Fort a la Corne Joint Venture - Orion South geological model updated - EJF tonnage increases 20 percent



    Stock Symbol: SGF: TSX

    Saskatoon, Oct. 21 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development, is pleased to announce an update of the Orion
South (OS) geological model that has resulted in a significant tonnage
increase for the Early Joli Fou (EJF) Kimberlite, the EJF being the target
lithology for diamonds in OS, 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 update results from the recent integration
of 2008 core drilling results into the OS geological model.
    In 2008 a total of 17 PQ (75 millimetres) additional core holes were
drilled in OS by Encore Coring and Drilling of Calgary. During this program
4,636 metres of core drilling was completed on OS, which included 2,181 metres
of kimberlite. Shore geologists were responsible for detailed core logging,
cross section preparation and the compilation of all the logging and section
information into the three dimensional (3-D) geological model. The total OS
tonnage and the tonnages estimated for each of the kimberlite lithologies
within OS have been recalculated and, while the total estimated tonnage has
decreased to between 333 and 375 million tonnes, the EJF tonnage estimate has
increased to between 210 and 234 million tonnes. The previous tonnage estimate
on OS was announced in the SGF News Release in March 2007. The revised OS
tonnage estimate and supporting drilling information is listed in the
following Table 1 and the revised 2008 tonnage estimates for each kimberlite
lithology are listed in Table 2.

    
    Table 1.
    -------------------------------------------------------------------------
                 Estimated Tonnage              Total Kimberlite    Maximum
    Kimberlite        Range           Number of    Intersected    Kimberlite
    Complex    (Millions of Tonnes)   Drillholes     (metres)       (metres)
    -------------------------------------------------------------------------
    Orion South       333-375             129         14,800           339
    -------------------------------------------------------------------------

    Table 2.
    -------------------------------------------------------------------------
                          2007 Estimated             2008 Revised Estimated
    Kimberlite             Tonnage Range                  Tonnage Range
    Lithology          (Millions of Tonnes)           (Millions of Tonnes)
    -------------------------------------------------------------------------
    Viking                      15-17                          15-19
    -------------------------------------------------------------------------
    LJF                         49-54                          28-31
    -------------------------------------------------------------------------
    EJF                       176-196                        210-234
    -------------------------------------------------------------------------
    Pense                     112-124                          75-84
    -------------------------------------------------------------------------
    Cantuar                       8-9                            5-7
    -------------------------------------------------------------------------
    Total                     360-400                        333-375
    -------------------------------------------------------------------------
    

    This OS tonnage estimate is conceptual in nature and is an estimate of
the kimberlite within OS based on the drilling information presently available
to the Company. The tonnage estimate is expressed as a range of values to
emphasize that, with more detailed pattern drilling of OS, 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. 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 Orion South
Kimberlite. At least three feeder vents in OS are open at depths below
445 metres.
    The EJF Kimberlite is the primary target for bulk sampling within OS and
significant volumes of EJF are located over feeder vents in the northwest and
southeast of OS - see three dimensional representation of the lower surface of
the EJF available at www.shoregold.com. The OS shaft was sunk approximately
midway between these EJF vents in order to efficiently and cost effectively
access EJF in the northwestern and southeastern parts of OS, from a single
shaft. As noted in SGF News Releases of February 5 and March 4, 2008, the EJF
intervals intersected by the upper part of the shaft show grades in the range
of 13 to 20 cpht as anticipated by Shore for the EJF of OS. The lower part of
the OS shaft (below 150 metres from surface) and the station at 186 metres are
located in fine grained, ash-rich Pense volcaniclastic kimberlite which has
low diamond grade (2 to 4 cpht as shown in SGF News Release of May 21, 2008)
and forms the upper part of the cinder cone of the original kimberlite
volcano. Diamond results of this Pense material will be published in a
separate news release. Some 90 metres of lateral drift development has been
completed in this low grade Pense material in order to access the target EJF
Kimberlite to the southeast of the shaft. This is illustrated in the OS
cross-section available on www.shoregold.com. Drift development is now
underway in the EJF to the south of the shaft. Diamond results from the drift
development and the Large Diameter Drilling program at OS started in early
2008 will be published when they become available. Pattern core drilling has
encountered coarse grained Pense Kimberlite at deeper levels below the cinder
cone and it is anticipated that elevated grades will be associated with the
coarse Pense material.
    Senior Vice President Exploration and Development, George Read, states:
"Detailed pattern core drilling of OS has resulted in a more accurate
definition of the constituent kimberlite lithologies and a 20 percent increase
in the tonnage of the EJF, which is the principal target lithology for diamond
sampling in OS. Shore's current work continues to confirm the potential of OS
within the FALC-JV. OS has a stratigraphy that is more amenable to mining, in
that significant tonnage of the target EJF occurs in direct contact with the
overlying glacial sediments. This would lower the stripping ratio of a
potential open pit operation. Underground drift development is now active on
three headings, which should result in the recovery of substantial tonnages of
EJF material to assess the diamond grade and price."
    All core (historic core, 2006 and 2008 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. Kimberlite lithologies within Orion South have been identified
using a combination of detailed core logging, whole rock geochemistry,
downhole geophysics and density measurements.

    Senior Vice President Exploration and Development, George Read,
Professional Geoscientist in the Provinces of Saskatchewan and British
Columbia, is Shore's 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,
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"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 other development plans contain forward-looking
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    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
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differ materially from the beliefs, plans, objectives, expectations,
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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,
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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.
Unless otherwise required by applicable securities legislation, 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: Joseph Dickson, Investor Relations Manager at
(306) 667-3505


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