Fort a La Corne Joint Venture: Orion South diamond results 15.88, 8.29, 4.46 and 2.76 carat diamonds in 266 carat parcel

    Stock Symbol: SGF: TSX

    SASKATOON, SK, March 4 /CNW/ - George H. Read, P. Geo., Senior Vice
President Exploration and Development, is pleased to announce the second set
of diamond results from underground bulk sampling of the Orion South
Kimberlite, within the Fort a 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
266.02 carats from 1,540.07 dry tonnes of kimberlite processed. Included in
this release are results for 4 kimberlite batches. A total of 1,722 commercial
sized diamonds (greater than 1.18 millimetre square mesh screen), collectively
weighing 265.83 carats, has been recovered from these 4 batches. Twenty
diamonds greater than one carat have been recovered and the four largest
stones are: 15.88, 8.29, 4.46 and 2.76 carats, respectively. In addition, ten
diamonds totaling 0.19 carats were recovered down to 0.85 millimetre square
mesh. The colour of 50 percent of the diamonds has been classified as white,
with a further 10 percent classified as off-white.
    The well constrained geological model on Orion South enabled the sinking
of the shaft in a central location to ensure ease of future underground access
to the north and south of the shaft to sample the Early Joli Fou 1 and 2 (EJF1
and EJF2) and Pense Kimberlite lithologies. The pilot PQ (75 millimetres) core
hole (141-07-081C) that preceded the shaft was drilled to a depth of
241 metres below surface and the geologic sequence logged from this hole is:
0-102 metres glacial overburden, 102-105 metres Late Joli Fou Kimberlite,
105-147 metres Early Joli Fou Kimberlite and 147-241 metres Pense Kimberlite.
The lithology of these four kimberlite batches is consistent with the pilot
hole and a map of the shaft geology is available on the Shore website at: Kimberlite processed and diamond results for the 4 sample
batches are listed in the following table.

                 Location                Number                      Largest
    Batch      Depth below        Dry      of       Total    Grade    Stone
     No.     Surface (metres)   Tonnes   Stones   (carats)   (cpht)  (carats)
    OS-005   Shaft 5: 116.6 -
              123.4 metres      289.78    248      39.55     13.65      2.76
    OS-006   Shaft 6: 123.4 -
              132.5 metres      392.98    514      71.65     18.23      2.74
    OS-007   Shaft 7: 132.5 -
              139.1 metres      372.19    439      71.64     19.25     15.88
    OS-008   Shaft 8: 139.1 -
              148.6 metres      485.12    531      83.18     17.15      8.29
    Total                     1,540.07  1,732     266.02     17.27

    The four largest stones are 15.88, 8.29, 4.46 and 2.76 carats
respectively. Nine diamonds exceed two carats and 20 diamonds exceed one
carat, of which 9 are white, 5 are off white, 4 are grey, one is brown, and
one is black. A total of 86 diamonds exceed 0.5 carats. Fifty percent of this
diamond parcel is classified white in colour, with a further 10 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.
    Senior Vice President Exploration and Development, George Read, states:
"This second set of bulk samples from the Orion South shaft continues the
elevated grades seen in the first two batches (OS-003: 20.43 cpht and OS-004:
16.62 cpht) of EJF kimberlite. Batch OS-008 is at the lower contact of the EJF
with the Pense. Existing LDD results suggest that the Pense will have a lower
grade than the EJF but the EJF is the dominant lithology in Orion South,
accounting for more than 60 percent of the total rock volume. The 15.88 carat
diamond from batch OS-007 is the largest diamond recovered to date from any of
the kimberlites within the FALC-JV and supersedes the 10.53 carat light fancy
yellow stone recovered from a LDD sample in 2005. This 15.88 carat diamond is
a freshly broken fragment that is white in colour and has some graphite
inclusions. The break suggests that this stone came from a considerably larger
diamond. The recovery of these large stones at this early stage of sampling of
Orion South is evidence of the coarse size frequency distribution of the Orion
South diamond population, inferred originally from LDD diamond results. It is
important to compare these EJF underground bulk sampling results with existing
LDD results for Orion South EJF. To date, some 1,949 tonnes of EJF kimberlite
have been recovered from 28 LDD holes in Orion South and these LDD samples
indicate an average grade of 10 cpht for the EJF with a 10.53 carat diamond as
the largest stone. The EJF bulk samples from the shaft (2,029 tonnes) indicate
an average grade of 17.57 cpht and the largest stone is 15.88 carats.
    Analysis of underground and LDD results from the Star Kimberlite suggests
that the LDD method usually underestimates the actual grade of the material
being sampled and; as such, the grade from the LDD method needs to be factored
upwards to reconcile the LDD grades with those realized from underground bulk
sampling. The grade underestimation by the LDD is believed to be a function of
diamond breakage, particularly of the larger stones, and an under-recovery of
some diamonds that may remain in the hole at the end of drilling. The aim of
this shaft sinking exercise is the recovery of substantial, representative
diamond parcels, from each of the Orion South kimberlite lithologies, for
diamond grade and price determinations. In addition to shaft sinking on Orion
South, large diameter drilling is currently underway on the K120 Kimberlite
that forms part of Orion North and the second rig has recently returned to
Orion South."
    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,"
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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
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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: Adam Buchanan, Manager, Investor and Community
Relations at (306) 667-3503

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