Fort a la Corne Joint Venture: Orion North LDD diamond results identify two areas of high interest



    7.53, 6.89, 3.00, 2.86 and 2.80 carat diamonds in parcels totaling
    318.98 carats

    Stock Symbol: SGF: TSX

    SASKATOON, June 7 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development, is pleased to announce that all diamond results
for the 20 hole large diameter drill (LDD) program on the Orion North
Kimberlite have been received and these results suggest two zones of high
interest within Orion North. 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 was to provide a preliminary
indication of the presence of macrodiamonds and locate units of high interest
within Orion North. This LDD method of sampling provides an indication of the
presence of macrodiamonds but does not necessarily give the true grade of
these relatively low grade, large tonnage kimberlites. The true grade of Fort
a la Corne kimberlites can only be accurately estimated through a large
underground bulk sampling exercise, such as has been completed on the Star
Diamond Project.
    Five LDD holes are centred on the Kimberlite 120 in the northwestern part
of Orion North. Kimberlite 120 is predominantly composed of a massive
pyroclastic, Early Joli Fou (EJF) time equivalent kimberlite, named EJF-1,
that contains large olivine macrocrysts (up to 4 centimetres) and abundant
eclogite xenoliths. Detailed core logging and whole rock geochemistry suggest
that Kimberlite 120 is relatively homogeneous from the till-kimberlite
interface downwards. As a consequence of this relative homogeneity, Kimberlite
120 has higher grade units in close proximity to the base of the overburden
and, therefore, a potentially low stripping ratio compared to other FALC
district opportunities, depending on the ultimate deposit size.
    The remaining fifteen LDD holes target deep intersections of kimberlite
within the 147-148 Kimberlite Complex that forms the eastern part of Orion
North. Six Early Joli Fou (EJF-2, EJF-3a, EJF-3b, EJF-3c, EJF-4 and EJF-5)
time equivalent kimberlites have been identified in the detailed logging of
the surface core drilling that preceded these LDD holes. The diamond results
from the lithologies within the two areas of high interest (Kimberlite 120 and
the 147-148 Kimberlite Complex) are discussed separately. These two areas and
the grades derived from the LDD samples are also illustrated on a map on the
Shore website: www.shoregold.com.

    Kimberlite 120

    Diamonds totaling 155.92 carats were recovered from the processing of
2,068.01 dry tonnes of kimberlite from the 5 LDD holes reported. The total
diamond recoveries from the kimberlite intersected in each LDD hole are listed
in Table 1 and the drill intersects 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. Kimberlite samples are collected over 10 metres down each LDD hole.
Kimberlite with elevated grade has been encountered at various depths
particularly in LDD holes 120-07-004 and 120-07-005 and examples of specific
samples are listed in Table 3. Ninety-nine percent of these diamonds are
commercial stones greater than 1.18 millimetre (1,359 diamonds weighing
154.98 carats) with the balance of the goods (54 diamonds weighing 0.94
carats) falling in the +0.85-1.16 millimetre size fraction. The four largest
stones are: 7.53 carat white from 120-07-005, 2.80 carat white from
120-07-004, 2.63 carat white from 120-07-005 and a 2.26 carat off-white from
120-07-004. Eleven diamonds exceed one carat of which 8 are white, 1 is
off-white and 2 are grey. The colour of 65 percent of the diamonds has been
classified as white, with a further 20 percent classified as off-white. The
7.53 carat white stone has a fresh breakage surface and is estimated to have
been roughly 9 carats in size prior to breakage.

    
    Table 1: Kimberlite 120 Diamond Recoveries, Grade (carats per hundred
    tonnes), Grade Range and Stones per Tonne for each LDD Hole

    -------------------------------------------------------------------------
                                                              Grade   Stones
                  Kimberlite Sampled  Total   Total  Grade    Range     Per
    LDD Hole No.  Lithology  Tonnes  Carats  Stones  (cpht)   (cpht)   Tonne
    -------------------------------------------------------------------------
    LDD-120-07-001  EJF-1    376.44   13.09    156   3.48   0.6 - 6.33   0.41
    -------------------------------------------------------------------------
    LDD-120-07-002  EJF-1    331.05   14.67    173   4.43  0.92 - 14.07  0.52
    -------------------------------------------------------------------------
    LDD-120-07-003  EJF-1    364.82   18.84    174   5.16  1.85 - 13.65  0.48
    -------------------------------------------------------------------------
    LDD-120-07-004  EJF-1    446.85   45.38    382  10.15   1.9 - 22.98  0.85
    -------------------------------------------------------------------------
    LDD-120-07-005  EJF-1    548.86   63.94    528  11.65  3.76 - 37.45  0.96
    -------------------------------------------------------------------------
        TOTAL              2,068.01  155.92  1,413   7.54   0.6 - 37.45  0.68
    -------------------------------------------------------------------------


    Table 2: Kimberlite 120 lithology intersects and largest stone for each
    lithology

    -------------------------------------------------------------------------
                                                                     Largest
                     Kimberlite   Depth From   Depth To   Interval    Stone
    LDD Hole No.     Lithology     (metres)    (metres)   (metres)   (carats)
    -------------------------------------------------------------------------
    LDD-120-07-001     EJF-1        104.94      236.40     131.46      0.46
    -------------------------------------------------------------------------
    LDD-120-07-002     EJF-1        115.64      237.05     121.41      1.02
    -------------------------------------------------------------------------
    LDD-120-07-003     EJF-1        114.28      252.00     137.72      1.39
    -------------------------------------------------------------------------
    LDD-120-07-004     EJF-1        104.60      269.70     165.10      2.80
    -------------------------------------------------------------------------
    LDD-120-07-005     EJF-1        105.06      291.71     186.65      7.53
    -------------------------------------------------------------------------
        TOTAL                                              742.34
    -------------------------------------------------------------------------


    Table 3: Kimberlite 120 depth intersects and associated elevated grades

    -------------------------------------------------------------------------
                     Kimberlite   Depth From   Depth To   Interval    Grade
    LDD Hole No.     Lithology     (metres)    (metres)   (metres)    (cpht)
    -------------------------------------------------------------------------
    LDD-120-07-004     EJF-1        104.60      110.95       6.35     19.56
    -------------------------------------------------------------------------
    LDD-120-07-004     EJF-1        142.00      153.40      11.40     14.90
    -------------------------------------------------------------------------
    LDD-120-07-004     EJF-1        173.50      184.00      10.50     19.48
    -------------------------------------------------------------------------
    LDD-120-07-004     EJF-1        184.00      194.50      10.50     22.98
    -------------------------------------------------------------------------
    LDD-120-07-004     EJF-1        214.85      225.40      10.55     17.50
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    LDD-120-07-005     EJF-1        105.06      118.87      13.81     20.24
    -------------------------------------------------------------------------
    LDD-120-07-005     EJF-1        130.69      141.35      10.66     15.08
    -------------------------------------------------------------------------
    LDD-120-07-005     EJF-1        171.65      181.87      10.22     19.06
    -------------------------------------------------------------------------
    LDD-120-07-005     EJF-1        262.75      272.35       9.60     37.45
    -------------------------------------------------------------------------
    LDD-120-07-005     EJF-1        272.35      283.07      10.72     15.88
    -------------------------------------------------------------------------

    147-148 Kimberlite Complex

    Diamonds totaling 51.04 carats were recovered from the processing of
953.97 dry tonnes of kimberlite from the 11 LDD holes that intersected the
kimberlite lithologies of highest interest (EFJ-2, EJF-3a and EJF-3b). The
total diamond recoveries from the kimberlite intersected in each LDD hole from
each of these lithologies of interest are listed in Table 4 and the drill
intersects in Table 5. The grade range listed in Table 4 shows the range of
diamond grades (in cpht) for individual samples collected at various levels,
throughout the specific kimberlite lithology, down each LDD hole. Kimberlite
samples are collected over approximately 10 metres down each LDD hole.
Kimberlite with elevated grade has been encountered at various depths
particularly in LDD holes 147-06-003, 147-06-004, 148-06-001 and 148-06-003
and examples of specific samples are listed in Table 6. Ninety-nine percent of
these diamonds are commercial stones greater than 1.18 millimetre
(493 diamonds weighing 50.80 carats) with the balance of the goods (15
diamonds weighing 0.24 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 "other" from 147-06-004, 2.59 carat white from 148-06-003 and a 1.23
carat "other" from 147-06-002. Six diamonds exceed one carat of which 1 is
white, 3 are "other" and 2 are grey. The colour of 32 percent of the diamonds
has been classified as white, with a further 29 percent classified as
off-white.

    Table 4: 147-148 Kimberlite Complex Diamond Recoveries, Grade (carats per
    hundred tonnes), Grade Range and Stones per Tonne for each LDD Hole

    -------------------------------------------------------------------------
                                                              Grade   Stones
                  Kimberlite Sampled  Total   Total  Grade    Range     Per
    LDD Hole No.  Lithology  Tonnes  Carats  Stones  (cpht)   (cpht)   Tonne
    -------------------------------------------------------------------------
    LDD-147-06-002  EJF-3b   122.27   6.38     55    5.22  3.04 - 6.73   0.45
    -------------------------------------------------------------------------
    LDD-147-06-003  EJF-3b   102.59   8.04    100    7.84  2.76 - 22.15  0.97
    -------------------------------------------------------------------------
    LDD-147-06-004  EJF-3b   101.36   8.30     81    8.19  3.47 - 17.35  0.80
    -------------------------------------------------------------------------
    LDD-147-06-005  EJF-3b   104.71   5.90     82    5.64  3.98 - 8.63   0.78
    -------------------------------------------------------------------------
    LDD-148-06-001  EJF-3a   111.56   6.47     41    5.80  1.28 - 18.79  0.37
    -------------------------------------------------------------------------
    LDD-148-06-002  EJF-3a    66.40   0.54     10    0.81  0.63 - 1.01   0.15
    -------------------------------------------------------------------------
    LDD-148-06-003  EJF-3a   156.87   9.18     60    5.85  0.43 - 17.57  0.38
    -------------------------------------------------------------------------
    LDD-148-06-004  EJF-3a    36.09   1.31     18    3.63  2.11 - 4.89   0.50
    -------------------------------------------------------------------------
    LDD-148-06-005  EJF-3b    98.65   2.49     37    2.53  1.54 - 4.39   0.38
    -------------------------------------------------------------------------
    LDD-148-07-006  EJF-2     24.58   1.66     12    6.76      6.76      0.49
    -------------------------------------------------------------------------
    LDD-148-07-008  EJF-2     28.90   0.78     12    2.68      2.68      0.42
    -------------------------------------------------------------------------
        TOTAL                953.97  51.04    508    5.35  0.43 - 22.15  0.53
    -------------------------------------------------------------------------


    Table 5: 147-148 Kimberlite Complex lithology intersects and largest
    stone for each lithology

    -------------------------------------------------------------------------
                                                                     Largest
                     Kimberlite   Depth From   Depth To   Interval    Stone
    LDD Hole No.     Lithology     (metres)    (metres)   (metres)   (carats)
    -------------------------------------------------------------------------
    LDD-147-06-002    EJF-2&3b      165.95      209.60      43.65      1.24
    -------------------------------------------------------------------------
    LDD-147-06-003     EJF-3b       189.60      226.70      37.10      1.20
    -------------------------------------------------------------------------
    LDD-147-06-004     EJF-3b       173.00      206.50      33.50      2.86
    -------------------------------------------------------------------------
    LDD-147-06-005     EJF-3b       156.80      195.00      38.20      0.72
    -------------------------------------------------------------------------
    LDD-148-06-001     EJF-3a       188.72      227.92      39.20      3.00
    -------------------------------------------------------------------------
    LDD-148-06-002     EJF-3a       221.70      246.20      24.50      0.19
    -------------------------------------------------------------------------
    LDD-148-06-003     EJF-3a       192.28      248.81      56.53      2.59
    -------------------------------------------------------------------------
    LDD-148-06-004     EJF-3a       180.30      194.16      13.86      0.26
    -------------------------------------------------------------------------
    LDD-148-06-005     EJF-3b       144.48      181.65      37.17      0.23
    -------------------------------------------------------------------------
    LDD-148-07-006     EJF-2        193.90      203.00       9.10      0.49
    -------------------------------------------------------------------------
    LDD-148-07-008     EJF-2        192.60      205.80      13.20      0.21
    -------------------------------------------------------------------------
        TOTAL                                              346.01
    -------------------------------------------------------------------------


    Table 6: 147-148 Kimberlite Complex depth intersects and associated
    elevated grades

    -------------------------------------------------------------------------
                     Kimberlite   Depth From   Depth To   Interval    Grade
    LDD Hole No.     Lithology     (metres)    (metres)   (metres)    (cpht)
    -------------------------------------------------------------------------
    LDD-147-06-003     EJF-3b       189.60      194.80       5.20     22.15
    -------------------------------------------------------------------------
    LDD-147-06-004     EJF-3b       195.85      206.50      10.65     17.35
    -------------------------------------------------------------------------
    LDD-148-06-001     EJF-3a       188.72      196.76       8.04     18.79
    -------------------------------------------------------------------------
    LDD-148-06-003     EJF-3a       199.79      209.00       9.21     17.57
    -------------------------------------------------------------------------

    Total Orion North Results

    Diamonds totaling 318.98 carats were recovered from the processing of
7301.36 dry tonnes of kimberlite from the 20 LDD holes drilled in Orion North
(Table 7). Kimberlite lithologies EJF-1, EJF-2, EJF-3a and EJF-3b are
considered to be units of highest interest at present, justifying further work
which could lead to bulk sampling. It is noteworthy however that a 6.89 carat
white stone was recovered from Kimberlite lithology EJF-4 and there remains
upside potential in EJF-3c, EJF-4 and EJF-5.

    Table 7: Total Orion North LDD Results

    -------------------------------------------------------------------------
                                                 Stones    Grade     Largest
    Kimberlite  Sampled   Total   Total   Grade    Per     Range      Stone
    Lithology   Tonnes   Carats  Stones  (cpht)   Tonne    (cpht)    (carats)
    -------------------------------------------------------------------------
    EJF-1      2,068.01  155.92   1413    7.54    0.68   0.6 to 37.45   7.53
    -------------------------------------------------------------------------
    EJF-2        118.98    5.08     54    4.27    0.45  2.68 to 6.76    0.49
    -------------------------------------------------------------------------
    EJF-3a       370.92   17.49    129    4.72    0.35  0.43 to 18.79   3.00
    -------------------------------------------------------------------------
    EJF-3b       464.06   28.47    325    6.14    0.70  1.54 to 22.15   2.86
    -------------------------------------------------------------------------
    EJF-3c     1,492.85   25.96    326    1.74    0.22     0 to 8.18    1.14
    -------------------------------------------------------------------------
    EJF-4      2,712.58   84.81    957    3.13    0.35     0 to 27.32   6.89
    -------------------------------------------------------------------------
    EJF-5         73.95    1.25     24    1.69    0.32  0.39 to 2.26    0.17
    -------------------------------------------------------------------------
    TOTAL      7,301.36  318.98   3228    4.37    0.44     0 to 37.45
    -------------------------------------------------------------------------
    

    Diamond Size Frequency

    Shore Gold Inc. geologists performed diamond size frequency analysis on
the Orion North LDD macrodiamond data as a comparison with the available Star
Kimberlite LDD macrodiamond size frequency data. The EJF-1 diamond size
frequency distribution from the 120 Kimberlite is similar to the diamond size
frequency distribution from the Star Kimberlite LDD. The three units of
highest interest in the 147-148 Kimberlite, namely EJF-2, EJF-3a and EJF-3b,
have similar, to slightly coarser diamond size frequency distributions
compared to the LDD from the Star Kimberlite. Units EJF-3c, EJF-4 and EJF-5
have finer diamond size frequency distributions than the LDD from the Star
Kimberlite.
    Senior Vice President Exploration and Development, George Read, states:
"These LDD results indicate two areas within Orion North of high interest and
these areas are located over Kimberlite 120 and the central part of the
147-148 Kimberlite Complex. The large diamonds recovered from small samples,
coarse diamond size frequency distribution, elevated grades, some of which are
from kimberlite in direct contact with the glacial overburden, the significant
volume of relatively homogeneous kimberlite and the potentially low stripping
ratio support the next phase of exploration on Kimberlite 120, which may
include additional LDD holes to justify bulk sampling. Early stage estimates
suggest that Kimberlite 120 contains approximately 185 to 194 million tonnes
of diamond bearing kimberlite within the area of high interest. In addition,
kimberlite lithologies of high interest have been identified within the core
zone of the 147-148 Kimberlite Complex. Additional work is warranted to
further investigate the economic potential of these 147-148 kimberlite
lithologies. The 147-148 Kimberlite Complex area is similar to the Star
Kimberlite in that the units of high interest occur at depth, overlain by
apparent lower grade kimberlite. The total tonnage of potential economic
kimberlite defined in the Fort a la Corne area to date, which justifies
additional, more advanced work, consists of approximately 220 million tonnes
from the Star Kimberlite (bulk sampling complete), approximately 330 million
tonnes from the Orion South Kimberlite and now significant tonnage from the
Orion North Kimberlite. These estimates are conceptual in nature, do not
represent Mineral Resource estimates and future work may not necessarily lead
to the definition of Mineral Resources on the above mentioned kimberlites."
    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 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.





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