DIAMOND STUDY: Star-Orion South mine and plant to cost $1.5 billion

SASKATCHEWAN - Shore Gold of Saskatoon has filed its updated prefeasibility study (PFS) and 43-101 report for the Star-Orion South diamond project 60 km east of Prince Albert. According to the study, pre-production capital spending will reach $1.54 billion to put the property into production by 2016. The budget breaks down thus: $251 million for open pit development, $454 million for mine equipment, and $833 million for the processing plant, infrastructure and engineering, procurement and construction management (EPCM).

Shore estimates that mining costs over the life of the mine will be $4.87/tonne processed. The operating cost of the processing plant will be $3.29/tonne, and the general and accounting costs (G&A) will be $1.65/tonne processed. Mining and processing is planned at a rate of 14.2 million t/y.

Shore is the 100%-owner of the Star kimberlites and 60% owner of the Orion South joint venture with Newmont Mining. The PFS may be read in its entirety at www.ShoreGold.com.