Fort a la Corne joint venture: Orion North K147 and K148 large diameter drilling diamond grade results



    Stock Symbol: SGF: TSX

    SASKATOON, June 16 /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 K147 and
K148 portions of the Orion North Kimberlite ("ON-K147/K148") 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")). The
relative positions of ON-K147 and ON-K148 and drill hole locations are
illustrated on a map available on the Company website: www.shoregold.com. The
results for each principal kimberlite unit sampled by the LDD mini-bulk
sampling are shown in Table 1.

    
    Table 1 ON-K147 and ON-K148 Diamond Results from LDD Mini-bulk Samples

    -------------------------------------------------------------------------
                  Number             Processed                       Largest
    Kimberlite      of    Kimberlite    Dry    Total   Total   Grade   Stone
    Unit           Holes    Metres    Tonnes  Carats  Stones  (cpht) (Carats)
    -------------------------------------------------------------------------
    147 EJF Inner    2        247       247     30      315     12      1.88
    -------------------------------------------------------------------------
    147 EJF Outer    4        467       527     41      571      8      2.86
    -------------------------------------------------------------------------
    148 EJF Inner    5        606       841     65      605      8      6.89
    -------------------------------------------------------------------------
    148 EJF Outer    4        495       669     35      469      5      1.62
    -------------------------------------------------------------------------
    Total                   1,815     2,284    171    1,960      8
    -------------------------------------------------------------------------

    Table Notes

    -   Kimberlite Units: EJF: Early Joli Fou and LJF: Late Joli Fou
    -   EJF Inner and Outer based on geology and discussed below
    -   Diamonds reported with a 1.18 millimetre square mesh screen bottom
        cut-off
    -   Grade is calculated as Total Carats divided by Processed Dry Tonnes
    

    The ON-K147 and K148 Kimberlites together form one of the largest diamond
bearing kimberlites in the world, with a combined surface area totaling some
394 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-K147/K148
Kimberlites but kimberlite tonnage estimates, which are conceptual in nature,
were published in SGF News Releases of November 21 and 24, 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" - calculated as Total Carats divided by Theoretical
Tonnes) 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-K147
/K148 and their volcanological features that form the ON-K147/K148 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.
    Senior Vice President Exploration and Development, George Read, states:
"This early summary of LDD results for the target EJF kimberlite units within
ON-K147/K148 shows that large volumes of diamond bearing kimberlite exist
within Orion North and that these units require more detailed evaluation. The
presence of the 6.89 carat stone in this limited sampling exercise is a
positive sign for the diamond size frequency distribution of ON-K147/K148."
    LDD samples were processed through the on-site DMS plant and final
diamond recovery was completed by SGS Lakefield on Flowsort X-ray and grease
table concentrates.
    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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