Exhibit 99.1

 

TECHNICAL REPORT ON THE UPDATE OF MINERAL RESOURCE

ESTIMATE FOR THE GOLD RIVER PROPERTY,

THORNELOE TOWNSHIP,

TIMMINS, ONTARIO,

CANADA

 

NTS: 42-A-06, 06

Longitude: 81.53° West, Latitude: 48.35° North

UTM (NAD 83, Zone17): 460,912m East, 5,355,469m North

 

PREPARED FOR:

 

LAKE SHORE GOLD CORP.

181 University Ave, Suite 2000

Toronto, Ontario, Canada, M5H 3M7

 

And

 

WEST TIMMINS MINING INC.

181 University Ave, Suite 2000

Toronto, Ontario, Canada, M5H 3M7

 

Prepared by:

Jacques Samson, P.Geo.

Robert Kusins, P.Geo.

David Powers, P.Geo.

 

Effective Date: January 17, 2012

Report Date: April 05, 2012

 

 

Table of Contents

 

			Page
1.0:	SUMMARY		01
2.0:	INTRODUCTION		05
	2.1.0: Units and Currency		06
	2.2.0: List of Abbreviations		06
	2.3.0: Definitions		08
	2.3.1: Mineral Resource		09
		2.3.2: Inferred Mineral Resource	09
		2.3.3: Indicated Mineral Resource	09
		2.3.4: Measured Mineral Resource	09
		2.3.5: Mineral Reserve	10
		2.3.6: Probable Mineral Reserve	10
		2.3.7: Proven Mineral Reserve	10
	2.4.0: Glossary		10
		2.4.1: General Glossary	10
		2.4.2: Lake Shore Gold Corp. Mine Site Terminology	12
3.0:	RELIANCE ON OTHER EXPERTS		14
4.0:	PROPERTY DESCRIPTION AND LOCATION		16
	4.1.0: Property Description		16
	4.2.0: Recent Ownership and Underlying Agreements		19
	4.3.0: Location		20
	4.4.0: Past Mining Activity, Environmental Liabilities and Permitting		21
5.0:	ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY		24
	5.1.0: Accessibility		24
	5.2.0: Climate		24
	5.3.0: Local Resources and Infrastructure		24
	5.4.0: Physiography		25
6.0:	HISTORY		27
	6.1.0: Prior Ownership		27
	6.2.0: General History		27
	6.3.0: Historical Resource Estimates		31
7.0:	GEOLOGICAL SETTINGS AND MINERALIZATION		33
	7.1.0: General Geological Setting		33
	7.2.0: Regional Geology and Structure		36
	7.3.0: Property Geology		41
		7.3.1: Lithology	42
		7.3.1.1: Porcupine Metasedimentary Rock Units	42
		7.3.1.2: Metamorphosed Mafic Volcanic Rock Units	42

 

i

 

Table of Contents

 

			Page
		7.3.1.3: Polylithic Mafic Metaconglomerate Rock Unit	42
		7.3.1.4: Pebbly or Mud Chip Metaconglomerate Rock Unit	43
		7.3.1.5: Metamorphosed Quartz and Quartz-feldspar Porphyry Dykes or Sills	43
		7.3.1.6: Potassium Feldspar Syenite Intrusive Rock Unit	43
		7.3.1.7: Metamorphosed Mafic Dykes	44
		7.3.1.8: Diabase Dykes	44
	7.4.0: Structural Geology		49
	7.5.0: Mineralization and Alteration		51
8.0:	DEPOSIT TYPES		55
	8.1.0: General Overview		55
9.0:	EXPLORATION		57
	9.1.0: General Overview		57
10.0:	DRILLING		62
	10.1.0: General Overview		62
	10.2.0: Diamond Drilling By West Timmins Mining Inc. (2006 to 2009)		63
	10.3.0: Diamond Drilling By Lake Shore Gold Corp. (2010 to January 17, 2012)		64
11.0:	SAMPLING PREPARATION, ANALYSIS, AND SECRITY		66
	11.1.0: Historical Diamond Drilling		66
		11.1.1: Band-Ore Resources Sampling Method and Approach 1993-2006	66
		11.1.2: Time Period 1995-1998	66
		11.1.3: Time Period 2003	67
		11.1.4: Time Period 2004	67
		11.1.5: Time Period 2005	68
		11.1.6: West Timmins Mining Inc. Period 2006-2009	68
	11.2.0: Lake Shore Gold Corp. Sampling Method and Approach 2009 to Present		69
		11.2.1: General Overview	69
		11.2.2: Core Handling and Logging Protocols	70
		11.2.3: Hole Collar and Downhole Attitude Surveys	70
		11.2.4: Security	71
		11.2.5: Surface Diamond Drill Core Sample Preparation, Analysis And Analytical Procedures	71
		11.2.6: Data Management	73
		11.2.7: Accuracy Analysis — Standards and Blanks	73
		11.2.8: Precision Analysis — Duplicates	74
		11.2.9: Reporting and Plotting	74

 

ii

 

Table of Contents

 

			Page
11.3.0: Check Assay Program			74
		11.3.1: General Description	74
		11.3.2: Procedures	74
	11.4.0: Discussion		75
		11.4.1: General Overview	75
12.0:	DATA VERIFICATION		77
	12.1.0: General Discussion		77
	12.2.0: Historical Treatment		77
	12.3.0: Lake Shore Gold Corp. Data		79
	12.4.0: Electronic Database Verification		80
	12.5.0: Recommendations		81
13.0:	MINERAL PROCESSING AND METALLURGICAL TESTING		82
	13.1.0: General Discussion		82
14.0	MINERAL RESOURCE ESTIMATES		83
	14.1.0: Summary		83
	14.2.0: Estimation Method		86
		14.2.1: Estimation Method and Parameters	86
		14.2.2: Database	90
		14.2.3: Grade Capping	91
		14.2.4: Block Model Assay Compositing	95
	14.3.0: Specific Gravity		97
	14.4.0: Variography		97
	14.5.0: Block Model Mineral Resource Modeling		99
		14.5.1: General	99
		14.5.2: Block Model Parameters	99
		14.5.3: Grade Interpolation	99
	14.6.0: Block Model Validation		102
	14.7.0: Mineral Resources and Classification		107
		14.7.1: General	107
		14.7.2: Mineral Resources	108
	14.8.0: Additional Drill Hole Information Evaluation		116
	14.9.0: Recommendations		117
15. 0:	MINERAL RESERVE ESTIMATES		118
16.0:	MINING METHOD		119
17.0:	RECOVERY METHODS		120
18.0:	PROJECT INFRASTRUCTURE		121

 

iii

 

Table of Contents

 

			Page
19.0:	MARKET STUDIES AND CONTRACTS		122
20.0:	ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT		123
	20.1.0: Permits		123
	20.2.0: Studies		123
	20.3.0: Consultation		124
21.0:	CAPITAL AND OPERATING COSTS		125
22.0:	ECONOMIC ANALYSIS		126
23.0:	ADJACENT PROPERTIES		127
	23.1.0: General Statement About Adjacent Properties		127
	23.2.0: Adventure Gold Inc. — Meunier 144 Gold Property, Bristol Township		127
	23.3.0: Pelangio Exploration Inc. — Poirier Option, Bristol Township		129
	23.4.0: Newcastle Minerals Limited — West Timmins Gold Project, Carscallen Township		129
	23.5.0: Richmont Mines Inc. Cripple Creek Property, Denton Township		130
	23.6.0: Explor Resources Inc. — Timmins Porcupine West Property, Bristol and Ogden Townships		130
24.0:	OTHER RELEVANT DATA AND INFORMATION		132
25.0:	INTERPRETATION AND CONCLUSIONS		133
26.0:	RECOMMENDATIONS		135
27.0:	REFERENCES		137
	27.1.0: Reports and Schedules		137
	27.2.0: Assessment Research Imaging Files (AFRI)		144
	27.3.0: Press Releases		150
28.0:	DATE AND SIGNATURE PAGE		157
29.0:	CERTIFICATES OF QUALIFIED PERSONS		158
	Jacques Samson, P.Geo.		158
	Robert Kusins, P.Geo.		160
	David Powers, P.Geo.		162

 

iv

 

Table of Contents

 

		Page
30.0:	APPENDICES	164
	Appendix 1: Diamond Drill Hole Collar Locations, Azimuth, Inclination, and Metres Drilled	164
	Appendix 2: Diamond Drill Core Sampling Summary	179
	Appendix 3: Diamond Drill Holes Not Used in The Block Model	191
	Appendix 4: Gold River Solid Intersections	201
	Appendix 5: Gold River QA/QC Graphs of Standards and Blanks	210
	Appendix 6: Check-Assay Program by Lake Shore Gold Corp. of Pulps From Historical Diamond Drill Holes	221
	Appendix 7: Photos	226
	Appendix 8: Resource Modeling and Estimation of the Gold River Trend Deposits, M. Dagbert (2012), SGS Canada Inc. Geostat.	234
LIST OF TABLES
	Table 1.1: Gold River Trend Deposits Mineral Resource Estimate,	03
	Table 1.2: Proposed Program and Budget	04
	Table 2.2.1: Abbreviations	06
	Table 2.4.1: Glossary	10
	Table 4.1.1: Claims List	17
	Table 4.4.1: Species at Risk	21
	Table 5.2.1: Average Temperature, Precipitation and Snow Fall Depths for the Timmins Area	24
	Table 6.2.1: List of “AFRI” Reports for the Gold River Property And Surrounding Area	29
	Table 6.2.2: Gold River Property Significant Historical Work	30
	Table 7.2.1: Tectonic Assemblages	39
	Table 8.1.1: Operations of Greater Than 100,000 Ounces of Gold Production in the Porcupine Gold Camp	56
	Table 9.1.1: Summary of Exploration Activities (2006 to Effective Date, January 17, 2012)	58
	Table 10.1.1: Diamond Drilling and Core Sampling Summary for the Gold River Property	62
	Table 11.1.0: OREAS Standards Used by Lake Shore Gold Corp.	72
	Table 11.4.1: Gold River QA/QC Diamond Drill Core Sampling Program	75
	Table 14.1.1: Gold River Trend Deposits Mineral Resource Estimates	83
	Table 14.1.2: Comparison of Historic and Current Zone Nomenclature	84
	Table 14.2.2.1: Summary of GEMS SQL Drill Hole Database	91
	Table 14.2.3.1: Basic Statistics of Raw Au Assays Resource Solids	92
	Table 14.2.3.2: Samples Above Grade Cap By Zone	95
	Table 14.2.4.1: Sample Composite Statistics	96
	Table 14.5.2.1: Block Model Grid Parameters	99
	Table 14.5.3.1: Search Ellipse Parameters	100

 

v

 

Table of Contents

 

		Page
LIST OF TABLES
	Table 14.6.1: Comparison of ID2 and Nearest Neighbour Interpolation, Blocks above 0.0 gpt Au Unclassified	106
	Table 14.7.2.1: Gold River Trend Deposits Resources	107
	Table 14.7.2.2: Gold River Trend Deposits Resources by Level	108
	Table 14.7.2.3: Gold River Trend Deposits Mineral Resource Estimates	113
	Table 14.7.2.4: Gold River Deposits Sensitivities	114
	Table 23.1.0: Distance from Center of Gold River Property to Significant Timmins Ares Mining Landmarks	126
	Table 23.4.1: Summary of Work New Castle Minerals Limited	128
	Table 25.1: Mineral Resources Estimate — January 2012	133
	Table 26.0.1: Proposed Program and Budget	135
LIST OF FIGURES
	Figure 4.1.1: Claim Sketch Map	22
	Figure 4.3.1: Location Map	23
	Figure 5.4.1: Physiography Map	26
	Figure 7.2.1: Tectonic Assemblages of the Abitibi Subprovince East Of the Kapuskasing Structural Zone	38
	Figure 7.2.2: Regional Geology Map	40
	Figure 7.3.1: Property Geology Map	45
	Figure 7.3.2: East Deposit Geology Map	46
	Figure 7.3.3: Generalized Cross-Section 460920 East, Looking West	47
	Figure 7.3.4: 3D View of Resource Outline Looking to the Northeast	48
	Figure 9.1.1: Measured Vertical Gradient with Line Contours and EM Anomaly Symbols	59
	Figure 9.1.2: EM AeroTem Off-Time Profiles (Channels Z2-Z16) and EM Anomaly Symbols	60
	Figure 9.1.3: Total Magnetic Intensity with Line Contours and EM Anomaly Symbols	61
	Figure 10.1: Surface Diamond Drill Hole Collar Locations and Vertical Projection to Surface of the Outer Perimeter of the Resource Estimation	65
	Figure 14.1.1: 3-D View of Told River Trend Deposits, Looking Northeast	85
	Figure 14.2.1: 3-D View of East Deposit Resource Solids, Looking Northeast	88
	Figure 14.2.2: 3-D View of West Deposit Resource Solids, Looking Northeast	89
	Figure 14.2.3.1: Cumulative Frequency East Deposit (Excluding Kapika Zone)	93
	Figure 14.2.3.2: Log Cumulative Frequency East Deposit (Excluding Kapika Zone)	93
	Figure 14.2.3.3: Cumulative Frequency Kapika Zone	94
	Figure 14.2.3.4: Log Cumulative Frequency Kapika Zone	94
	Figure 14.4.1: Variograms	98
	Figure 14.6.1: Section 459560 Looking West — Resource Model	103

 

vi

 

Table of Contents

 

					Page
LIST OF FIGURES
	Figure 14.6.2: Section 461460 Looking West — Resource Model				104
	Figure 14.6.3: Block and Drill Hole Grades -160m Level				105
	Figure 14.7.2.1: 3-D View of East Deposit Block Model Looking to the Northeast				109
	Figure 14.7.2.2: 3-D View of East Deposit Block Model Looking to the Northeast				110
	Figure 14.7.2.3: Resource Classification 4800 Zone, Longitudinal View Looking North				112
	Figure 14.7.2.4: Grade-Tonnage Graph, Unclassified				115
	Figure 23.1: Location of Adjacent Properties				127

 

		Appendix 7
LIST OF PLATES
	Plate 1: Typical sandstone in the Porcupine sediments, north of the GRSZ	226
	Plate 2: Highly strained turbidites within the GRSZ, nearing the mafic unit	226
	Plate 3: Mafic unit central to the Gold River Shear Zone (GRSZ)	227
	Plate 4: Folded high strain zone in the mafic unit — Kapika Zone	227
	Plate 5: Typical grey alteration and mineralization zone, south of the mafic unit	228
	Plate 6: Grey arsenopyrite-rich envelopes to quartz veinlets	228
	Plate 7: Mineralized grey quartz veinlets cross-cut by late quartz veins	229
	Plate 8: Visible gold in grey quartz veins	229
	Plate 9: Pyrite-arsenopyrite mineralization	230
	Plate 10: Mafic conglomerate south of the mafic unit	230
	Plate 11: Pebbly conglomerate in the Porcupine sediments	231
	Plate 12: Quartz-feldspar porphyry dykes and sills	231
	Plate 13: Syenitic dykelets — Kapika Zone	232
	Plate 14: Mafic intrusions in the turbidite sequence	232

 

vii

 

1.0: SUMMARY

 

This Technical Report is co-authored by: Jacques Samson, P.Geo.; Robert Kusins, P.Geo.; and David Powers P.Geo. on behalf of Lake Shore Gold Corp. (“Lake Shore Gold”, “Lake Shore”, “LSG”) and West Timmins Mining Inc. (“WTM”) for the Gold River property (the “Property”).  The report contains an update of exploration programs since the last report, submitted to SEDAR on March 30, 2006 by Band-Ore Resources Ltd., titled “Summary Geological Report on the Thorne Property, Bristol, Carscallen, Denton and Thorneloe townships, Porcupine Mining Division, Ontario” authored by G. Cavey, P.Geo.

 

The purpose of this technical report is to discuss the exploration results from 2006 up to and including results received by the effective date of January 17, 2012 and provide documentation to support the updated disclosure of Mineral Resources for the Gold River property.

 

Using exploration data carried out by Lake Shore Gold Corp. and West Timmins Mining Inc. from surface diamond drilling completed between the years 2006 and 2012 the Mineral Resource Estimate is prepared in accordance with National Instrument 43-101, Standards and Disclosure for Mineral Projects.

 

The Gold River property (the “Property”) consists of ninety-five (95) unpatented mineral claims, one hundred twenty-five (125) claim units, located within Thorneloe township (G-3229), Porcupine Mining Division, Ontario.  The claims are registered 100% to West Timmins Mining Inc., and are subject to underlying Net Smelter Royalty (“NSR”) agreements.  West Timmins Mining Inc. acquired this property and other mineral rights through the amalgamation of Sydney Resources Corporation and Band-Ore Resources Limited (“Band-Ore”).  Lake Shore Gold Corp. acquired the Gold River property as a result of the terms of the business combination agreement with West Timmins Mining Inc. that was announced completed on November 06, 2009.  On February 14, 2012 a Notice of Amalgamation was received that amalgamates the West Timmins Mining Inc. (403671) under /into Lake Shore Gold Corp. (401004).

 

The Property is situated approximately twenty (20) kilometres southwest of Timmins city centre, and approximately 550 line kilometres north-north-west of the City of Toronto.  The Project centre is located at Universal Transverse Mercator (“UTM”) co-ordinates North American Datum (“NAD”) 83, Zone 17: 460,912 metres east, and 5,355,469 metres north.  Easy, all weather road access to the property is provided by provincial Highways 101 and 144, with bush roads, and diamond drill trails north and south of the Tatachikapika River.

 

The Property is situated in the western portion of the Archean, Abitibi Greenstone Belt and is predominately underlain by metasedimentary rocks belonging to the Porcupine assemblage.  This metasedimentary basin is bound to the north and west by metavolcanic rocks of the Tisdale assemblage.  The Archean rock units are variably metamorphosed from greenschist to amphibolites facies.  To the east is the northward trending Mattagami Fault.  Major structures on the property include the east-west trending Porcupine-Destor Fault Zone (“DPFZ”) which crosses near the south boundary and the Gold River Trend, an intensely altered gold bearing deformation which is located two (2) kilometers to the north.  The Gold River Trend has been traced for approximately five (5) kilometers across the Property and is the key host for gold mineralization identified at the property to date.  Both the DPFZ and the Gold River Trend have been cross cut by the major north-south trending Mattagami River Fault. Displacement along the Mattagami River Fault has not been confirmed but current interpretations suggest rock units west of the fault and underlying the Lake Shore property have been moved

 

1

 

downwards and to the south relative to those on the east which extend in to the main part of the historic Timmins mining camp.

 

The bulk of significant gold mineralization at the property is contained within two main deposits referred to as the Gold River East Deposit and the Gold River West Deposit, which are located on a three (3.3) km strike length of the Gold River Trend, which straddles the Tatachikapika River.  Gold mineralization within the deposits generally occurs as stacked sets of steeply dipping irregular lenses which can vary from less than one metre up to about five (5) metres in width,  from one hundred (100) to over four hundred (400) metres in vertical height and from (fifty ( 50 ) to six hundred (600) metres in strike length.  Most mineralization identified to date occurs between surface and five hundred ( 500) metres below but has been traced with a few broadly spaced holes to as deep as 1,050  metres below surface, with several of the zones remaining open.

 

Gold mineralization within the zones is associated with areas of broad disseminated and quartz vein-related arsenopyrite and pyrite mineralization, which varies from less than one percent to greater than twenty (20) percent, locally.  Traces of pyrrhotite, tetrahedrite, stibnite, sphalerite, berthierite, boulangerite, zinkenite as well as native gold and native antimony have also been reported (Payne1996; Miller 2011).

 

Lake Shore Gold has prepared an updated Mineral Resource Estimate for the Gold River property based on historical diamond drilling and drilling completed by LSG between February 2010 and January 17th 2012. All drilling was completed from surface with drill spacing locally down to 20 to 25 metres on strike and down-dip and up to 100m spacing at depth. A total of seven hundred fifty-two (752) holes were completed on the Gold River property of which Lake Shore Gold completed one hundred forty (140) holes for a total of fifty-five thousand eight hundred seven (55,807) metres. Most of drilling completed by Lake Shore targeted the East Deposit area above the six hundred (600) metre depth.

 

The Resource models are comprised of fifteen zones which have been grouped into two deposits called the East and West Deposits. The Deposits extend for 3.3 kilometres along the Gold River Trend and are roughly centered on 461480E section and extend from surface to the 9200m elevation (0 to 800m below surface).  The bulk of the resources are located above the 400m Level with 83% of the tonnes and 73% of the ounces located above this elevation.

 

The Gold River Resource totals 0.69Mt at 5.29 g/t Au, amounting to 117,400 ounces of gold in the Indicated category and 5.27Mt at 6.06 g/t Au, amounting to 1,027,800 ounces of gold in the Inferred category as shown in Table 1.1. The effective date of this resource is January 17, 2012.

 

The Resources were estimated using Inverse Distance to the power 2 (ID2) interpolation method with all gold assays capped to 50 gram metres or 25 gram metres depending on the zone, and an assumed long-term gold price of $1,200 (US) per ounce.  The base case estimate assumes a cut-off grade of 2.0 g/t Au.

 

A nearest neighbor interpolation of the block model using the same parameters and search ellipse as the ID² interpolation was completed and compared. Results showed a slight increase in tonnes grade and ounces using the nearest neighbor interpolation method with no significant differences between the two interpolation methods.

 

Michel Dagbert, Eng., senior geostatistician, SGS Geostat reviewed the Gold River block model and employed an alternative grade interpolation technique to cross check Lakeshore’s own block model.

 

2

 

Michel employed the traditional approach for estimating narrow sheet like structures by projecting hole mineralized intersections to a vertical section plane and using polygons of influence about the intercepts. The polygonal approach produced a total ounce estimate of 1.05Moz versus 1.27Moz at no cut-off for the block model, within acceptable limits given the mostly inferred categorization of the estimated resource.

 

TABLE 1.1: GOLD RIVER TREND DEPOSITS MINERAL RESOURCE ESTIMATES

(Prepared by Lake Shore — January, 2012)

 

Resource						Capped Grade		Contained Gold
Classification		Deposit		Tonnes		g/t Au		(ounces)
Indicated Resources		East		597,000		5.42		104,100
		West		93,000		4.44		13,300
		Total Indicated		690,000		5.29		117,400
Inferred Resources		East		4,317,000		6.39		887,300
		West		955,000		4.57		140,500
		Total Inferred		5,273,000		6.06		1,027,800

 

Notes:

 

1.                    CIM definitions were followed for classification of Mineral Resources.

2.                    Mineral Resources are estimated at a cut-off grade of 2.0 g/t Au.

3.                    Mineral Resources are estimated using an average long-term gold price of US$1,200 per ounce and a US$/C$ exchange rate of 0.93.

4.                    A minimum mining width of two metres was used.

5.                    Capped gold grades are used in estimating the Mineral Resource average grade.

6.                    Sums may not add due to rounding.

7.                    There are no Mineral Reserves estimated for the Gold River Property.

8.                    Metallurgical recoveries are assumed to average 85%.

9.                    Mining costs are assumed to average $82.00/tonne.

10.              Mr. Robert Kusins, B.Sc., P.Geo. is the Qualified Person for this Resource Estimate.

 

There are no Mineral Reserves present on the property as of the date of this Technical Report.

 

The following items are recommended for further study and evaluation:

1)              Evaluate the replacing of the ID2 interpolation method by ordinary kriging.

2)              Continue monitoring of specific gravity and grade capping, as addition drill hole information is added to the database, to insure appropriate values are being used.

3)              Additional drilling, particularly zone 4800_S3D which currently accounts for about one third of Inferred Resource ounces, to better delineate the extent of the Resource and increase its confidence level.

4)              Evaluate isolated intersections to determine areas which may be brought into Resources with additional drilling.

 

3

 

5)              To attempt to better identify and record discrete lithologic units as the mafic unit, conglomerates with an emphasis on “grey alteration and mineralization zones”, grey quartz veinlets and areas of high strain.

6)              Construct a lithological model of the deposits that would include a sectional and plan view interpretation.

7)              Continue to filter the available geophysical surveys, to assist in the interpretation of alteration, lithology and high strain zones.

8)              Continue to keep tracking and improving diamond drill log quality and completeness.

9)              Complete metallurgical testing on all of the mineralized zones, comparing similarities and differences.

 

Proposed is an $8,228,000, two stage exploration program based upon the above recommendations.  Expenditures proposed for Phase 2 will be based upon results received in Phase 1, and should be adjusted accordingly.  The Phase 1 program should be directed to expand the existing Inferred Resources by focusing on extending the higher grade mineralized zones along strike and at depth, especially 4800_SD3. The Phase 2 program would involve continued resource expansion, limit infill drilling to upgrade a portion of the Inferred to Indicated and exploration drilling further east and west of the Gold River Deposits to follow up on favorable drill hole intersections. Table 26.0.1: lists the proposed exploration categories and proposed expenditures.

 

TABLE 1.2:  PROPOSED PROGRAM AND BUDGET

 

PHASE		SURVEY/WORK TYPE		BUDGET ($)
Phase 1		Diamond Drilling (17,100m)		2,138,000
		Analytical/Samples (18,900 samples)		444,000
		Contractor, core storage		30,000
		Structural Geological Consultant		35,000
		Geophysical Consultant		25,000
		Metallurgical Work		28,000
		Geological Compilation/Core re-logging		20,000
		Share of Office Administration		140,000
		Subtotal		2,860,000
Phase 2		Diamond Drilling (25,000m) fill-in resource		3,125,000
		Exploration Diamond Drilling (10,000m)		1,250,000
		Analytical/Samples (32,450 samples)		763,000
		Geological Consultant		20,000
		Metallurgical Work		50,000
		Share of Office Administration		160,000
		Subtotal		5,368,000
		Grand Total		8,228,000

 

4

 

2.0: INTRODUCTION

 

This Gold River property Technical Report is co-authored by Jacques Samson, P.Geo.; Robert Kusins, P.Geo.; and David Powers, P.Geo. on behalf of Lake Shore Gold Corp (“Lake Shore Gold”, “Lake Shore”, “LSG”) and West Timmins Mining Inc. (“WTM”) and conforms to NI 43-101 Standards of Disclosure for Mineral Projects.

 

Lake Shore Gold Corp. (“Lake Shore Gold”, “LSG”) is a publicly traded company listed on the Toronto Stock Exchange and trading under the symbol LSG.  Lake Shore Gold was founded in 2002 to explore for precious and base metals hosted within the portions of the Canadian Shield situated in Quebec and Ontario.  On November 06, 2009 Lake Shore Gold and West Timmins Mining Inc. (“WTM”) signed a complete business combination agreement resulting in WTM becoming a wholly owned subsidiary of LSG.  West Timmins Mining Inc. started trading September 18, 2006 after the amalgamation of Sydney Resource Corporation, and Band-Ore Resources Ltd.

 

The authors have prepared this report using a combination of public available and confidential information.  This report is sourced from an amalgamation of several reports listed it the Section 27 labeled References.

 

Contributions to geology by outside consultants include: petrography, ore microscopy and scanning electron microscope investigations by Dr. Miller of Miller and Associates, of Ottawa; mineralization and structural studies comparing Thunder Creek, Timmins Mine and the Gold River property by Mr. David Rhys, of Panterra Geoservices Inc., petrology studies of the Timmins Mine and Thunder Creek area by Katherina Ross, Panterra Geoservices.

 

This technical report describes exploration results for an area of 95 mineral claims, a smaller area than was previously reported and filed on SEDAR by Band-Ore Resources Ltd. in 2002, 2004, and 2006.

 

Robert (Bob) Kusins (P. Geo.) and Chief Resource Geologist for Lake Shore Gold Corp. is responsible for Items: 1, 14, 15, 16, 17, 24, 25, 26, and 27 contained in this report and is the principal QP responsible for this report.

 

Jacques Samson (P. Geo.) and Senior Project Geologist for Lake Shore Gold, is responsible for Items: 1, 7, 12, 13, 19, 21, 22, 24, 25, 26 and 27 contained in this report.

 

David Powers (P.Geo.) of David Powers Geological Services is responsible for Items 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 18, 20, 23, 24, 25, and 27 of this report.

 

All three authors were on site December 06, 2011 observing core storage, recent diamond drilling and diamond drill collar preservation.

 

Historical work in the Gold River Gold Zones area was reviewed by referencing assessment reports filed at the Ministry of Northern Development and Mines’ (“MNDM”) office at the Ontario Government Complex, Highway 101 East, Timmins (Porcupine), Ontario; and Assessment File Research Imaging (“AFRI”) at: www.geologyontario.mndm.gov.on.ca/.  Option and legal agreements were reviewed at the Lake Shore Gold Exploration Office.

 

5

 

2.1.0: UNITS AND CURRENCY

 

Metric and Imperial units are used throughout this report.  Canadian dollars (“C$”, “$”) is the currency used unless otherwise noted.  On April 01, 2012 the exchange rate was approximately $1.00 C dollar to 1.006 US$.

 

Common conversions used included converting one ounce of gold to grams gold with a factor of 31.104 grams per troy ounce; and one ounce gold per ton with a conversion factor of 34.29 grams gold per tonne.

 

2.2.0: LIST OF ABBREVIATIONS

 

Table 2.2.1 lists the common abbreviations that may be used in the report.

 

TABLE 2.2.1: ABBREVIATIONS

 

Unit or Term		Abbreviation or Symbol
Above mean sea level			amsl, ASL
Advanced Exploration Project			AEP
Atomic Absorption			AA
Arsenic			As
Arsenopyrite			aspy
Azimuth			AZ
Billion years ago			Ga
British thermal unit			Btu
Carbon in leach			CIL
Carbon in pulp			CIP
Centimetre			cm
Copper			Cu
Cubic centimetre			cm³
Cubic feet per second			ft³/s, cfs
Cubic foot			ft³
Cubic inch			in³
Cubic metre			m³
Cubic yard			yd³
Day			d
Days per week			d/wk
Days per year (annum)			d/a
Dead weight tonnes			DWT
Degree			°
Degree Celsius			°C
Degrees Fahrenheit			°F
Diamond bore hole			ddh, DDH
Diamond drill hole			ddh, DDH
Dollars Canadian			$C
Dry metric ton			dmt

 

6

 

Foot			ft
Gallon			gal
Gallon per minute			gpm
Gold			Au
Gold equivalent grade			AuEq
Gram			g
Gram metres			m.g/t
Grams per litre			g/l
Grams per tonne			g/t, gpt
Greater than			>
Hectare (10,000m²)			ha
Hour			h (not hr)
Inch			in, “
Kilo (1,000)			k
Kilogram			kg
Kilograms per cubic metre			kg/m³
Kilograms per hour			kg/h
Kilograms per square metre			kg/m²
Kilometre			km
Kilometres per hour			km/h
Less than			<
Lead			Pb
Life of mine			LoM
Litre			L
Litres per minute			L/m
Metre			m
Metres above sea level			masl
Metres per minute			m/min
Metres per second			m/s
Metric ton (tonne) (2,000 kg) (2,204.6 pounds)			t
Micrometre (micron)			µm
Miles per hour			mph
Milligram			mg
Milligrams per litre			mg/L
Milliliter			mL
Millimetre			mm
Million			M
Million grams			M g
Million tonnes			Mt
Million Troy ounces			M oz
Million Years			Ma
Minute (plane angle)			min, ‘
Minute (time)			min
Month			mo
National Instrument 43-101 (Canadian)			NI 43-101
No Personal Liability			N.P.L.
Ounces			oz
Page			p, pg

 

7

 

Parts per billion			ppb
Parts per million			ppm
Percent			%
Percent moisture (relative humidity)			% RH
Potassium			K
Pound(s)			lb
Pounds per square inch			psi
Preliminary Economic Assessment			PEA
Pyrite			py
Pyrrhotite			po
Quality Assurance/Quality Control			QA/QC
Quart			qt
Revolutions per minute			rpm
Rock Quality Description			RQD
Second (plane angle)			sec, “
Second (time)			s
Short ton (2,000 lb)			st
Short ton (US)			t (US)
Short tons per day (US)			tpd (US)
Short tons per hour (US)			tph (US)
Short tons per year (US)			tpy (US)
Silver			Ag
Sodium			Na
Specific gravity			SG
Square centimetre			cm²
Square foot			ft²
Square inch			in²
Square kilometre			km²
Square metre			m²
Thousand tonnes			kt
Tonne (1,000 kg)			t
Tonnes per day			t/d, tpd
Tonnes per hour			t/h
Tonnes per year			t/a
Volt			V
Week			wk
Weight/weight			w/w
Wet metric ton			wmt
Yard			yd
Year (annum)			a
Year (US)			yr

 

2.3.0: DEFINITIONS

 

The following definitions of Mineral Resources and Mineral Reserved have been prepared by the CIM Standing Committee on Reserve Definitions and Adopted by the CIM Council on November 27, 2010.

 

8

 

2.3.1: MINERAL RESOURCE

 

Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.  An Inferred Mineral Resource has a lower level of confidence that that applied to an Indicated Mineral Resource but has a lower level of confidence that a Measured Mineral Resource.

 

A “Mineral Resource” is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has a reasonable prospect for economic extraction.  The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

 

2.3.2: INFERRED MINERAL RESOURCE

 

An “Inferred Mineral Resource” is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified geological and grade continuity.  The estimate is based on limited information and sampling gathering through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drill holes.

 

2.3.3: INDICATED MINERAL RESOURCE

 

An “Indicated Mineral Resource” is the part of the Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics, can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit.  The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings, and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

 

2.3.4: MEASURED MINERAL RESOURCE

 

A “Measured Mineral Resource” is the part of the Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate applications of technical and economic parameters, to support production planning and evaluation for the economic viability of the deposit.  The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

 

9

 

2.3.5: MINERAL RESERVE

 

Mineral Reserves are sub-divided in order of increasing confidence into Probable Mineral Reserves and Proven Mineral Reserves.  A Probable Mineral Reserve has a lower level of confidence than a Proven Mineral Reserve.

 

A Mineral Reserve is the economically mineable part of the Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study.  This Study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.  A Mineral Reserve includes diluting minerals and allowances for losses that may occur when the material is mined.

 

2.3.6: PROBABLE MINERAL RESERVE

 

A “Probable Mineral Reserve” is the economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study.  This Study must include adequate information on mining, processing metallurgical, economic and other relevant factors that demonstrate, at the time of reporting that economic extraction can be justified.

 

2.3.7: PROVEN MINERAL RESERVE

 

A “Proven Mineral Reserve” is the economically mineable part of a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study.  This Study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, the economic extraction is justified.

 

2.4.0: GLOSSARY

 

2.4.1: GENERAL GLOSSARY

 

Table 2.4.1 is a summary table of common technical words accompanies by a simple explanation of the term or word as the term pertains to this report.

 

TABLE 2.4.1: GLOSSARY

 

TERM		EXPLANATION
Assay:		The chemical analysis of mineral samples to determine the metal content.
Capital Expenditure:		All other expenditures not classified as operating costs.
Composite:		Combining more than one sample result to give an average result over a larger distance.

 

10

 

Concentrate:		A metal-rich product resulting from a mineral enrichment process such as gravity concentration or floatation, in which most of the desired mineral has been separated from waste material in the ore.
Crushing:		Initial process of reducing ore particle size to render it more amenable for further processing.
Cut-off Grade (CoG):		The grade of mineralized rock, which determines as to whether or not it is economic to recover its gold content by further concentration.
Dilution:		Unwanted waste, which is mined with ore.
Dip:		Angle of inclination of a geological feature / rock from the horizontal.
Fault:		The surface of a fracture along which movement has occurred.
Footwall:		The underlying side of an orebody or stope.
Gangue:		Non-valuable components of the ore.
Grade:		The measure of concentration of “gold” within mineralized rock.
Hangingwall:		The overlying side of an orebody or stope.
Haulage:		A horizontal underground excavation which is used to transport mined material.
Igneous:		Primary crystalline rock formed by the solidification of magma.
Level:		Horizontal tunnel with the primary purpose to transport personnel and materials.
Lithological:		Geological description pertaining to different rock types.
LoM Plans		Life of mine plans.
Material Properties:		Mining properties.
Metamorphism:		Process by which consolidated rock is altered in composition, texture, or internal structure by conditions and forces of heat and pressure.
Milling:		A general term used to describe the process in which the ore is crushed, ground and subjected to physical or chemical treatment to extract the valuable metals to a concentrate or finished product.
Mineral/Mining Lease:		A lease area for which mineral rights are held.
Mining Asset:		Material Properties and Significant Exploration Properties.
Ongoing Capital:		Capital estimates of a routine nature, which is necessary for sustaining

 

11

 

		operations.
Ore Reserve:		See Mineral Reserve
RoM		Run of Mine.
Sedimentary:		Pertaining to rocks formed by the accumulation of sediments, formed by the erosion of other rocks.
Shaft:		An opening cut downwards from the surface for transporting personnel, equipment, supplies, ore and waste.
Smelting:		A high temperature pyrometallurgical operation conducted in a furnace, in which the valuable metal is collected to a molten matte or doré phase and separated from gangue components that accumulate in a less dense molten slag phase.
Stope:		Underground void created by mining.
Stratigraphy:		The study of stratified rocks in terms of time and space.
Strike:		Direction of line formed by the intersection of strata surfaces with the horizontal plane, always perpendicular to the dip direction.
Sulphide:		A sulphur bearing mineral.
Tailings:		Finely ground waste rock form which valuable minerals or metals have been extracted.
Thickening:		The process of concentrating solid particles in suspension.
Total Expenditure:		All expenditures including those of an operation and capital nature.

 

2.4.2: LAKE SHORE GOLD MINE SITE TERMINOLOGY

 

Timmins West Complex:		The Company’s entire land package on the west side of the city, extending through Bristol, Thorneloe, Carscallen, Denton townships.
Timmins West Mine:		The combined areas that are currently being mined using the shared Infrastructure, namely the Timmins Deposit and the Thunder Creek Deposit.
Timmins Deposit:		The Deposits formerly known as the Timmins Mine (now one of two Deposits comprising the Timmins West Mine.
Thunder Creek Deposit:		A second deposit being mined in the Timmins West Mine.

 

12

 

Gold River Trend Deposits:		The combined East and West Deposits located on the Gold River property.
East Deposit:		The eastern deposit currently comprised of eleven mineralized zones including the Kapika Zone located on the Gold River property.
West Deposit:		The western deposit currently comprised of four mineralized zones located on the Gold River property.

 

13

 

3.0: RELIANCE ON OTHER EXPERTS

 

The authors have sourced the information for this report from an amalgamation of several reports listed it the Section 27 labeled References. These references include government geological reports, press releases, company annual reports, assessment reports filed with the Ministry of Northern Development and Mines’ (“MNDM”), previously SEDAR filed NI 43-101 reports and reports both public and confidential provided by Lake Shore Gold Corp.

 

Jacques Samson, P.Geo., is an employee of Lake Shore Gold Corp. in the capacity of Senior Project Geologist and has been the Qualified Person (“QP”) responsible for overseeing and reporting the exploration programs at the Gold River Project, since Lake Shore Gold Corp. started to manage the exploration resulting from the November 06, 2009 Business Combination Agreement.   He is responsible for Items: 1, 7, 12, 13, 19, 21, 22, 24, 25, 26 and 27 contained in this report.

 

Robert (Bob) Kusins, P.Geo., is employed by Lake Shore as Chief Resource Geologist and is the QP responsible for the mineralization modeling, Resource Estimate and Items: 1, 14, 15, 16, 17, 24, 25, 26, and 27 contained in this report.  He is also the principal QP responsible for this report.

 

David Powers, P. Geo. is an independent geologist who is responsible for Items 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 13, 18, 20, 23, 24, 25, and 27 of this report.

 

Technical Reports filed on SEDAR in 2002, 2004, and 2006 authored by Mr. George Cavey of OREQUEST, summarize the mineral exploration completed by Band-Ore Resources Limited from the time the property was acquired up to and including 2006.  During this period Mr. Robert Duess, P. Geo. was the Qualified Person overseeing the exploration.

 

Mr. Darin Wagner, former President of West Timmins Mining Inc. was the P. Geo. and Qualified Person directing exploration activities, responsible for QA/QC during the period September 18, 2006 to November 06, 2009, and responsible for the transfer of all technical data to Lake Shore Gold Corp.

 

Michel Dagbert, P. Eng. of SGS Geostat Limited of 10 boul. De la Seigneurie Est., Suite 203, Blainville, Quebec, provided the technical review of QA/QC data, review of the 3 D modeling and estimation parameters, capping limits of grades, and verification of the resource block model with additional recommendations for block resource estimation.

 

Contributions to geology by outside consultants include: petrography, ore microscopy and scanning electron microscope investigations by Dr. Miller of Miller and Associates, of Ottawa; mineralization and structural studies comparing Thunder Creek, Timmins Mine and the Gold River property by Mr. David Rhys, of Panterra Geoservices Inc., petrology studies of the Timmins Mine and Thunder Creek area by Katherina Ross, Panterra Geoservices.

 

The authors have relied on the professional integrity of the designated project Qualified Persons, to maintain and provide true and accurate reporting of the facts, throughout the project’s history.  Where possible the internal documents have been checked against public record filed for assessment purposes. The authors have reviewed reports, drill logs, and assay certificates issued during the exploration phases and have found them to be consistent and believe most of the data to be reliable within testable parameters.

 

14

 

Figures for this report have been prepared by Mr. Tom Savage, and others in the employ of Lake Shore Gold Corp. and modified by the authors.

 

15

 

4.0: PROPERTY DESCRIPTION AND LOCATION

 

4.1.0: PROPERTY DESCRIPTION

 

The Gold River property consists of ninety-five (95) unpatented mineral claims, one hundred twenty-five (125) claim units covering an area of approximately two thousand three hundred twenty (2,320) hectares located within Thorneloe township (G-3229), Porcupine Mining Division, Ontario.  The claims are registered 100% to West Timmins Mining Inc., a wholly owned subsidiary of Lake Shore Gold Corp. and are subject to underlying NSR agreements.  West Timmins Mining Inc. acquired this property and other mineral rights through the amalgamation of Sydney Resources Corporation and Band-Ore Resources Limited (“Band-Ore”) (September 2006).  On February 14, 2012 a Notice of Amalgamation was received that amalgamates the West Timmins Mining Inc . (403671) under /into Lake Shore Gold Corp. (401004).

 

The former Band-Ore, Thorne property ownership has been described by Mr. George Cavey, OREQUEST, in reports submitted by Band-Ore Resources Ltd. to SEDAR in 2002, 2004 and 2006.  This report discusses a smaller group of claims than was previously reported in 2006.

 

The ninety-five (95) claims require an annual assessment work requirement of four hundred ($400.00) dollars per unit to keep the claims in good standing. The annual required assessment work expenditures for the described property totals fifty thousand ($50,000.00) dollars.  Table 4.1.1 lists the claim units, their due date, work required and the associated underlying royalty agreement.

 

Active mining claim abstracts have been reviewed online at:

http://www.mci.mndm.gov.on.ca/claims/clm_mdva.cfm. The ownership on record is in the name of West Timmins Mining Inc., a wholly owned subsidiary of Lake Shore Gold Corp.

 

Figure 4.1.1 is a Claim Sketch Map illustrating the claim numbers and boundaries relative to local topographic and cultural features.

 

16

 

TABLE 4.1.1: CLAIMS LIST

 

Claim Number		Units		Due Date		Work Required			Agreement
796731		1		2015-APR-02		$	400.00		Royal Gold and Torogold (3%)
796732		1		2015-APR-02		$	400.00		Royal Gold and Torogold (3%)
796733		1		2015-APR-02		$	400.00		Royal Gold and Torogold (3%)
796734		1		2015-APR-02		$	400.00		Royal Gold and Torogold (3%)
805191		1		2015-JUN-01		$	400.00		Royal Gold and Torogold (3%)
805192		1		2015-JUN-01		$	400.00		Royal Gold and Torogold (3%)
805193		1		2015-JUN-01		$	400.00		Royal Gold and Torogold (3%)
834158		1		2015-DEC-04		$	400.00		Royal Gold and Torogold (3%)
834159		1		2015-DEC-04		$	400.00		Royal Gold and Torogold (3%)
834367		1		2015-DEC-19		$	400.00		Royal Gold and Torogold (3%)
834368		1		2015-DEC-19		$	400.00		Royal Gold and Torogold (3%)
834369		1		2015-DEC-19		$	400.00		Royal Gold and Torogold (3%)
838437		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838438		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838439		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838440		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838441		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838442		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838443		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838444		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838445		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838446		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838447		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
838448		1		2015-APR-09		$	400.00		Royal Gold and Torogold (3%)
892792		1		2015-FEB-06		$	400.00		Royal Gold and Torogold (3%)
923601		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923602		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923603		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923604		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923605		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923606		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923607		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923608		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923609		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923610		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923611		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923612		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923613		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923614		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923615		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)
923616		1		2015-MAY-12		$	400.00		Royal Gold and Torogold (3%)

 

17