Shore Gold Inc. - Fort a la Corne joint venture: Orion South LDD diamond results 5.21, 2.93, 2.81 and 1.29 carat diamonds in parcels totaling 78.22 carats

    SASKATOON, June 25 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration and Development, is pleased to announce the diamond results for
the four hole large diameter drill (LDD) program that specifically targeted
the Pense kimberlite on the Orion South Kimberlite. The location of these LDD
holes, with respect the previously drilled LDD holes, is indicated on a map
which is available at This LDD program forms part of the
evaluation of the Orion Kimberlite Cluster within the Fort a la Corne Joint
Venture (FALC-JV), where Shore Gold Inc. (Shore) is the Operator with a 60
percent interest and Newmont Mining Corporation of Canada Limited (Newmont)
has a 40 percent interest. The purpose of the LDD program is to provide a
preliminary indication of the presence of macrodiamonds in the Pense, as LDD
drilling completed by the former operator of the FALC-JV had only sampled
limited Pense intersections within Orion South. This LDD method of sampling
provides an indication of the presence of macrodiamonds but does not
necessarily give the true grade of these relatively low grade, large tonnage
kimberlites. The true grade of these Fort a la Corne kimberlites can only be
determined accurately through a large underground bulk sampling exercise such
as has been completed on the Star Diamond Project.
    The current Orion South geological model (SGF News Releases March 2 and
March 19, 2007) that has been developed by Shore and Newmont geologists shows
that Orion South is predominantly composed of Early Joli Fou (EJF1 and EJF2:
176-196 million tonnes) and Pense (112-124 million tonnes) age kimberlites.
The EJF1 and EJF2 lithologies are associated with separate feeder vents, with
EJF1 in the south (140) and EJF2 in the north (141). These are Pense and EJF
time equivalent kimberlites which have been erupted synchronous with the
deposition of the Pense and EJF sediments, respectively, and, while the Pense
and EJF Kimberlites in Orion South exhibit many similarities to the Pense and
EJF in Star, they are not exactly the same kimberlite lithologies. These four
LDD holes targeted plus 100 metre intersections of the Pense in Orion South.
    Diamonds totaling 78.22 carats were recovered from the processing of
1,448.05 dry tonnes of kimberlite from the four LDD holes reported. The total
diamond recoveries from the Pense Kimberlite intersected in each LDD hole are
listed in Table 1 and the drill intersects in Table 2. The grade range listed
in Table 1 shows the range of diamond grades (in cpht) for individual samples
collected at various levels, throughout the kimberlite intersection, down each
LDD hole. Kimberlite samples are collected over approximately 10 metre
intervals down each LDD hole. Kimberlite with elevated grade has been
encountered at various depths in all four holes and examples of specific
samples are listed in Table 3. Ninety-nine percent of these diamonds are
commercial stones greater than 1.18 millimetre (688 diamonds weighing 77.70
carats) with the balance of the goods (30 diamonds weighing 0.52 carats)
falling in the +0.85-1.16 millimetre size fraction. The four largest stones
are: 5.21 carat grey from LDD-140-07-001, 2.93 carat off white from
LDD-141-07-002, 2.81 carat off white from LDD-141-07-001 and a 1.29 carat
white from LDD-141-07-001. Nine diamonds exceed one carat of which 4 are
white, 2 are off white and 3 are grey. The colour of 50 percent of the
diamonds has been classified as white, with a further 30 percent classified as
    Senior Vice President Exploration and Development, George Read, states:
"These LDD results indicate the Pense kimberlite within Orion South contains
macrodiamonds and zones with elevated grades (7.00 - 28.50 cpht) occur at
various elevations in these LDD holes. The elevated grades, some of which are
from kimberlite in direct contact with the glacial overburden, and the
significant volume of diamond bearing kimberlite justify the next phase of
exploration on Orion South. Present early stage estimates suggest that Orion
South contains approximately 176 - 196 million tonnes of diamond bearing EJF1
and EJF2 and 112 - 124 million tonnes of diamond bearing Pense kimberlite
within the area of potential economic interest. These estimates are conceptual
in nature and do not represent a Mineral Resource estimate and future work may
not necessarily lead to the definition of a Mineral Resource on Orion South.
Additional work is warranted to further investigate the economic potential of
these kimberlite lithologies. Orion South is a target for shaft sinking and
bulk sampling."

    Table 1: Orion South Pense Diamond Recoveries, Grade (carats per hundred
tonnes), Grade Range and Stones per Tonne for each LDD Hole

    LDD Hole No.                                              Grade    Stones
                  Kimberlite Sampled  Total   Total  Grade    Range      Per
                  Lithology  Tonnes  Carats  Stones (cpht)   (cpht)     Tonne
    LDD-140-07-001  Pense    322.15   24.18   199    7.51  2.53 - 28.53  0.61
    LDD-140-07-002  Pense    281.14   12.11   130    4.31  0.64 - 17.85  0.46
    LDD-141-07-001  Pense    408.11   24.54   215    6.01  0.65 - 26.54  0.53
    LDD-141-07-002  Pense    436.65   17.39   174    3.98  0.79 - 15.64  0.40
    TOTAL                  1,448.05   78.22   718    5.40  0.64 - 28.80  0.50

    Table 2: Orion South Pense intersects and largest stone for each

                                    Depth                            Largest
    LDD Hole No.      Kimberlite     From      Depth To   Interval    Stone
                       Lithology   (metres)    (metres)   (metres)   (carats)
    LDD-140-07-001       Pense      147.43      266.13     118.70       5.21
    LDD-140-07-002       Pense       93.16      208.50     115.34       1.18
    LDD-141-07-001       Pense       98.34      253.07     154.73       2.81
    LDD-141-07-002       Pense      101.13      280.00     178.87       2.93
    TOTAL                                                  567.64

    Table 3: Orion South Pense depth intersects and associated elevated

    LDD Hole No.      Kimberlite     From      Depth To   Interval     Grade
                       Lithology   (metres)    (metres)   (metres)     (cpht)
    LDD-140-07-001       Pense      153.35      162.80       9.45      28.50
    LDD-140-07-001       Pense      220.23      231.90      11.67      12.58
    LDD-140-07-001       Pense      260.85      266.13       5.28       9.04

    LDD-140-07-002       Pense      147.80      157.15       9.35       7.00
    LDD-140-07-002       Pense      194.65      208.50      13.85      17.85

    LDD-141-07-001       Pense      121.90      130.20       8.30      17.73
    LDD-141-07-001       Pense      171.60      181.60      10.00      26.54
    LDD-141-07-001       Pense      249.78      253.07       3.29      20.40

    LDD-141-07-002       Pense      172.00      180.90       8.90       7.08
    LDD-141-07-002       Pense      217.00      226.00          9      15.64

    LDD holes (1.2 metre diameter) are drilled using two Bauer BG36 drill
rigs, which use Kelly-bar drilling for the till and mudstone overburden and
switch to reverse circulation drilling when kimberlite is intersected. The LDD
holes are drilled on the same grid as the PQ (75 millimetres) core drilling
and the LDD holes are sited within three metres of an existing core hole that
has been logged in detail. The subsurface geology of the LDD holes is known
from the core drilling and detailed logging and this information is used to
define the downhole sample breaks for the LDD. Hole volumes are accurately
determined using a caliper and the volume to mass conversion is completed
using on-site bulk kimberlite density measurements determined using the water
immersion method (average bulk density: 2.25 grams per cubic centimetre).
These bulk density measurements are correlated with specific gravity
measurements determined by SGS Lakefield Research on the adjacent kimberlite
    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 SGS Lakefield Research in Ontario for final diamond recovery. The
SGS Lakefield Research process includes drying, screening, magnetic
separation, manual sorting and diamond weighing and description. SGS Lakefield
Research is accredited to the ISO/IEC 17025 standard by the Standards Council
of Canada as a testing laboratory for specific tests.
    The evaluation of the Orion Kimberlite Cluster within the FALC-JV, with a
budget of approximately $66.5 million, is now the largest work program
outlined for any of the Fort a la Corne kimberlites. 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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