Stock Symbol: SGF: TSX
SASKATOON, Jan. 6 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development, announces that, as a consequence of the current
state of the world financial and diamond markets, Shore has approved a
significantly reduced 2009 budget of $17.9 million, which includes $2.5
million for Star, $1.0 million for Star West and $9.5 million for the Fort a
la Corne Joint Venture (FALC-JV). The budget enables Shore to focus on the
completion of the prefeasibility study and the delivery of a National
Instrument 43-101 compliant reserve estimate for the Star Diamond Project
during 2009. Shore anticipates the delivery of a full bankable feasibility
study on Star by the first quarter of 2010. On the FALC-JV (Shore 60 percent,
Newmont 40 percent) large diameter drilling (LDD) currently underway will be
completed in late January and underground bulk sampling will terminate at the
end of January. It is anticipated that the combined underground bulk sampling
and LDD will yield a diamond parcel sufficient for the initial NI 43-101
resource estimate on the Orion South Kimberlite, within the FALC-JV. Newmont
has elected not to participate in the 2009 FALC-JV budget beyond the
completion of the LDD in late January.
This reduced 2009 budget combined with Shore's current cash position and
an agreement in principle for a credit facility against the Company's
investment in asset backed commercial paper (ABCP) will ensure the Company's
financial stability through 2010, when a production decision is anticipated.
The limited underground and the completion of the LDD sampling on Orion
South together with the tightly constrained 2009 budget, necessitates a
considerable staff reduction on-site. The budget enables Shore to maintain a
core group of personnel who will be instrumental in moving the Star Diamond
Project to a production decision by the first quarter of 2010 and concurrently
preparing the initial resource estimate for Orion South.
Senior Vice President Exploration and Development, George Read, states:
"In the current uncertain financial markets, Shore believes it is important
that we carefully manage our cash position while moving our projects toward a
production decision in line with the schedule defined by the Star - Orion
South Project Proposal (SGF News Release November 3, 2008). We are convinced
that the 2009 budget enables us to make significant progress towards a
production decision on Star while simultaneously estimating a resource on
Orion South. This approach unfortunately comes at the expense of a
considerable reduction in the size of our staff. Many alternative work
programs have been exhaustively considered prior to making this decision. The
Shore management acknowledges the hard work, diligence and loyalty of our
staff, consultants and contractors that have enabled us to evaluate these
kimberlites to date."
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
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, Manager, Investor Relations at
(306) 667-3505, Website: www.shoregold.com