DIAMONDS: Star-Orion South project given federal approval

SASKATCHEWAN – The Canadian Environmental Assessment Agency has made a positive decision for Shore Gold's Star-Orion South diamond project 60 km east of Prince Albert. Making the announcement, environment minister Leona Aglukkaq said the development "is not likely to cause significant adverse environmental effects when the mitigation measures described in the comprehensive study report are taken into account."

Construction of the Star-Orion South mine and processing plant will take four years. Two open pits will be established to produce approximately 45,000 tonnes of kimberlite per day for a 20-year period. Reclamation will begin within five years from the start of construction.

Shore estimates the probable mineral reserve at 279 million tonnes containing 34.4 million ct of diamonds at a weighted average price of US$242 per ct. In addition, there are inferred resources containing 15.7 million ct.

Details about the Star-Orion South project are available at ShoreGold.com.