New mid tiers on the block: Lake Shore Gold, Apollo Gold prepare for production.

• Author: Stewart, Nick
• Position: TIMMINS

More eyes than ever are turning to Lake Shore Gold Corp. and Apollo Gold Corp. as they prepare to become the region's newest producers.

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This proved literally true as Lake Shore president Anthony Makuch addressed a crowd of more than 300 at the Big Event Mining Show's gala dinner, held at the MacIntyre Arena on May 27.

"We're building a mid-tier gold company and we're proud of a lot of the work we've done," said Makuch, himself the son of a gold miner.

"We've got a big year ahead of us and we've seen a lot of progress. The next years are looking even more exciting, so stay tuned."

What started with a team of eight a few scant years ago has since exploded into a staff of more than 250 people, a number which is expected to rise even further as Lake Shore pursues plans to move beyond its flagship project, the Timmins Mine.

Formerly known as the Timmins West project, the Timmins Mine is located just 18 kilometres west of the city. Local contractor Dumas Mining has been sinking the shaft since last August, having reached the 650 Level as of mid-May. From there, ore can be accessed for bulk sampling, which will begin by the third quarter of 2009.

With an 830,000-ounce probable reserve, the Timmins Mine will have an 11-year life, producing 30,000-ounces of gold this year alone through the processing of development ore at the Bell Creek Mill 40 kilometres away.

The Bell Creek project represents a shining star of its own, with advanced exploration continuing at the site in the second half of 2009, including dewatering and rehabilitation of the former mine workings.

A ramp will be driven through to its nearby Schumacher and Vogel properties together forming the Bell Creek Complex to allow for development work and bulk sampling in 2010, with commercial production anticipated for 2011.

This growth will place additional demands on the mill, which was refurbished December 2008 to a capacity of 800-tonnes-per day. Plans are already in place to expand it further to 1,500-tonnes-per day by the end of 2009, and eventually to 2,000 or 3,000-tonnesper day as the company's projects come to fruition.

Such expansion will prove necessary as the company's production outlook for the near future continues to grow, said Makuch.

Full commercial production of the Timmins Mine in 2010 will allow for 100,000 ounces, a number that will jump to 200,000 ounces a year and beyond as Lake Shore brings Bell Creek online and begins looking at its other...