Fort a la Corne Joint Venture: Initial Orion North LDD Diamond results 3.00, 2.86, 2.59 and 1.88 carat diamonds in 100 carat parcel



    Stock Symbol: SGF: TSX

    SASKATOON, April 3 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development, is pleased to announce the first set of diamond
results for the Orion North Kimberlite sampled in the first 9 holes of a 20
hole large diameter drill (LDD) program. This LDD program forms part of the
evaluation of the Orion Kimberlite Cluster within the Fort a la Corne Joint
Venture (FALC-JV), where Shore Gold Inc. (Shore) is the Operator with a 60
percent interest and Newmont Mining Corporation of Canada Limited (Newmont)
has a 40 percent interest. The purpose of the LDD program is to provide a
preliminary indication of the presence of macrodiamonds in Orion North.
Fifteen of the 20 LDD holes target deep intersections of kimberlite within the
147-148-220 kimberlite complex that forms the eastern part of Orion North.
Five Early Joli Fou (EJF2, EJF3a, EJF3b, EJF3c and EJF4) time equivalent
kimberlites have been identified in the detailed logging of the surface core
drilling that preceded these LDD holes. These five EJF kimberlite lithologies
dominate the intersections in these LDD holes. Diamond recoveries and grade
calculations are individually listed for each of these five EJF lithologies.
The remaining five holes are centred on the 120 kimberlite in the northwestern
part of Orion North. This 20 hole LDD program on Orion North has been
completed on the 2nd of April 2007.
    Diamonds totaling 100.03 carats were recovered from the processing of
3,403.65 dry tonnes of kimberlite from the 9 LDD holes reported. The total
diamond recoveries from the kimberlite intersected in each LDD hole are listed
in Table 1 and the information per lithology in Table 2. The grade range
listed in Table 1 shows the range of diamond grades (in cpht) for individual
samples collected at various levels, throughout the kimberlite intersection,
down each LDD hole. Samples are taken every 10 metres down each LDD hole.
These LDD results show that in holes LDD-148-06-001, LDD-148-06-003,
LDD-147-06-004 and LDD-147-06-003 there are 10 metre kimberlite sample
intersections with grades of between 17 and 22 carats per hundred tonnes at
depths of 188 to 209 metres. Ninety-nine percent of these diamonds are
commercial stones greater than 1.18 millimetre (1,091 diamonds weighing 99.25
carats) with the balance of the goods (49 diamonds weighing 0.77 carats)
falling in the +0.85-1.16 millimetre size fraction. The four largest stones
are: 3.00 carat grey from 148-06-001, 2.86 carat off white from 147-06-004,
2.59 carat white from 148-06-003 and a 1.88 carat off white from 147-06-003.
Nine diamonds exceed one carat of which 2 are white, 4 are off white and 3 are
grey. The colour of 34 percent of the diamonds has been classified as white,
with a further 27 percent classified as off-white.

    
    Table 1: Diamond Recoveries, Grade (carats per hundred tonnes), Grade
    Range and Stones per Tonne for each LDD Hole
    -------------------------------------------------------------------------
                                                                      Stones
                  Kimberlite Sampled  Total  Total Grade  Grade Range   Per
    LDD Hole No.   Lithology  Tonnes Carats Stones (cpht)  (cpht)      Tonne
    -------------------------------------------------------------------------
    LDD-148-06-001  EJF-3a    111.56   6.47    41   5.80  1.28-18.79   0.37
    -------------------------------------------------------------------------
    LDD-148-06-003  EJF-3a    156.87   9.18    60   5.85  0.43-17.57   0.38
    -------------------------------------------------------------------------
    LDD-147-06-004  EJF-3b    101.36   8.30    81   8.19  3.47-17.35   0.80
    -------------------------------------------------------------------------
    LDD-147-06-003  EJF-3b    102.59   8.04   100   7.84  2.76-22.15   0.97
    -------------------------------------------------------------------------
    LDD-147-06-002  EJF-3b     56.76   3.73    25   6.58   6.42-6.73   0.44
    -------------------------------------------------------------------------
    LDD-147-06-005  EJF-3b    104.71   5.90    82   5.64   4.81-8.63   0.78
    -------------------------------------------------------------------------
    LDD-148-06-002  EJF-3c     66.40   0.54    10   0.81   0.63-1.01   0.15
    -------------------------------------------------------------------------
    LDD-147-06-005  EJF-3c    189.89   3.76    52   1.98    0.42-3.6   0.27
    -------------------------------------------------------------------------
    LDD-148-06-002  EJF-3c    424.66   6.66    89   1.57   0.00-8.18   0.21
    -------------------------------------------------------------------------
    LDD-148-06-001  EJF-3c    270.87   2.59    38   0.96   0.10-2.77   0.14
    -------------------------------------------------------------------------
    LDD-148-06-003  EJF-3c    360.65   7.19    73   1.99   0.00-4.63   0.20
    -------------------------------------------------------------------------
    LDD-147-06-003  EJF-4     254.46  10.41    84   4.09   0.70-7.33   0.33
    -------------------------------------------------------------------------
    LDD-147-06-002  EJF-4     207.35   4.52    55   2.18   0.11-4.83   0.27
    -------------------------------------------------------------------------
    LDD-147-06-001  EJF-4     351.03   6.02    90   1.71   0.58-5.18   0.26
    -------------------------------------------------------------------------
    LDD-147-06-006  EJF-4     327.73   7.34   113   2.24   1.08-3.83   0.34
    -------------------------------------------------------------------------
    LDD-147-06-004  EJF-4     251.28   6.73   117   2.68   1.58-3.41   0.47
    -------------------------------------------------------------------------
    LDD-147-06-002  EJF-2      65.51   2.65    30   4.04   3.04-5.22   0.46
    -------------------------------------------------------------------------
    TOTAL                   3,403.65 100.03 1,140   2.94   0 - 22.15   0.33
    -------------------------------------------------------------------------


    Table 2: Diamond Recoveries, Grade (carats per hundred tonnes), Grade
    Range and Stones per Tonne for each lithology
    -------------------------------------------------------------------------
                                                                      Stones
                             Sampled  Total  Total Grade  Grade Range   Per
    LDD Hole No.              Tonnes Carats Stones (cpht)  (cpht)      Tonne
    -------------------------------------------------------------------------
    EJF-3a Total              268.42  15.64   101   5.83  0.43-18.79   0.38
    -------------------------------------------------------------------------
    EJF-3b Total              365.41  25.98   288   7.11  2.76-22.15   0.79
    -------------------------------------------------------------------------
    EJF-3c Total             1312.47  20.74   262   1.58   0.00-8.18   0.20
    -------------------------------------------------------------------------
    EJF-4 Total              1391.84  35.01   459   2.52   0.11-7.33   0.33
    -------------------------------------------------------------------------
    EJF-2 Total                65.51   2.65    30   4.04   3.04-5.22   0.46
    -------------------------------------------------------------------------
    

    Senior Vice President Exploration and Development, George Read, states:
"These initial LDD results confirm the presence of macrodiamonds (greater than
1.0 millimetre) within the eastern part of Orion North. These preliminary
results for Orion North also suggests the presence of significant macrodiamond
grades at depth in Orion North, which are similar to the initial results from
the first 24 inch LDD hole drilled approximately 30 metres from the shaft in
the Star Kimberlite during 2001. This limited, widely spaced and small samples
from the LDD in the five different EJF age kimberlite lithologies provides an
early indication of the presence of macrodiamonds in Orion North. Diamond
results from the remaining six LDD holes on the 147-148-220 kimberlite complex
of Orion North and the five LDD holes on Kimberlite 120 will be published as
soon as they are available."
    LDD holes (1.2 metre diameter) are drilled using two Bauer BG36 drill
rigs, which use Kelly-bar drilling for the till and mudstone overburden and
switch to reverse circulation drilling when kimberlite is intersected. The LDD
holes are drilled on the same grid as the PQ (75 millimetres) core drilling
and the LDD holes are sited within three metres of an existing core hole that
has been logged in detail. The subsurface geology of the LDD holes is known
from the core drilling and detailed logging and this information is used to
define the downhole sample breaks for the LDD. Hole volumes are accurately
determined using a caliper and the volume to mass conversion is completed
using on-site bulk kimberlite density measurements determined using the water
immersion method (average bulk density: 2.25 grams per cubic centimetre).
These bulk density measurements are correlated with specific gravity
measurements determined by SGS Lakefield Research on the adjacent kimberlite
core.
    The diamond recovery procedure includes on-site processing of kimberlite
through the modular Dense Media Separator (DMS), after which DMS concentrates
are batch fed through an X-ray Flow-sort. In order to ensure the recovery of
low luminosity diamonds, the Flow-sort tailings are processed over a grease
table. Flow-sort and grease table concentrates are transported by a secure
carrier to SGS Lakefield Research in Ontario for final diamond recovery. The
SGS Lakefield Research process includes drying, screening, magnetic
separation, manual sorting and diamond weighing and description. SGS Lakefield
Research is accredited to the ISO/IEC 17025 standard by the Standards Council
of Canada as a testing laboratory for specific tests.
    The evaluation of the Orion Kimberlite Cluster within the FALC-JV, with a
budget of approximately $66.5 million, is now the largest work program
outlined for any of the Fort a la Corne kimberlites. 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: Adam Buchanan, Manager, Investor and Community
Relations at (306) 667-3503


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