Fort a La Corne Joint Venture: Orion South diamond results 45.95, 4.92, 4.63 and 3.77 carat diamonds in 288.36 carat parcel

    Stock Symbol: SGF: TSX

    SASKATOON, Oct. 24 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development, is pleased to announce the fourth 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. Kimberlite Batch OS-033 includes a 45.95 carat diamond which
is a fragment of a larger stone and is the largest diamond recovered from the
FALC-JV to date. These 15 kimberlite batches were all recovered from fine
grained, ash-rich Pense volcaniclastic kimberlite which generally has low
diamond grade as it forms the upper part of the cinder cone of the original
kimberlite volcano - see SGF News Release October 21, 2008. It was necessary
to drift through this Pense material to access the target Early Joli Fou
Kimberlite located to the south and north of the shaft. A substantial tonnage
of this fine grained Pense material had to be excavated to develop the
necessary underground infrastructure for future bulk sampling. These 15
kimberlite batches represent Pense material from the base of the shaft and
drifting towards the EJF target lithology to the south.
    The diamond recoveries total 288.36 carats from 5,673.82 dry tonnes of
kimberlite processed. Included in this release are results for 15 kimberlite
batches. A total of 2,321 commercial sized diamonds (greater than
1.18 millimetre square mesh screen), collectively weighing 287.89 carats, has
been recovered from these 15 batches. Nineteen diamonds greater than one carat
have been recovered and the four largest stones are: 45.95, 4.92, 4.63 and
3.77 carats, respectively. In addition, 24 diamonds totaling 0.47 carats were
recovered down to 0.85 millimetre square mesh. The colour of 37 percent of the
diamonds has been classified as white, with a further 39 percent classified as
    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 (EJF) and
coarse grained 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 fine grained Pense
Kimberlite. The lithology of these 15 kimberlite batches is consistent with
the pilot hole and a locality map of the underground drifting is available on
the Shore website at: Kimberlite processed and diamond
results for the 15 sample batches are listed in the following table.

                Location                  Number                     Largest
    Batch    (Shaft: metres       Dry       of      Total    Grade     Stone
    No.       below surface)     Tonnes   Stones   (carats)  (cpht)  (carats)
    OS-019   Shaft 14 (184.3     472.78     256     19.08     4.04     1.43
              -193.4 metres)
    OS-020   Shaft 15 (193.4     416.31     176     14.18     3.41     1.28
              -201.9 metres)
    OS-021   Shaft 16 (201.9     523.86     249     22.76     4.34     1.38
              -211.4 metres)
    OS-022      South 1A         141.87      46      4.44     3.13     0.85
    OS-023      South 2A         357.85     101     10.30     2.88     0.83
    OS-024      South 2B         388.15     118     12.06     3.11     1.01
    OS-025      South 2C          363.5      88     10.87     2.99     3.12
    OS-026      South 2D         382.81     121     10.94     2.86     1.13
    OS-027      South 2E         345.21     148     10.83     3.14     1.25
    OS-028    Remuck-OS-001      410.35     122     13.35     3.25     1.21
    OS-029    Refuge-OS-001      305.13     133     20.29     6.65     4.63
    OS-030      South 2F         405.23     227     21.17     5.22     1.11
    OS-031    Refuge-OS-002      406.08     189     24.42     6.01     2.85
    OS-032      South 2G         373.61     167     28.24     7.56     4.92
    OS-033     Electrical        381.08     204     65.43    17.17    45.95
    Total                      5,673.82   2,345    288.36     5.08

    The four largest stones are 45.95 (Grey), 4.92 (Grey), 4.63 (Off-white)
and 3.77 (Off-white), respectively. Seven diamonds exceed two carats and
nineteen diamonds exceed one carat, of which four are white, nine are
off-white, three are grey and three are brown. A total of 54 diamonds exceed
0.5 carats. Thirty-seven percent of this diamond parcel is classified white in
colour, with a further 39 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:
"While the fine grained Pense material has low diamond grade, pattern core
drilling has shown that significant volumes of coarse grained Pense material
occur at depth within Orion South and, our experience from Star suggests that
there is the potential for elevated diamond grades within the coarse grained
Pense Kimberlite. The occurrence of the 45.95 carat stone within the Pense
confirms the prospects of coarser grained parts of this kimberlite lithology
and the large stone potential of Orion South. It is the primary goal of the
underground bulk sampling program on Orion South to collect 5,000 carats from
the EJF, however, a number of carats will also be recovered from the Pense en
route to the EJF."
    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
    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

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