Trading Symbol: TSXV: HGM
NEWS RELEASE
February 17, 2004 – Holmer gold Mines Limited (HGM-TSXV) reported today the fourth set of assay results for drill holes TG03-35b and TG03-42 from the Timmins Gold Project, now under option to Lake Shore Gold Corp.
Dr. Sethu Raman, President of Holmer Gold, said: “Drill results to date show that the high grade gold zone could be substantially larger than previously estimated. High potential Ultramafic and Footwall Zones appear to converge with increasing gold prices and width. Drilling continues to significantly expand the resource base. Our ongoing resource review could set the stage for the project to quickly move toward development”.
Hole TG03-35b is a wedge hole located updip from hole TG03-35a (see News Release dated January 8, 2004). Hole TG03-35b cut two intersections: one in the Footwall Zone that assayed 11.80 grams gold per tonne over 15.5 metres ( 0.35 oz/ton over 50.8 ft )and one in the Ultramafic Zone that assayed 15.1 grams gold per tonne over 9.5 metres (or 20.6 grams gold per tonne over 9.5 metres uncut or 0.61 oz/ton over 30.1 ft ). Hole TG03-42 is a 250 metre step out on section 4900E positioned to intersect the down plunge projection of the No. 3 Vein and Footwall Zones. Two mineralized zones were cut in hole TG03-42 including 9.93 grams gold per tonne over 3.0 metres and 12.02 grams gold coins per tonne over 0.85 metres.
Hole TG03-35b confirms the grade and width of both the Footwall and Ultramafic Zones drilled on sections 4650E and 4710E. These new intercepts are expected to have a significant impact on the current gold sovereign resource expansion program.
| Hole No. | Section | From (metres) |
To (metres) |
Length (metres) |
*Gold (cut) (grams per tonne) |
Gold (uncut) (grams per tonne) |
Zone |
| TG03-35b | 4650E | 696.00 | 711.50 | 15.50 | 11.80 | 11.80 | Footwall |
| incl. 702.00 | 711.50 | 9.50 | 17.05 | 17.05 | |||
| 734.50 | 744.00 | 9.50 | 15.10 | 20.60 | Ultramafic | ||
| incl. 736.25 | 744.00 | 7.75 | 19.10 | 25.05 | |||
| TG03-42 | 4900E | 488.00 | 491.00 | 3.00 | 9.93 | 9.93 | No. 3 Vein |
| 543.65 | 544.50 | 0.85 | 12.02 | 12.02 | Footwall |
* (All assays cut to 50 grams gold per tonne)
Summary of 2003 Resource Expansion Drilling
The 2003 sovereign resource expansion program has resulted in 27 new intersections that meet the minimum criteria of 6 grams gold per tonne over 1.2 metres for inclusion in the indicated resource as calculated by Watts, Griffis and McOuat Limited in 2002. These intercepts are tabulated in the following table. The drill intersections in the Footwall and Ultramafic Zones on sections 4650E and 4710E have an average grade (cut to 50 grams gold per tonne) of 10.0 grams gold per tonne over an average width of 9.3 metres. New intersections on sections 4875E to 4925E average 9.4 grams gold krugerrand per tonne over 7.8 metres. A new resource figure for the Timmins Gold Property is expected in the second quarter of 2004. Resource expansion drilling is ongoing with three drills on sections 4650E, 4750E and 4875E.
Current resource expansion drilling is focused on the Footwall and Ultramafic Zones, both of which have shown persistent strength of grade and width with depth. The Hanging Wall, Vein and southern Ultramafic Zones remain open.
| Hole No. | Section | From (metres) |
To (metres) |
Length (metres) |
Gold grade (cut to 50 grams) (grams per tonne) |
Zone |
| TG03-35 | 4650E | 703.00 | 706.35 | 3.35 | 6.10 | Footwall |
| 744.00 | 758.00 | 14.00 | 6.10 | Ultramafic | ||
| TG03-35a | 4650E | 687.30 | 708.80 | 21.50 | 6.90 | Footwall |
| 733.50 | 755.30 | 21.80 | 7.00 | Ultramafic | ||
| TG03-35b | 4650E | 696.00 | 711.50 | 15.50 | 11.80 | Footwall |
| 734.50 | 744.00 | 9.50 | 15.10 | Ultramafic | ||
| TG03-03 | 4700E | 689.50 | 703.60 | 14.10 | 9.80 | Footwall |
| 710.90 | 719.70 | 8.80 | 10.70 | Ultramafic | ||
| TG03-04 | 4700E | 566.27 | 269.20 | 2.93 | 22.40 | Footwall |
| 576.50 | 583.20/td> | 6.70 | 10.00 | Ultramafic | ||
| TG97-50a | 4700E | 745.30 | 747.90 | 2.60 | 7.90 | Footwall |
| 760.40 | 764.20 | 3.80 | 12.60 | Ultramafic | ||
| 937.70 | 939.20 | 1.50 | 9.80 | Lower Ultramafic | ||
| TG97-50b | 4700E | 746.30 | 751.60 | 5.30 | 7.40 | Footwall |
| 891.85 | 900.50 | 8.65 | 6.50 | Ultramafic | ||
| TG03-04a | 4700E | 420.30 | 421.80 | 1.50 | 38.50 | Main |
| TG03-04b | 4700E | 420.90 | 422.30 | 1.40 | 22.80 | Main |
| TG03-11 | 4825E | 404.68 | 406.75 | 2.07 | 7.40 | No. 2 Vein |
| TG03-01 | 4875E | 546.10 | 547.93 | 1.83 | 6.20 | Footwall |
| 551.71 | 559.86 | 8.15 | 6.30 | Footwall | ||
| 561.64 | 563.62 | 1.98 | 6.30 | Footwall | ||
| TG03-02 | 4925E | 365.25 | 369.20 | 3.95 | 9.70 | No. 2 Vein |
| TG03-39 | 4900E | 498.50 | 500.15 | 1.65 | 13.60 | Footwall |
| 521.00 | 524.60 | 3.60 | 7.20 | Footwall | ||
| TG03-42 | 4900E | 488.00 | 491.00 | 3.00 | 9.93 | No. 3 Vein |
| TG03-41 | 4925E | 524.50 | 538.50 | 14.00 | 6.10 | Footwall |
| TG03-37 | 4875E | 521.50 | 529.50 | 8.00 | 13.40 | Footwall |
In addition to the above, an independent review to determine an inferred resource estimate for the open pit potential, as reported in the News Release dated December 3, 2003, has been commissioned and this estimate will be reported when finalized.
Lake Shore Gold has implemented a quality-control program to ensure best practice in the sampling and analysis. The program is supervised by Jacques Samson (P.Geo), the Qualified Person.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release