Lake Shore Gold (TSX:LSG) reported strong quarterly results, churning out what it said was a record 52,300 ounces gold, up 70 percent from the same quarter a year ago.
In the first half this year Lake Shore production was just shy of 100,000 ounces and it said it now aimed to hit the close to the top of its 160,000 to 180,000 ounce production goal for 2014.
The record performance comes on the back of a recent mill expansion and improved gold grades, which have been a sore point for Lake Shore in the past.
A year ago in the second quarter Lake Shore reported milling 230,920 tonnes ore @ 4.3 g/t gold, but in the latest quarter that was up substantially on both counts: 309,800 tonnes @ 5.4 g/t AU.
Lake Shore said its cash and bullion holdings had hit $52 million up from C$28 million a year ago and meantime it had reduced debt to the tune of $17 million in the first half 2014.
“Supported by our growing financial strength, we have resumed drilling at our mines to grow reserves and resources and extend mine life,” Lake Shore President and CEO said in a prepared statement.
In all Lake Shore counts 598,800 ounces gold in reserves at 4.6 g/t Au along with nearly 3 million ounces gold in measured and indicated resources (a little less than half of which are found at its producing assets.)
Lake Shore’s mines and proejcts are in Canada’s Timmins Camp.