Star Diamond Project large diameter drilling diamond grade reconciliation



    Stock Symbol: SGF: TSX

    SASKATOON, April 21 /CNW/ - George H. Read, P. Geo., Senior Vice
President Exploration and Development, is pleased to announce the
reconciliation of diamond grade results for the large diameter drilling
("LDD") mini-bulk sampling with the underground ("UG") bulk sampling. The
reconciliation of LDD to UG results is necessary to incorporate the fact that
diamond breakage and diamond loss occurs when sampling using LDD. The results
for each principal kimberlite unit sampled by the LDD mini-bulk sampling and
UG bulk sampling methods are shown in Tables 1 and 2, respectively.

    
    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       25        391        613      102     661     17     24.86
    -------------------------------------------------------------------------
    Pense         16        365        553       88     986     16      6.43
    -------------------------------------------------------------------------
    EJF Inner     64      3,509      5,261      954   9,869     18     11.95
    -------------------------------------------------------------------------
    EJF Outer     29      1,110      1,658      178   2,969     11      1.87
    -------------------------------------------------------------------------
    MJF           21        837      1,288       67   1,039      5      3.17
    -------------------------------------------------------------------------
    LJF           56        761        893       11     225      1      0.62
    -------------------------------------------------------------------------
    Total          -      6,973     10,266    1,400  15,749     14         -
    -------------------------------------------------------------------------


    Table 2. Diamond Results from UG Bulk Samples

    -------------------------------------------------------------------------
                                                                     Largest
    Kimberlite                      Processed  Total   Total  Grade    Stone
    Unit                           Dry Tonnes Carats  Stones  (cpht) (Carats)
    -------------------------------------------------------------------------
    Cantuar        -          -      9,139    1,633   9,479     18     49.50
    -------------------------------------------------------------------------
    Pense          -          -     11,024    1,403  13,529     13     14.63
    -------------------------------------------------------------------------
    EJF Inner      -          -     38,892    6,814  51,639     18     19.70
    -------------------------------------------------------------------------
    EJF Outer      -          -          -        -       -      -         -
    -------------------------------------------------------------------------
    MJF            -          -      4,908      335   3,215      7      5.76
    -------------------------------------------------------------------------
    LJF            -          -        675       14     309      2      0.46
    -------------------------------------------------------------------------
    Total          -          -     64,638   10,199  78,171     16         -
    -------------------------------------------------------------------------

    Table Notes

    -   Kimberlite Units: EJF: Early Joli Fou, MJF: Mid Joli Fou and LJF:
        Late Joli Fou
    -   EJF Inner and Outer based on geology and discussed below
    -   No UG bulk sampling occurred within EJF Outer
    

    The Star Kimberlite is one of the largest diamond bearing kimberlites in
the world, with a surface area totaling some 352 hectares situated within
claims of both the Star Diamond Project (100 percent Shore) and the adjacent
Fort a la Corne Joint Venture (FALC-JV: 60 percent Shore and 40 percent
Newmont Mining Corporation of Canada Limited). A combination of UG bulk
sampling and LDD mini-bulk sampling is required to rigorously evaluate such a
large kimberlite, which is buried under some 100 metres of glacial overburden.
The UG bulk samples provide accurate diamond grade and size distribution data
which are considered representative of the area sampled for assessing the
potential for future mining. However, economic and logistical parameters
prohibit the collection of UG bulk samples across the entire kimberlite,
hence, the necessity for the use of a combination of UG sampling and LDD.
While the large (greater than 10,000 tonne) UG bulk samples are representative
of the diamond population, 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, both the diamond grade
("cpht") and average price ($/carat) are underestimated for the LDD mini-bulk
samples.
    The Shore technical team analyzed the LDD and UG diamond data in detail
and determined a number of methods by which these two sets of diamond data can
be reconciled and factored. These reconciliation factors have been calculated
both by an independent qualified person as part of the Star resource update
(Technical Report and Resource Estimate Update on the Star Diamond Project,
Fort a la Corne Area, Saskatchewan, Canada. March 26, 2009 - see
www.shoregold.com or www.sedar.com) and in-house, using the difference between
size frequency distributions of the UG and LDD diamond populations. This
method produces factors that range from 1.62 to 1.67 that are applied to the
LDD grades to calculate the actual grade. It has also been determined that the
easiest method of diamond grade determination for the LDD mini-bulk samples is
the use of the processed tonnes, as opposed to the theoretical tonnes
(calculated from callipered hole volumes and density measurements). This
method produces a factor of 1.70 between the diamond grade derived from the
processed tonnes and the grade derived from the theoretical tonnes. 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 are 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 Star and their volcanological
features that form the Star Kimberlite crater. The EJF Inner Kimberlite Unit
represents coarser grained EJF kimberlite that occurs within the volcanic
cinder cone and the EJF Outer Kimberlite Unit includes finer grained EJF
kimberlite that lies on and outside the cinder cone. UG bulk and LDD mini-bulk
samples have shown that higher grades and larger diamonds are found within the
EJF Inner Kimberlite Unit. The UG bulk sampling was carried out entirely
within the EJF Inner Kimberlite Unit and is deemed representative of this
unit.
    Senior Vice President Exploration and Development, George Read, states:
"The accurate reconciliation of LDD mini-bulk sampling diamond results to UG
bulk sampling diamond results is a pivotal step in the understanding and
evaluation of the large, buried kimberlites of the Fort a la Corne area. The
key understanding of the relationship between processed and theoretical tonnes
for LDD samples enables grade reconciliation factors to be determined for the
Fort a la Corne kimberlites when only LDD mini-bulk samples are available. Now
that this key understanding has been developed on the Star Kimberlite, it
provides Shore with a powerful sampling tool which can be effectively used to
evaluate the grade of other FALC kimberlites without the necessity of the more
expensive UG bulk sampling programs required on Star.
    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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Shore Gold Inc.

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