Fort a la Corne Joint Venture: Orion South diamond results



    
    32.96, 7.23, 5.97, and 3.17 carat diamonds in 519.63 carat parcel

    Stock Symbol: SGF: TSX
    

    SASKATOON, April 28 /CNW/ - George H. Read, P. Geo., Senior Vice
President Exploration and Development, is pleased to announce the eighth, and
final, set of diamond results from underground bulk sampling of the Orion
South (OS) Kimberlite, within the Fort à la Corne Joint Venture (FALC-JV)
where Shore is the operator with a 60 percent interest and Newmont Mining
Corporation of Canada Limited (Newmont) has 40 percent. The diamond recoveries
total 519.63 carats from 2,957.26 dry tonnes of kimberlite processed. Included
in this release are results for fourteen kimberlite batches. A total of 2,573
commercial sized diamonds (greater than 1.18 millimetre square mesh screen),
collectively weighing 519.59 carats, has been recovered from these fourteen
batches. Sixty-four diamonds greater than one carat have been recovered and
the four largest stones are: 32.96, 7.23, 5.97, and 3.17 carats, respectively.
In addition, three diamonds totaling 0.04 carats were recovered down to 0.85
millimetre square mesh. The colour of 38 percent of the diamonds has been
classified as white, with a further 40 percent classified as off-white.
    All batches reported were collected during lateral drifting between 150
and 200 metres from the shaft station at 186 metres below surface. A map of
the underground drifting showing the locations of these batches is available
on the Shore website at: www.shoregold.com. Two kimberlite lithologies have
been sampled by these 14 batches: Batches OS-064 to 73 and the AG (Autogenous
Grinding Mill) Test batch were recovered from Early Joli Fou Kimberlite (EJF)
and Batches OS-062 and OS-074 were recovered from a transitional zone of mixed
EJF and Pense Kimberlite. Kimberlite processed and diamond results for the
fourteen sample batches are listed in the following table.

    
    -------------------------------------------------------------------------
    Batch    Location    Kimberlite    Dry    Number  Total   Grade  Largest
    No.                     Unit      Tonnes    of   (carats) (cpht)  Stone
                                              Stones                 (carats)
    -------------------------------------------------------------------------
    OS-064   South 10A       EJF      239.03    238    36.40   15.23   1.69
    -------------------------------------------------------------------------
    OS-065   South 8A        EJF      273.30    230    43.48   15.91   2.80
    -------------------------------------------------------------------------
    OS-066   South 8B_10B    EJF      287.56    259    44.97   15.64   1.27
    -------------------------------------------------------------------------
    OS-067   Pump Station    EJF      164.40    129    25.30   15.39   1.66
             -001D
    -------------------------------------------------------------------------
    OS-068   Sump Station    EJF      362.46    366    99.67   27.50  32.96
             -001D/E
    -------------------------------------------------------------------------
    OS-069   South 9         EJF       60.81     61     8.96   14.74   1.32
    -------------------------------------------------------------------------
    OS-070A  Sump Station    EJF      143.20    132    30.15   21.06   2.00
              -001C
    -------------------------------------------------------------------------
    OS-070B  Sump Station    EJF      159.38    147    28.60   17.94   1.48
             -001C
    -------------------------------------------------------------------------
    OS-071   Refuge Slash    EJF      187.76    211    37.47   19.96   1.29
    -------------------------------------------------------------------------
    OS-072   South 13        EJF      316.31    294    59.74   18.89   7.23
    -------------------------------------------------------------------------
    OS-073   South 12        EJF      308.90    273    54.93   17.78   2.28
    -------------------------------------------------------------------------
    AG Test  Sump Station    EJF       58.00     43    10.89   18.78   1.95
             -001C
    -------------------------------------------------------------------------
    Total EJF                EJF    2,561.11  2,383   480.56   18.76
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    OS-062   South 6A     Pense/EJF   125.89     60    11.90    9.45   1.35
    -------------------------------------------------------------------------
    OS-074   South 11     Pense/EJF   270.26    130    27.17   10.05   2.78
    -------------------------------------------------------------------------
    Total Transitional    Pense/EJF   396.15    190    39.07    9.86
     Pense/EJF
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    TOTAL                           2,957.26  2,573   519.63   17.57
    -------------------------------------------------------------------------
    

    The four largest stones are 32.96 (Grey), 7.23 (Brown), 5.97 (Off-White)
and 3.17 (Grey) carats respectively. Eleven diamonds exceed two carats and
sixty-four diamonds exceed one carat, of which seventeen are white,
twenty-five are off-white, seven are grey, eight are brown, four are black,
and three are yellow. A total of 223 diamonds exceed 0.5 carats. Thirty-eight
percent of this diamond parcel is classified white in colour, with a further
forty percent classified as off-white. Ninety-nine percent of the carat weight
of this parcel occurs in diamonds greater than 1.18 millimetre square mesh.
    Processing of the OS underground bulk sample has been completed. Diamonds
weighing 2,346.27 carats have been recovered from a total of 23,467.98 dry
tonnes of kimberlite (75 underground batch samples and one AG sample). The
final OS underground bulk sample results, by kimberlite unit, are listed in
the following table.

    
    -------------------------------------------------------------------------
    Kimberlite Unit         Dry Tonnes   Number     Total    Grade   Largest
                                       of Stones   (carats)  (cpht)    Stone
                                                                     (carats)
    -------------------------------------------------------------------------
    LJF                         115.83       90       6.96     6.01     0.38
    -------------------------------------------------------------------------
    EJF                       8,040.90    7,794   1,414.00    17.59    32.96
    -------------------------------------------------------------------------
    Transitional Pense/EJF    3,154.76    2,218     334.85    10.61     3.61
    -------------------------------------------------------------------------
    Pense                    12,046.83    5,116     586.32     4.87    45.95
    -------------------------------------------------------------------------
    Clean-up                    109.66       30       4.14     3.78     1.19
    -------------------------------------------------------------------------
    Total                    23,467.98   15,248   2,346.27    10.00
    -------------------------------------------------------------------------
    

    As with Shore's 100 percent owned Star Diamond Project, the EJF is the
most important kimberlite unit in OS in terms of tonnes and grade. The EJF
grade from the underground bulk sample in OS of approximately 18 cpht compares
favourably with the bulk sample grade of the EJF in the Star Kimberlite of
approximately 18 cpht. The average diamond size of the EJF in the OS bulk
sample is 0.18 carats per stone, while the average diamond size of the EJF in
the Star Kimberlite bulk sample is 0.13 carats per stone meaning that the OS
EJF bulk sample diamonds have a coarser diamond size frequency distribution
than those of the Star Kimberlite EJF bulk sample. Although the EJF
kimberlites in OS and Star may not have a genetic relationship, currently
available datasets suggest otherwise as they are in close proximity to each
other (less than 2 kilometres apart); erupted synchronously in the same marine
depositional environment; contain the same kimberlite geology (intercalated
breccias and pyroclastics); have similar whole rock chemistry; have equivalent
grades; the diamond size frequency distributions are both coarse with OS
slightly coarser; and the diamond populations contain very similar shape
characteristics (proportions of octahedra and macles).
    Senior Vice President Exploration and Development, George Read, states:
"The underground bulk sampling on Orion South has been successfully completed
and these results confirm the overall average grade of the target EJF to be
approximately 18cpht. This underground bulk sampling program has shown
consistency in the grade of the EJF within OS, as similar grades were
encountered in the EJF in upper part of the shaft (104-148 metres) and in the
EJF sampled in lateral drift development on the 186 metre level. These diamond
results will be used in preparing an OS resource estimate, which is
anticipated to be available in mid 2009."
    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 Mineral Services Canada Inc. for final diamond recovery. The
Mineral Services process includes de-greasing, drying, screening, magnetic
separation, manual sorting and diamond weighing and description. The Mineral
Services facility, process and quality assurance procedures have been audited
and ratified by an independent industry expert.

    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.
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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