Lake Shore Gold puts the shine on Timmins: commercial production to start in 2010.

• Author: Stewart, Nick
• Position: COMPANIES TO WATCH

With $29 million in exploration and $134 million in project spending budgeted for 2010, this marks the year Lake Shore Gold is set to make the leap from junior to mid-tier.

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The company's landmark plans come hot on the heels of an incredibly busy 2009, which saw the acquisition of joint-venture partner West Timmins Mining and the raising of more than $85 million in financing.

In the process, the company is providing renewed hope to a city that has received news of more than 600 jobs to be lost through Xstrata's Kidd Metallurgical site layoffs.

"This is really going to give us a good morale and economic boost at a time where it's needed," says Timmins Mayor Tom Laughren.

"It's good to see."

Lake Shore Gold's flagship project, the Timmins Mine, is expected to begin commercial production by the fourth quarter of 2010, with an anticipated target of 100,000 ounces of gold per year. The property has reserves of 830,000 ounces, and a resource of 1.1-million ounces.

Hopes are equally high for Lake Shore Gold's anticipated second mine, the Bell Creek Complex, consisting of the Bell Creek Mine, as well as the Vogel and Schumacher properties.

The company completed 52,000 metres of surface drilling across the complex in 2009, and an underground advanced exploration program is currently undergoing a industry-compliant resource study.

The Bell Creek shaft is being dewatered, allowing for ramp access at the Schumacher and Vogel properties. In all, there are 808,000 ounces worth of gold resources throughout the complex.

Initial development ore is being targeted at the property through 2010, with plans for pre-production in 2011 and commercial production in 2012.

The company further added to their potential for additional resources at its ever-growing Bell Creek Complex with the late December acquisition of Bell Creek West. The 28-square-kilometre exploration property was purchased from Goldcorp Canada Ltd., manager of the Porcupine Gold Mines Joint Venture (PJV) and Goldcorp Inc. in exchange for $15 million cash and $5 million in shares.

Among the acquired assets are the past-producing Marlhill Mine and a number of early-stage exploration targets, all of which straddle the New Mine Trend, which hosts Goldcorp's Hoyle Pond and Pamour mines.

The Bell Creek Mill, which will process the ore from the Timmins Mine, has...