This article was provided by the Ontario Mining Association (OMA), an organization that was established in 1920 to represent the mining industry of the province.
Ontario Mining Association member Lake Shore Gold Corp. exemplifies findings in the recent economic impact study “Mining: Dependable and Dynamic for Ontario’s Future.” This report, which demonstrates among other things that mining boosts communities, was produced by University of Toronto economists Peter Dungan and Steve Murphy.
Lake Shore Gold produced more than 85,700 ounces of gold in 2012 and it is a newer bullion producer in the Timmins camp – production began two years ago. The company operates its Timmins West complex and Bell Creek complex, where its mill is located, and it is developing the Fenn-Gib project, which is located about 60 kilometres east of Timmins.
The Fenn-Gib project has potential to be developed as an open pit gold mine. Exploration results from the property near Matheson show an indicated resource of 1.3 million ounces of gold and 800,000 inferred ounces of gold.
In 2012, the company spent $138.5 million on supplies and services in Timmins and a further $90 million was spent outside the Timmins area. “We are really trying to keep our dollars as close to Timmins as we possibly can,” said Dan Gagnon, Senior Vice President Operations at Lake Shore Gold. “Sixty-one percent of our spending was in Timmins and of the non-local spending of $90 million, roughly $53 million was spent in Northern Ontario.”
It is this type of spending that supports Timmins mine supply and service sector, which is estimated to have a value of more than $590 million annually and employ about 4,600 people. Lake Shore Gold is aiming to increase its production to between 120,000 and 135,000 ounces of gold in 2013 and 2014. The company expects to spend about $169 million at Timmins West and the Bell Creek mine and mill this year. Also in 2013, it will be investing about $10 million in mineral exploration activities, about the same amount as in 2012.
“We have a full pipeline of attractive projects and properties to drive future growth,” said Mr. Gagnon. Lake Shore Gold is a major employer in the Timmins region. It has more than 500 full time employees of its own and for mine development, mill expansion and other infrastructure work, there are about 300 contractors working at company sites.
Mr. Gagnon says one of his main focuses is to ensure that workplace safety is integrated into all aspects of the company’s operations. “My commitment to the families and to the people is really on safety,” said Mr. Gagnon. “Economic success is one thing but it doesn’t count if people are not working safely.”
Lake Shore Gold was formed in 2002 as an explorer for gold and base metals in the Canadian Shield. It became a gold producer in 2011. Further information on the company can be found at www.lsgold.com. This article is the eighteenth in a series of profiles of OMA member companies and their contributions to the vitality of Ontario’s society and economy.