DIAMOND EXPLORATION – Star project slated for prefeasibility review

SASKATCHEWAN - SHORE GOLD of Saskatoon has budgeted $43 million more for a prefeasibility study of its Star diamond project at the Fort la Corne kimberlites. The study includes the extraction of an additional 10,000 tonnes of kimberlite from the underground workings on the 235 metre level, surface core and large diameter drilling, the definition of a mineral resource and the engineering studies required to define a mineral reserve.

Also included will be an airborne laser survey for accurate topographic mapping of the site, kimberlite and country rock test work, three-dimensional modeling, grade estimation, block model construction, mine and plant design and an environmental impact assessment.

The bulk sample will be processed through Shore's on-site dense media separation plant and the final diamond recovery will be completed at SGS Lakefield. On-site processing of kimberlite from the underground workings is scheduled to begin in late June as it is necessary to generate a stockpile of kimberlite prior to the commencement of processing. During the next month the plant will be upgraded to run continuously through the addition of a third crusher. The top size of the DMS feed will be increased from 16 to 20 mm to accommodate the recovery of larger diamonds.

The current timeline indicates that the prefeasibility study will take some 30 months to complete and is structured in such a way that Shore will be able to fast track the feasibility study immediately thereafter.

Details of the study will be available from senior VP exploration George Read at 306-664-2202.