LAKE SHORE GOLD CORP. Building an Energy Management Culture New - PowerPoint PPT Presentation

LAKE SHORE GOLD CORP. Building an Energy Management Culture New Leader in Precious Metals

Tahoe Resources Inc. Tahoe Resources Inc . is a publicly traded company led by experienced mining professionals who are dedicated to the responsible production of precious metals in the Americas. In our quest to develop and operate world- class mines, we are dedicated to maximizing shareholder value while working to the highest standards of environmental stewardship, community engagement and employee health and safety As a new leader in precious metals, we operate the Escobal silver mine in Guatemala, the La Arena and Shahuindo gold mines in Peru and the Timmins West and Bell Creek gold mines in Canada. New Leader in Precious Metals 2

Tahoe Canada – Timmins West Mine Timmins West Complex is located 18km West of Timmins, Ontario near junction of highways 101 and 144 Two Main Deposits: Timmins Deposit and Thunder Creek Deposit. Deposits are 800m apart, connected via two drifts underground Mine Production  2,700 tonnes per day ore  700 to 1,000 tonnes per day waste Ore from Mine is trucked approx. 42kms to Bell Creek Mill for processing 24/7 and 365 days per year. New Leader in Precious Metals 3

Tahoe Canada – Bell Creek Mine Bell Creek Mine is an underground mine located 20 kms northeast of Timmins Lake Shore Gold acquired Bell Creek Mine and Mill in December 2007 from Porcupine Joint Venture (Goldcorp and Kinross) Mine is currently in midst of a $80M shaft expansion New Leader in Precious Metals 4

Tahoe Canada – Bell Creek Mill Bell Creek Mill processes ore from the Timmins West and Bell Creek Mines Conventional gold mill circuit. Processes for gold recovery:  Grinding, Gravity and Leaching  Carbon in Leach (CIL)  Carbon in Pulp (CIP ) Consistently achieve recoveries of over 95% New Leader in Precious Metals 5

Foundation of Energy Program Energy Management Plan Commitment  Action Plan – well thought out  Upper Management Commitment  (Corporate Energy Policy) Align with Corporate Objectives   Dedicated Full-time Energy Manager Milestones/Deliverables   Cross Functional Energy Team KPI Tracking and Reporting • Energy Champion for Each Process  Ownership and Accountability Communication Execution   Site Awareness Program Energy Opportunities   Training/Workshops Best Practices/Technologies   Energy Incentive Program Leverage available funding  Continuous skills development New Leader in Precious Metals 6

Senior Management Support Why it’s required  Individuals can only accomplish so much. Team work will get you further.  Managers can provide the resources required to ensure success • People – EM will not be experts in every area; need to assemble experts on team • Funds – Most companies do not have energy budgets or they are overlooked at the onset of the program. Managers will be allowing EM to use their already strained budgets. How do you get it  Outline your objectives/goals. Short, Medium and Long-term  Show your vision – building an energy culture  Be confident and enthusiastic – believe in your own material  Proof is in the pudding • Cost - show them numbers! Energy is Top 5 • Benefits – Decrease costs or increase production  Speak their language • All in Sustainable Costs (AISC) • $/Tonne or $/oz.  Quick wins – use these to get program off the ground • Turn off lights • Reduce fan speeds  Transparency – tell Managers about resources time commitment New Leader in Precious Metals 7

Roles and Functionality Energy Working Group Energy Management Team  Attend energy meetings  Communicate the Corporate Energy Policy  Advance energy projects  Create a sense of purpose  Opportunity identifications  Set clear expectations  Idea and knowledge sharing  Provide direction  Skills development  Provide Necessary Resources  Workforce engagement  Engage management team/supervisors  M & V for projects  Communicate Success  Quantify costs and savings  Recognition & Rewards  Manage projects and initiatives Energy Manager  Energy Management Plan Owner  Reporting requirements/External Funding Initiatives  Own Opportunity/Energy Project Register  Develop Reporting Metrics  Develop Energy Culture  Promote and Implement Energy Management Initiatives  Assist Team Communications  Energy Tracking (Baseline, Dashboards, etc.)  Rewards & Awareness  Keep Executive Management engaged New Leader in Precious Metals 8

Inspire Symbol/Slogan  Symbolism is very powerful  Allows everyone to immediately know improvement is taking place Energy Rewards Program  Compensate workforce for submitting suggestions for energy conservation  Monthly draws/annual awards  Eligible to all – employees, students, contractors. No senior managers  Departmental Challenges  All suggestions receive written response  SWAG - hats, t-shirts, etc. New Leader in Precious Metals 9

Visibility Internal  Be Visible • Get out and meet the workforce, on the job in their environment • Attend morning huddles, safety meetings, etc.  Communication • Daily, Weekly or Monthly Updates on EMP Progress (TV, Bulletins, etc.)  Highlight Accomplishments • Celebrate successes • Thank workforce for projects and ideas & management for commitment to program External  Praise your team’s effort  Be involved in the Energy Management Community • EM HUB • IESO Training/Webinars New Leader in Precious Metals 10

Final Thoughts Energy Blueprint  Well thought out plan  Set milestones. Short, Medium and Long-term Persistence  Don’t give up  Keep a positive outlook  Patience Speak a common language  Relate energy savings to industry metrics  Not saving MWh, savings $/tonne Leverage Government Programs & Funding  Northern Industrial Electricity Rate Program (Mining)  Industrial Accelerator Program New Leader in Precious Metals 11

Questions New Leader in Precious Metals 12