To Shareholders of West Timmins Mining Inc.:
On March 9, 2007 respected mining analysts Bart Jaworski and Taylor MacDonald of Raymond James Ltd. published an Insight report which rated Lake Shore Gold Corp., our neighbours in the West Timmins Camp, as a Strong Buy with a 6-12 month target price of $4.00. Of particular interest to our shareholders are several statements contained within the report which outlines the potential for our Thunder Creek Property, the Timmins West Project and the Timmins Camp as a whole. The following excerpts from the Jaworski/MacDonald report serve to illustrate some of the potential of our West Timmins Gold Project.
Thunder Creek
"Last Wednesday, we had the opportunity to meet with Lake Shore's management team and tour the Timmins West and the pending Bell Creek project near Timmins, Ontario.
A key takeaway from the trip was the exploration potential at the Thunder Creek property, adjacent to Timmins West. We find Thunder Creek compelling due to the fact that: (a) the same prospective geological contact between volcanic and sedimentary rocks extends onto Thunder Creek from Timmins West; (b) along the contact, ultramafic intrusives (which host mineralization at Timmins West) are abundant; and (c) initial drilling (25 holes) has intersected interesting grades (the Rusk prospects). The sense we got from the site visit is that on-site geologists were rather keen to begin drilling this property.
Lake Shore has an option (announced November 12th, 2003) to earn a 60% interest in the 864 hectare land package from vendor, West Timmins Mining Inc. (WTM-T; not rated) by: (i) making cash payments totaling $370,000, (ii) spending $1,705,000 in exploration over five years and (iii) issuing 100,000 common shares over four years. In order to complete its earn-in, Lake Shore still has to pay WTM $200,000 in cash and spend a further $855,000 in exploration.�
Timmins West
"We were very impressed with the visit to the Timmins West property. Though we were aware of the project's proximity to the highway and easy ingress and egress, seeing trucks passing by through the trees as we stood next to the Diamond drill rig operating onsite made the site's prime location - at the intersection of Highways 101 and 144 - all the more clear.
Lake Shore expects to begin surface preparations for a 600 metre deep advanced exploration shaft. The shaft is planned to be sunk on a ridge where there is limited overburden (hence minimizing costs). Once the shaft is completed at Timmins West by the fall of 2008, a 20,000 tonne bulk sample will be collected from a representative suite of mineralization types. This material is planned to be processed on a trial basis at the Bell Creek mine in early 2009 (note that initial metallurgical testing of the Timmins West material has yielded recoveries of over 90%).
The information from this will go towards the completion of an application to a production permit. It is yet unknown, whether Lake Shore will need to complete a feasibility study before going into production. Regardless, we anticipate production to begin by mid-2009, given that gaining the permit should be fairly straightforward. The shaft will be constructed such that it can be easily converted to a production shaft."
The Timmins Gold Camp.
"As in the past, the Timmins-area is a hotbed of activity. Combined, all this activity translates into a ubiquitously tight labour market. That said, we still view Timmins as one of the most attractive mining jurisdictions in Canada. More specifically, not having to construct and operate a remote mining camp and being able to conduct "Tim Horton's exploration" makes for attractive project economics, in our view."
We couldn't agree more!
Thunder Creek - Lake Shore Gold has advised WTM that it intends to launch a Diamond drill program on the Thunder Creek Property during the month of March. WTM controls over 10 kilometres of the prospective volcanic-sedimentary contact within the West Timmins Gold Project along strike from the Timmins West Gold Deposit and the Thunder Creek Property
Timmins West- The advanced timeline for production from the Timmins West Gold Deposit, which is completely surrounded by WTM's 114 square kilometre land position, is very good news as it continues to demonstrate both the rich nature of the Timmins West discovery and the potential of the entire West Timmins District. Lake Shore's drive to production at Timmins West will continue to focus a great deal of attention on the West Timmins District where WTM is the both the dominant landholder and in the midst of a 12,000 metre drill program.
WTM's West Timmins Project��-�WTM continues to aggressively drill test a number of high-priority drill targets on the West Timmins Gold Project which surrounds the Timmins West Deposit. The ongoing program has already led to the discovery on five new zones of gold mineralization in West Timmins. Shareholders can continue to expect regular updates on our progress as results become available over the weeks and months ahead.
WTM - Discovery Opportunities in Mexico and Canada��- In addition to providing our investors unparalleled exposure to the developing West Timmins Gold District WTM is also active in the Sierra Madre Gold Belt located in Northern Mexico. This belt has produced over 40 million ounces of gold and ranks as the richest silver belt in the world.� WTM is actively drilling on its Monta�a de Oro Project located in the heart of the Sierra Madre Gold Belt and anticipates initiating drilling on its Yoquivo Gold-Silver Project, also in the Sierra Madre Belt, within the coming weeks.��
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