Fort a La Corne Joint Venture: Orion South diamond results 6.31, 3.21, 1.83 and 1.60 carat diamonds in 97.06 carat parcel

    Stock Symbol: SGF: TSX

    SASKATOON, SK, Feb. 5 /CNW/ - George H. Read, P. Geo., Senior Vice
President Exploration and Development, is pleased to announce the first 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 97.06 carats from
604.79 dry tonnes of kimberlite processed. Included in this release are
results for 4 kimberlite batches. A total of 786 commercial sized diamonds
(greater than 1.18 millimetre square mesh screen), collectively weighing
96.72 carats, has been recovered from these 4 batches. Ten diamonds greater
than one carat have been recovered and the four largest stones are: 6.31,
3.21, 1.83 and 1.60 carats, respectively. In addition, 19 diamonds totaling
0.34 carats were recovered down to 0.85 millimetre square mesh. The colour of
45 percent of the diamonds has been classified as white, with a further
17 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.
This pilot hole terminated in kimberlite and adjacent holes suggest that the
kimberlite-sediment boundary occurs at approximately 270 metres below surface.
The lithology of these four kimberlite batches is consistent with the pilot
hole: OS-001 has 88 percent till dilution and the balance is Late Joli Fou
(LJF) kimberlite; OS-002 is LJF with minor (5 percent) till dilution; OS-003
is predominantly EJF2 kimberlite with approximately 15 percent kimberlite
breccia (KB) and the balance pyroclastic kimberlite (PK), and; OS-004 is
EJF2KB. 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-001   Shaft 1: 101.9 -
              102.6 metres       29.66      1       0.22      0.74     0.22
    OS-002   Shaft 2: 102.6 -
              104.3 metres       86.17     88       6.31      7.32     0.38
    OS-003   Shaft 3: 104.3 -
              110.2 metres      243.10    468      49.66     20.43     6.31
    OS-004   Shaft 4: 110.2 -
              116.6 metres      245.86    248      40.87     16.62     3.21
    Total                       604.79    805      97.06     16.05

    The four largest stones are: 6.31, 3.21, 1.83 and 1.60 carats
respectively. Two diamonds exceed two carats and 10 diamonds exceed one carat,
of which one is white, 4 are grey, 4 are brown, and one is yellow. A total of
33 diamonds exceed 0.5 carats. Forty-five percent of this diamond parcel is
classified white in colour, with a further 17 percent classified as off-white.
99.6 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:
"These initial bulk sample diamond results confirm that kimberlite with
elevated diamond grade (greater than 15 cpht) occurs at high levels in Orion
South, in close proximity (some 2 metres) to the overlying glacial sediments.
In contrast to the Star Kimberlite, Orion lacks the covering of Colorado
mudstone, and glacial sediments of the overburden are in direct contact with
Orion South Kimberlite. This stratigraphy will facilitate any potential future
mining of Orion South. The EJF age kimberlite was not only intersected at
shallower depths than in the Star Kimberlite shaft, but the EJF sampled to
date shows higher grades than the EJF sampled in the shaft at the Star
Kimberlite. Present estimates suggest that the three kimberlite lithologies
(EJF1, EJF2 and Pense) account for a target of some 300 to 330 million tonnes
of diamondiferous kimberlite in Orion South. This tonnage estimate is
conceptual in nature, is not a resource and additional work may not
necessarily lead to the definition of a resource on Orion South. 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. To date, some 1,600 metres of large diameter
drilling has been completed in seven drill holes."
    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.
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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