Star Diamond Project: Phase 3 Pense diamond results

    14.63, 9.09, 7.34 and 6.50 carat diamonds in 678.56 carat parcel

    Stock Symbol: SGF: TSX

    SASKATOON, March 30 /CNW/ - George H. Read, P. Geo., Senior Vice
President Exploration and Development, is pleased to announce the fifth set of
diamond results from Phase 3 of the underground bulk sampling of the Star
Kimberlite (Phase 1 being the original 25,000 tonne bulk sample and Phase 2
being the 18,000 tonne bulk sample). The diamond recoveries total
678.56 carats from 5,443.77 dry tonnes processed. Included in this release are
results for eighteen kimberlite batches of a total of approximately
50 kimberlite batches that will be processed as part of the Phase 3 bulk
sampling program. A total of 5,515 commercial sized diamonds (greater than
1.18 millimetre square mesh screen), collectively weighing 676.25 carats, has
been recovered from the eighteen batches. Seventy-nine diamonds greater than
one carat have been recovered and the four largest stones are: 14.63, 9.09,
7.34 and 6.50 carats, respectively. In addition, 131 diamonds (2.31 carats)
were recovered down to 0.85 millimetre square mesh. The colour of 70 percent
of the diamonds has been classified as white, with a further 15 percent
classified as off-white.
    All of these kimberlite batches were recovered from the Pense Kimberlite,
which was mined to the northeast of the shaft, at the end of the ramp and
drive (South 16) to the 215 metre level. All Pense kimberlite batches with
grades less than 10 carats per hundred tonnes were sampled from finer grained
Pense Kimberlite, near the boundary with the Early Joli Fou (EJF). The higher
grade Pense batches (Batch 205 and 209) were samples some 75 metres into the
Pense, from the point where the South 16 drive initially crosses the EJF-Pense
    Kimberlite processed and diamond results for the eighteen sample batches
are listed in the table below. Grades are expressed in carats per hundred
tonnes (cpht).

    Batch                            Diamonds                       Largest
     No.    Location        Dry      Number of    Total     Grade    Stone
                           Tonnes     Stones    (carats)   (cpht)   (carats)
    186 South 17 Diamond
        Drill Station      302.65      328        35.68     11.79     2.44
    187 South 17B          413.42      485        53.63     12.97     3.74
    188 South 17A          347.35      443        57.69     16.61     9.09
    189 South 16 Diamond
        Drill Station
        Right               88.31       81         6.09      6.90     0.49
    190 South 16 Diamond
        Drill Station
        Left                90.31      101        12.41     13.74     2.94
    191 South 16W          216.50      243        20.56      9.50     1.59
    201 South 16X          350.60      204        19.24      5.49     2.29
    202 South 17C          396.48      437        52.97     13.36     4.05
    203 South 16Z          318.28      307        33.46     10.51     2.50
    204 South 17D          393.12      339        26.39      6.71     1.74
    205 South 17H (pile A) 196.80      255        57.58     29.26    14.63
    206 South 17E          305.60      184        21.35      6.99     2.25
    207 South 16AA         300.78      240        39.31     13.07     3.77
    208 South 17G          280.69      370        54.34     19.36     4.92
    209 South 17H (pile B) 338.40      459        70.85     20.94     7.34
    210 South 28A          330.73      373        38.40     11.61     2.48
    211 South 16Y          364.93      324        35.09      9.62     4.07
    212 South 17F          408.82      473        43.52     10.65     1.99
    Total                5,443.77    5,646       678.56     12.46

    The four largest stones are: 14.63 (Batch 205, off white), 9.09 (Batch
188, grey), 7.34 (Batch 209, white) and 6.50 (Batch 205, white) carats
respectively. Thirty-one diamonds exceed two carats and 79 diamonds exceed one
carat, of which 40 are white, 18 are off-white, 16 are grey, 2 are brown and 3
other. A total of 176 diamonds exceed 0.5 carats. Seventy percent of this
diamond parcel is classified white in colour, with a further 15 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:
"Approximately 11,000 tonnes of Pense Kimberlite has been collected in Phase 3
of the underground bulk sampling program. These results provide the details of
the 678.56 carats of diamonds recovered from the initial 5,443.77 tonnes
processed. The balance of the Pense Kimberlite sampled includes 1509.89 tonnes
(Batches 213 to 217) which have been processed through the on-site plant and
concentrates dispatched to SGS Lakefield for final diamond recovery, and
approximately 4,000 tonnes that still remain to be processed on site. Shore
geologists are encouraged by the positive relationship that exists between
coarse grained Pense Kimberlite and higher diamond grade, as this will have a
positive impact on the future economics of the Star Diamond Project. The Pense
Kimberlite sampled and drilled increases in coarseness from the EJF-Pense
contact towards the northeast. The available results represent less than half
of the total sampled and only when the full Pense Kimberlite results are
available, is it expected to be representative of the overall Pense Kimberlite
coarseness. The collection of data which will be used to determine the
presence of a National Instrument 43-101 compliant Mineral Resource is
proceeding on schedule."
    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 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 Star Kimberlite is currently being evaluated using a combination of
pattern core drilling, underground bulk sampling and large diameter drilling.
This evaluation program, with a budget of some $60 million, will determine the
presence of a National Instrument 43-101 compliant Mineral Reserve for the
Star Kimberlite. 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 the anticipated results of Shore's
pre-feasibility study 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, (306) 667-3503

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890