces with an average grade of 5.89 grams per tonne.Also it has a a property called the Gold River Trend that is about 4 km. from Timmins.Only a small part of the Gold River Trend has been explored.It seems to have a good grade of gold also.
The Ogden Property
Why would Lake Shore have any interest in a low grade property when it is sitting on two properties with higher grade?It might pick up some interest from the other venture partner Goldcorp who has lots of venture capital.On the other hand Lake Shore now has a positive cash flow and may have bought some MEK shares on the market.They sell for $.03 to $.035 per share.In fact, the total market capitalization is only $3 million.The book value of their assets is $10 million and they have $7 million worth of equipment.So this could be a cheap way of picking up some mining equipment and getting the Ogden Zone for free.It is not rocket science.send comments for advice on mining stocks to BLOGDALEUPSOME
Comments
Post a Comment