December 1, 2010 / 5:23 PM / 8 years ago

UPDATE 1-Lake Shore Gold says Nov production up, shrs rise

* Mining rate above target of 1,500 tonnes/day at Timmins

* Files closure plan for commercial production at Timmins

* Shares rise 5 pct

Dec 1 (Reuters) - Canadian gold miner Lake Shore Gold Corp LSG.TO said production for Novemeber at its Bell Creek Mill and Timmins Mine in Ontario were higher than expected, sending its shares up 5 percent “The Bell Creek Mill achieved recoveries of about 97 percent with grades averaging around 7.00 grams per tonne,” Chief Executive Tony Makuch said in a statement. In November, Lake Shore processed about 12,000 ounces of gold at its wholly owned Bell Creek Mill and said it will meet or exceed its target of 10,000 ounces per month in 2010.

“We had expected that Lake Shore would achieve its targeted run rate of 10,000 ounces per month prior to the year-end, but are impressed to see the company beat its target handily and ahead of schedule,” analyst Tara Hassan of National Bank Financial said in a note.

Lake Shore, which filed closure plan for commercial production for its Timmins Mine, said the mining rate exceeded the target rate of 1,500 tonnes per day during the month.

The company said it is on track for commercial production at Timmins at the end of 2010. “We remain encouraged for 2011 which will be the company’s first full year of production at Timmins,” Hassan said.

Shares of the company were up 4 Canadian cents at C$4.04 Wednesday morning on the Toronto Stock Exchange. They have gained about 30 percent of their value in the last six months. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Jarshad Kakkrakandy)

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