Fort a la Corne Joint Venture: Orion North K120 Kimberlite large diameter drilling diamond grade results



    Stock Symbol: SGF: TSX

    SASKATOON, May 19 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development, is pleased to announce the diamond grade results
for the large diameter drilling ("LDD") mini-bulk sampling of the K120 portion
of the Orion North Kimberlite ("ON-K120") within the Fort a la Corne Joint
Venture ("FALC-JV": 60 percent Shore Gold Inc. ("Shore") and 40 percent
Newmont Mining Corporation of Canada Limited ("Newmont")). ON-K120 is the
northwest portion of the cluster of kimberlites that make up Orion North. The
results for each principal kimberlite unit sampled by the LDD mini-bulk
sampling are shown in Table 1.

    
    Table 1. Diamond Results from LDD Mini-bulk Samples

    -------------------------------------------------------------------------
                                                                     Largest
    Kimberlite  Number Kimberlite Processed  Total   Total   Grade    Stone
    Unit       of Holes  Metres  Dry Tonnes  Carats  Stones  (cpht)  (Carats)
    -------------------------------------------------------------------------
    Cantuar        1        5         6       0.3      3       5       0.24
    -------------------------------------------------------------------------
    EJF Inner     10      1,293     1,730     255    2,632    15       7.53
    -------------------------------------------------------------------------
    EJF Outer      6       619       768       41     746      5       0.97
    -------------------------------------------------------------------------
    LJF            3       108       164        1      29    0.04      0.08
    -------------------------------------------------------------------------
    Total          -      2,025     2,668     297    3,410    11
    -------------------------------------------------------------------------

    Table Notes

    -   Kimberlite Units: EJF: Early Joli Fou and LJF: Late Joli Fou
    -   EJF Inner and Outer based on geology and discussed below
    

    The ON-K120 Kimberlite is one of the largest diamond bearing kimberlites
in the world, with a surface area totaling some 102 hectares situated within
claims of the FALC-JV. The largest operating diamond mine is Orapa in Botswana
and the mined AK1 kimberlite has an area 103 hectares. A resource estimate has
not yet been determined for the ON-K120 Kimberlite but kimberlite tonnage
estimates, which are conceptual in nature, were published in the SGF News
Release of November 21, 2006. No underground bulk sampling has been undertaken
to date in Orion North. It is Shore's assertion that diamond loss and diamond
breakage occur (particularly of the large stones) in the case of the LDD
mini-bulk samples. In addition, on-site testing has shown that diamond
breakage increases as kimberlite competency (hardness) increases. Therefore,
Shore believes both the diamond grade ("cpht") and average price ($/carat) are
underestimated for the LDD mini-bulk samples.
    Shore contends that the simplest method of diamond grade determination
for the LDD mini-bulk samples, which accounts for diamond breakage and loss,
is the use of the processed tonnes, as opposed to the theoretical tonnes
(calculated from callipered hole volumes and density measurements). This has
been confirmed to Shore's satisfaction by the LDD diamond grade reconciliation
with UG grade for the Star Kimberlite that was recently presented in SGF News
Release of April 21, 2009. A more detailed discussion of these methods is
available in the technical presentation "Large Diameter Drilling Grade
Adjustment Factors for Resource Estimation in FALC Kimberlites", which is
available on the Company website at: www.shoregold.com.
    The EJF Inner and Outer Kimberlite Units have been identified by Shore
based on detailed kimberlite geology recorded from core logging of the pattern
drill program and diamond size data derived from LDD. Core logging information
is combined with whole rock geochemistry data, geophysical and density
measurements to identify the constituent kimberlite lithologies within ON-K120
and their volcanological features that form the ON-K120 Kimberlite crater. The
EJF Inner Kimberlite Unit represents coarser grained EJF kimberlite and the
EJF Outer Kimberlite Unit includes finer grained EJF kimberlite. LDD mini-bulk
samples have shown that higher grades and larger diamonds are found within the
EJF Inner Kimberlite Unit. A map is available on the Shore website
(www.shoregold.com) that indicates the EJF Inner Kimberlite Unit and the drill
hole (core and LDD) positions in ON-K120. The EJF grade in the EJF Inner area
in ON-K120 compares favourably with the grade of the EJF Inner areas in the
Star Kimberlite and Orion South.
    Senior Vice President Exploration and Development, George Read, states:
"These results show that the best grade (15 cpht) and the four largest
diamonds (7.53 carat - white, 3.84 carat - grey, 3.28 carat grey and 2.80
carat - white) have been recovered from the EJF Inner Kimberlite Unit, which
is the dominant unit within ON-K120. Early core drilling strongly suggested
that the EJF Inner of ON-K120 was prospective for diamonds due to the
abundance of eclogite xenoliths and coarse kimberlite texture. The ON-K120 EJF
Inner is an extensive, relatively homogenous kimberlite unit that extends from
the kimberlite-till interface to depths of more than 350 metres below surface.
The extent and vertical continuity of the EJF Inner will facilitate potential
future mining."
    Newmont did not participate in the preparation, supervision or review of
the work associated with this exercise and takes no responsibility for the
content or information included in this press release.
    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,
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 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.
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 and www.shoregold.com


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