TORONTO (miningweekly.com) – Timmins gold camp-focused Lake Shore Gold this week reported record second-quarter output, recording a 70% year-on-year rise in gold production during the three months ended June 30.

The Toronto-based miner, which owns three multimillion-ounce gold complexes in the century-old Timmins gold camp, in Northern Ontario, produced 52 300 oz of gold, placing it on track to achieve the top end of its production guidance of between 160 000 oz and 180 000 oz of gold this year.

The consolidated mill throughput averaged 309 800 t for the period at an average grade of 5.4 g/t, with average mill recoveries of 96.6%.

The company on Thursday said it had poured and sold some 53 500 oz of gold during the quarter at an average selling price of $1 289/oz. This compared with 27 600 oz sold in the same quarter last year at an average price of $1 409/oz.

Lake Shore also reported record output during the first half of the year at 96 900 oz, a 79% rise from the first half of last year.

"We are very pleased with our operating results in the first half of 2014, which include production, throughput and average grades all meeting or exceeding expected levels," president and CEO Tony Makuch said.

He added that the company’s strong performance had generated significant free cash flow during the year, with cash and bullion rising to about $53-million at the end of the second quarter. The company also repaid about $17-million of debt so far this year, including a $10-million prepayment on its standby line of credit with Sprott Resource early last month.

"Supported by our growing financial strength, we have resumed drilling at our mines to grow reserves and resources and extend mine life. We are also advancing work at a number of our key growth projects and will soon start drilling at our 144 property, a very exciting exploration target located adjacent to our Thunder Creek deposit,” Makuch explained.

Lake Shore’s TSX-listed stock on Friday rose to a new one-year high, having more than tripled in value in the past 12 months. The stock was trading at C$1.11 apiece on Friday afternoon.

The company plans to release its second-quarter financial results before the market opens on July 31.