Complete star diamond valuation: Increases by 26 percent


    Stock Symbol: SGF: TSX

    SASKATOON, SK, Nov. 5 /CNW/ - George H. Read, P. Geo., Senior Vice
President Exploration & Development, is pleased to announce that modeled
prices ranging between US$97 and US$300 per carat have been determined for the
diamond populations of the major kimberlite lithologies that make up the Star
Kimberlite. These modeled prices were determined by WWW International Diamond
Consultants Limited (WWW) who together with their aboriginal partners ADG
through Diamonds International Canada (DICAN), are the valuators to the
Federal Government of Canada for the Canadian diamond mines in the NWT and
Nunavut. All price figures are expressed in US dollars.
    This valuation was determined on underground diamond parcels totaling
10,309.07 carats, which includes a 4,359.19 carat parcel of newly valued
goods, in addition to formerly valued parcels weighing 5,949.88 carats to
which October 2007 diamond prices have been applied. This 10,309.07 carat
parcel is currently valued at $1,084,443 which gives an average actual price
of $105 per carat. The actual price is the price ($/carat) at which these
valued goods would currently sell in a diamond trading centre such as Antwerp,
    Underground bulk sampling and pattern core drilling have identified five
principal kimberlite lithologies within the Star Kimberlite: Cantuar, Pense,
Early Joli Fou (EJF), Mid Joli Fou (MJF) and Late Joli Fou (LJF). Diamond
parcels representative of these individual lithologies have been valued to
determine modeled diamond prices that will be used in the Mineral Reserve
calculation for the Star Kimberlite. MJF and LJF diamonds were combined during
original mining due to the small sample size. The results are as follows:

                             Actual    Model    Minimum     High   Percentage
    Kimberlite               Price     Price     Price     Price   Carats of
    Lithology       Carats ($/carat) ($/carat) ($/carat) ($/carat) Deposit(2)
    Cantuar       1,126.32    $166      $300      $241      $383       12
    Pense         1,410.73     $69       $97       $83      $115        9
    EJF           7,123.10     $99      $160      $132      $194       77
    MJF-LJF          80.09     $74       $99       $70      $138        2
    Total      (1)9,740.24    $105      $170      $140      $208      100

    Table Notes

    1.) Diamonds weighing 509.25 carats (mixed EJF-Cantuar material) and
        59.58 carats (surface stockpile clean-up) have not been included in
        the diamond populations used for the determination of these modeled
        prices to ensure the integrity of the parcels and the accuracy of the
        modeled prices. This explains the difference between this total of
        9,740.24 carats and the overall parcel total of 10,309.07 carats.
    2.) These percentages are roughly calculated using the tonnes for each
        lithology defined by the geological model and diamond grades defined
        by the underground bulk samples. These carat percentages are subject
        to change with the estimation of a Mineral Resource for the Star
        Kimberlite, scheduled for the first Quarter of 2008.

    The modeled price is determined using statistical methods to estimate the
average value of diamonds that will be recovered from potential future
production from the Star Kimberlite based on the valuation of the parcels for
each lithology at current diamond prices. The difference between the actual
price and the modeled price results from under sampling of the top end (plus
5 carat) of the diamond size frequency distribution by the current bulk
sample. The Cantuar modeled price of $300 lies between a "minimum" of $241 and
a "high" of $383. While the $241 minimum is a base price below which the
Cantuar price is not expected to fall, the $383 is referred to as a "high" and
not a "maximum" as there is potential to rise above this high price. Diamond
price inevitably rises once production commences due to representative
recovery of the large, high value goods, thus making the "high" value
    The details of the fifteen highest priced diamonds reported by WWW are as

    Kimberlite Lithology     Size (Carats)     Price ($/carat)     Value ($)
    EJF                           6.61              10,040           66,400
    EJF                           5.41               5,390           29,200
    CANTUAR                       4.77               4,730           22,600
    CANTUAR                       7.46               3,790           28,300
    EJF                           4.06               3,680           14,900
    EJF                           3.38               3,120           10,500
    CANTUAR                       3.49               2,720            9,500
    EJF                           2.87               2,310            6,600
    EJF                           8.93               2,110           18,800
    EJF                           2.76               1,960            5,400
    PENSE                         4.46               1,880            8,400
    EJF                           6.53               1,520            9,900
    EJF                          14.81               1,500           22,200
    EJF                           5.69               1,310            7,500
    EJF                           5.23               1,310            6,900

    Richard Wake Walker of WWW International Diamond Consultants, who
participated in all the valuations, states: "As noted at previous valuations,
WWW observed in its report that the Shore Gold samples are commercially very
attractive. They are characterised by well-formed models with relatively few
broken pieces. In the better quality diamonds there were both rounded
dodecahedrons as well as fine shaped crystals. There were relatively few dark
yellow or dark brown diamonds and also very little boart. The quantity of
clean, well shaped sawables in the smaller sizes was surprisingly high.
Although the overall colour is not as high as in some other Canadian
productions, the number of stones larger than 10 carats in the Cantuar sample
was remarkable."
    Senior Vice President Exploration & Development, George Read, states:
"Shore is very pleased with these strong modeled diamond prices, particularly
for the EJF and Cantuar, which will be applied to the Star Mineral Reserve
estimate which is scheduled to be determined in mid 2008. The overall modeled
price estimate of $170 per carat has the potential to place Star as one of the
world's top five kimberlite diamond mines when rated on price. These modeled
diamond prices will have a highly positive effect on the future economics of
the Star Diamond Project. The increase over previous valuations is explained
by a combination of a more statistically robust sample (some 10,000 carats)
and rising large rough diamond prices. It is important to remember that the
Star underground bulk sample only represents one or two days of potential
production from a future mine. The high modeled price of $300 per carat for
the Cantuar diamond population is driven by the very high proportion of large
goods (8 percent of carats above 10.8 carats) and the high-end white
octahedral stones present in the parcel. The Company acknowledges the hard
work of its employees, consultants and contractors that has led to these
significant valuation numbers."

    The diamond valuation procedure in Antwerp was supervised and monitored
by Senior Vice President Exploration & Development, George Read, Professional
Geoscientist in the Provinces of Saskatchewan and British Columbia and Ashley
Drobot, Geoscientist in Training in the Province of Saskatchewan. 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.
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: Kenneth E. MacNeill, President & C.E.O., George
H. Read, P. Geo., Senior Vice President Exploration & Development or Pieter Du
Plessis, Vice President Exploration at (306) 664-2202

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