DIAMOND DEVELOPMENT: Shore Gold downsizes

SASKATCHEWAN – Despite a positive feasibility study for the Star-Orion South diamond mine 60 km east of Prince Albert, Shore Gold of Saskatoon has been unable to find financing to move the project forward. In a release, the company said,...

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SASKATCHEWAN – Despite a positive feasibility study for the Star-Orion South diamond mine 60 km east of Prince Albert, Shore Gold of Saskatoon has been unable to find financing to move the project forward. In a release, the company said, “Shore has actively pursued various options for the financing of project development. Recently, one of these options reached an advanced stage of negotiation but was not concluded due to current world economic uncertainties.”

The result is that the company has reduced the number of directors, corporate officers and other personnel. The board has been cut from eight to five members. The COO and two vice-presidents will leave at the end of the month and not be replaced. Seven other jobs will be cut, leaving only 15 employees to complete the environmental approval process and project permitting, as well as site maintenance, safety and security. Shore has also postponed its agreement with SaskPower.

Senior VP exploration and development, George Read, said, "The positive FS shows that the Star and Orion South kimberlites can be economically developed as a world class diamond mine. We are convinced that the project is an essential part of the world's future rough diamond supply and we will continue our efforts to source and assess financing options. In the interim, it is important for Shore to safeguard its assets, conserve cash and complete the EIA and permitting process."

Learn more about the Star-Orion South diamond project at ShoreGold.com.

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