Fort a la Corne Joint Venture - Orion South geological estimate: 360-400 million tonnes of kimberlite



    Stock Symbol: SGF: TSX

    SASKATOON, March 2 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development, is pleased to announce an updated tonnage
estimate of 360 to 400 million tonnes of kimberlite for Orion South (140 and
141), which forms the southern part of the Orion Kimberlite Cluster within the
Fort a la Corne Joint Venture (FALC-JV: Shore 60 percent, Newmont 40 percent).
This Orion South tonnage estimate is conceptual in nature and is an estimate
of the kimberlite within Orion South based on the drilling information
presently available to the Company. This tonnage estimate results from
collaborative work between geologists of Shore Gold Inc. (Shore) and Newmont
Mining Corporation of Canada Limited (Newmont). Shore geologists were
responsible for detailed core logging and cross section preparation and
geological interpretation, while Newmont geologists compiled all the logging
and section information into a three dimensional (3-D) geological model using
Newmont's proprietary in-house software. The tonnage estimate is expressed as
a range of values to emphasize that, with more intense pattern drilling of
Orion South, the present tonnage estimate could change. At this stage there
has been insufficient exploration to define a mineral resource on this
property and it is uncertain if further exploration will result in the
property being delineated as a mineral resource. The estimated range of
tonnage of Orion South kimberlite is listed in the following table.

    
    -------------------------------------------------------------------------
    Kimberlite        Estimated    Number of       Total          Maximum
    Complex            Tonnage     Drillholes    Kimberlite     Kimberlite
                        Range                    Intersected     Intersect
                      (Millions                   (metres)       (metres)
                      of Tonnes)
    -------------------------------------------------------------------------
    Orion South        360-400        112          12,300           339
    -------------------------------------------------------------------------
    

    This geological estimate considers all kimberlite to a depth of
445 metres below surface and assumes an average kimberlite density of
2.25 grams per cubic centimetre, which is the average density for the Star
Kimberlite. At least three feeder vents in Orion South are open at depths
below 445 metres.
    All core (historic core and 2006 pattern drilling) used in the
preparation of the 3-D geological model has been logged according to the
quantitative core logging methods developed by Shore and used on the Star
Kimberlite. The 2006 pattern PQ (75 millimetres) core drilling program, as
reported in Shore News Release October 30, 2006, significantly added to the
kimberlite tonnage estimated for Orion South. Kimberlite lithologies within
Orion South have been identified using a combination of detailed core logging,
whole rock geochemistry, downhole geophysics and density measurements. Recent
interpretation of seismic data by the Targeted Geoscience Initiative of the
Geological Survey of Canada has assisted in the definition of the geometry of
kimberlite lithological boundaries. Detailed logging has shown that kimberlite
units similar in age to the Cantuar, Pense, Early Joli Fou (EJF) and Late Joli
Fou (LJF), found in the Star Kimberlite, also occur in Orion South. Repetitive
pyroclastic kimberlite (PK) and kimberlite breccia (KB) units, similar to
those mapped and sampled within the Star Kimberlite, occur in the EJF of Orion
South. Some late stage kimberlite that is stratigraphically equivalent to
Viking sediments is mapped at high levels in Orion South. The estimated
tonnage ranges of each of these kimberlite lithologies are listed in the
following table.

    
    -------------------------------------------------------------------------
    Kimberlite Lithology        Estimated Tonnage Range (Millions of Tonnes)
    -------------------------------------------------------------------------
    Viking                                       15-17
    -------------------------------------------------------------------------
    LJF                                          49-54
    -------------------------------------------------------------------------
    EJF                                         176-196
    -------------------------------------------------------------------------
    Pense                                       112-124
    -------------------------------------------------------------------------
    Cantuar                                       8-9
    -------------------------------------------------------------------------
    Total                                       360-400
    -------------------------------------------------------------------------
    

    Senior Vice President Exploration and Development, George Read, states:
"This tonnage estimate for Orion South is not a mineral resource or reserve
estimate but is an important milestone in the continued exploration of these
very large diamondiferous kimberlites within the FALC-JV. Shore and Newmont
geologists have integrated significant information from some 12,300 metres of
kimberlite intersected in 112 drillholes to build this geological model for
Orion South. This Orion South tonnage estimate shows that the Cantuar, Pense
and EJF kimberlites account for more than 80 percent of the tonnage of Orion
South. These units will be targeted for future bulk sampling with a shaft and
underground development. This tonnage estimate is substantially larger than
the original Orion South estimate (134 million tonnes) published by Kensington
Resources Limited in the news release of September 28, 2004, mainly due to the
tonnage contribution of the 2006 core drilling. This Orion South tonnage
estimate of 360 to 400 million tonnes is in addition to the 800 to 870 million
tonnes already defined for Orion North (Shore News Release November 24, 2006).
The tonnage estimate for Orion Central is still to be determined."
    In early November, Shore and Newmont Mining Corporation of Canada Limited
(Newmont) approved a 2006Q4/2007 budget of $66.5 million for the aggressive
exploration of the FALC-JV. This budget will be funded 60 percent by Shore
through Kensington Resources Ltd. (the Operator) and 40 percent by Newmont
(see Shore News Release November 8, 2006).
    Senior Vice President Exploration and Development, George Read,
Professional Geoscientist in the Provinces of Saskatchewan and British
Columbia, is the Qualified Person responsible for the verification and quality
assurance of analytical results. Shore is a Canadian based corporation engaged
in the acquisition, exploration and development of mineral properties. Shares
of the Company trade on the TSX Exchange under the trading symbol "SGF".

    Caution Regarding Forward-Looking Statements

    From time to time, Shore makes written or oral forward-looking statements
within the meaning of certain securities laws, including the "safe harbour"
provisions of the Ontario Securities Act and the United States Private
Securities Litigation Reform Act of 1995. Shore may make such statements in
this press release, in other filings with Canadian regulators or the United
States Securities and Exchange Commission, in reports to shareholders or in
other communications. These forward-looking statements include, among others,
statements with respect to Shore's objectives for the ensuing year, our medium
and long-term goals, and strategies to achieve those objectives and goals, as
well as statements with respect to our beliefs, plans, objectives,
expectations, anticipations, estimates and intentions. The words "may,"
"could," "should," "would," "suspect," "outlook," "believe," "plan,"
"anticipate," "estimate," "expect," "intend," and words and expressions of
similar import are intended to identify forward-looking statements. In
particular, statements regarding Shore's future operations, future exploration
and development activities or the anticipated results of Shore's
pre-feasibility study or other development plans contain forward-looking
statements.
    All forward-looking statements and information are based on Shore's
current beliefs as well as assumptions made by and information currently
available to Shore concerning anticipated financial performance, business
prospects, strategies, regulatory developments, development plans,
exploration, development and mining activities and commitments. Although
management considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
    By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks exist that
predictions, forecasts, projections and other forward-looking statements will
not be achieved. We caution readers not to place undue reliance on these
statements as a number of important factors could cause the actual results to
differ materially from the beliefs, plans, objectives, expectations,
anticipations, estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to, developments in
world diamond markets, changes in diamond valuations, risks relating to
fluctuations in the Canadian dollar and other currencies relative to the US
dollar, changes in exploration, development or mining plans due to exploration
results and changing budget priorities of Shore or its joint venture partners;
the effects of competition in the markets in which Shore operates; the impact
of changes in the laws and regulations regulating mining exploration and
development; judicial or regulatory judgments and legal proceedings;
operational and infrastructure risks and the additional risks described in
Shore's most recently filed Annual Information Form, annual and interim MD&A
and short form prospectus, and Shore's anticipation of and success in managing
the foregoing risks.
    Shore cautions that the foregoing list of factors that may affect future
results is not exhaustive. When relying on our forward-looking statements to
make decisions with respect to Shore, investors and others should carefully
consider the foregoing factors and other uncertainties and potential events.
Shore does not undertake to update any forward-looking statement, whether
written or oral, that may be made from time to time by Shore or on our behalf.




For further information:

For further information: Wade D. MacBain, Corporate Communications
Manager, at (306) 667-3503


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