Stock Symbol: SGF: TSX
SASKATOON, May 7, 2015 /CNW/ - George H. Read, P. Geo., Senior Vice President Exploration and Development of Shore Gold Inc. ("Shore" or the "Company") is pleased to announce that the large diameter drilling ("LDD") program on the Orion South Kimberlite has commenced. The mobilization of LDD equipment started last week and drilling has now commenced. This LDD program has been preceded by core drilling to confirm kimberlite thickness and geological continuity beyond the existing grid drilling completed on the Orion South Kimberlite.
Large Diameter Drilling Program
The LDD program, consisting of up to twelve 24 inch holes, aims to estimate macro-diamond (+0.85 millimetre) grade information from strategically located drillholes. The planned LDD program targets up to 2,600 metres of drilling, including some 1,440 metres in overburden and 1,160 metres of kimberlite, down to a maximum depth of about 250 metres below surface. The LDD program, which uses the reverse flood method of drilling, is being undertaken by Foraco Canada Limited ("Foraco").
Core Drilling Program
To date, eight holes have been completed in the NQ core drilling program, which was commenced on the Orion South Kimberlite in late March. A total of 1,596 metres of core drilling has been completed and 495 metres of kimberlite has been intersected. Due to the thickness of kimberlite intersected, the core drilling program has been expanded and will continue, with at least six holes remaining to be drilled. This core drilling extends the existing 100 metre grid drilling program already completed on the Orion South Kimberlite.
Senior Vice President Exploration and Development, George Read, states: "This LDD program on the Orion South Kimberlite aims to provide diamond grade information at new and additional grid locations and this additional diamond grade information will be used to revise the Mineral Resource estimate for Orion South. The Company plans to re-optimise the open pit on Orion South using the updated Mineral Resource estimate and updated diamond prices. Thereafter, we aim to optimise the existing Feasibility Study with a revised mine plan, where Orion South is mined first. Preliminary calculations suggest that such an optimised Feasibility Study, with a new mine plan, can positively change the economic model for the Project by increasing the Mineral Resource Estimate and decreasing the pre-production capital costs and the time to achieve diamond production."
The Star-Orion South Diamond Project is located in central Saskatchewan some 60 kilometres east of the city of Prince Albert. The Project is in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development. The NI 43-101 compliant Technical Report on the Feasibility Study and Updated Mineral Reserve for the Star-Orion South Diamond Project dated July 14, 2011 provided an updated Mineral Reserve Estimate for the Star and Orion South kimberlite deposits: Probable Mineral Reserves of 279 million tonnes containing 34.4 million carats of diamonds at a weighted average price of US$242 per carat, that can be profitably mined over 20 years. In addition to the Mineral Reserve Estimate, the Star and Orion South Kimberlites have been estimated to include Inferred Resources containing 15.7 million carats.
The Project includes a four-year construction period followed by the excavation of two open-pit mines and processing of approximately 45,000 tonnes of kimberlite rock per day over a projected 20-year period. Shore's plans for decommissioning include progressive reclamation activities beginning within five years from the start of construction and will continue beyond the operations phase of the Project.
In March 2014 an estimate was made of the Target for Further Exploration ("TFFE", formerly known as "Potential Mineral Deposit") for five partially evaluated kimberlites and the portions of the Star and Orion South Kimberlites, which fall outside the Indicated and Inferred Resources previously estimated (see SGF News Release July 14, 2011). The TFFE for these seven Fort à la Corne Kimberlites is estimated to include between 983 million and 1.17 billion tonnes of kimberlite containing between 52 and 90 million carats of diamonds. The TFFE is conceptual in nature and is not a Mineral Resource and it is uncertain whether further exploration work will result in the TFFE being delineated as a Mineral Resource.
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
This news release contains forward-looking statements as defined by certain securities laws, including the "safe harbour" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook. In particular, statements regarding Shore's future operations, future exploration and development activities or other development plans constitute forward-looking statements. By their nature, statements referring to mineral reserves, mineral resources or TFFE constitute forward-looking statements.
Forward-looking statements in this press release include, but are not limited to statements with respect to the proposed LDD program (including the number of holes to be drilled, the metres to be drilled, the timing of the drilling and the duration of the program) and Shore's objectives for the ensuing year including the anticipated improvement in the Mineral Resource Estimate, the re-optimization of the open pit, the re-estimation of the Mineral Resources, the optimization of the feasibility study and the anticipated positive change in the economic model for the Project; TFFE; the range of quantity, range of grade and range of carats for the TFFE; mineral resource estimate for the Star and Orion South kimberlite deposits; inferred resources for the Star and Orion South kimberlite deposits; range of tons of kimberlites not included in the TFFE; the aim of Shore to undertake additional studies and the potential upgrading of the Feasibility Study and inferred to indicated resources.
These forward-looking statements are based on Shore's current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific.
Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world diamond markets, changes in diamond prices, 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, development, closure, 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. Shore's anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.
Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to Shore, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events. Unless required by applicable securities law, Shore does not undertake to update any forward-looking statement that is made herein.
SOURCE Shore Gold Inc.
For further information: [email protected] or (306) 664-2202; www.shoregold.com