Shore Gold JV recovers large diamonds up to 3.61 carats

2009-01-23 12:07 ET - News Release

Mr. George Read reports

FORT A LA CORNE JOINT VENTURE: ORION SOUTH DIAMOND RESULTS 3.61, 3.31, 3.03 AND 2.66 CARAT DIAMONDS IN 398.38 CARAT PARCEL

Shore Gold Inc. is releasing the sixth set of diamond results from underground bulk sampling of the Orion South kimberlite, within the Fort a la Corne joint venture (FALC-JV) where Shore Gold is the operator with a 60-per-cent interest and Newmont Mining Corporation of Canada Limited has 40 per cent. The diamond recoveries total 398.38 carats from 4,405.69 dry tonnes of kimberlite processed. Included in this release are results for 13 kimberlite batches. A total of 2,868 commercial-sized diamonds (greater than 1.18 millimetres per square mesh screen), collectively weighing 397.82 carats, has been recovered from these 13 batches. Thirty-eight diamonds greater than one carat have been recovered and the four largest stones are: 3.61, 3.31, 3.03 and 2.66 carats, respectively. In addition, 30 diamonds totalling 0.56 carat were recovered down to 0.85-millimetre square mesh. The colour of 39 per cent of the diamonds has been classified as white, with a further 42 per cent classified as off-white. Kimberlite processed and diamond results for the 13 sample batches are listed in the tables.

Batch    Location/lithology    Dry     Number   Total    Grade   Largest
No.                           tonnes     of    (carats)  (cpht)   stone
                                       stones                    (carats)

OS-047   SOUTH 3A -- EJF      344.22      349    57.64    16.75     2.66
Total    EJF                  344.22      349    57.64    16.75
OS-046   OS-Refuge-008 --     305.01      281    40.04    13.13     1.73
         Transitional
         Pense/EJF
OS-049   South 4B --          447.27      337    53.86    12.04     3.61
         Transitional
         Pense/EJF
OS-051   South 5A --          301.53      202    29.09     9.65     1.76
         Transitional
         Pense/EJF
OS-052   OS-Refuge-009 --     289.18      225    35.75    12.36     1.66
         Transitional
         Pense/EJF
OS-053   South 5B --          361.04      184    28.86     7.99     1.26
         Transitional
         Pense/EJF
OS-055   Pump Station-001     337.46      318    39.59    11.73     3.31
         -- Transitional
         Pense/EJF
Total    Transitional
         Pense -- EJF       2,041.49    1,547   227.19    11.13
OS-043   NORTH 1A -- Pense    412.81      199    19.60     4.75     3.03
OS-044   SOUTH 2J -- Pense    422.75      223    21.05     4.98       33
OS-045   NORTH 1B -- Pense    368.94      215    27.46     7.44     1.61
OS-048   NORTH 2A -- Pense    255.74      126    14.20     5.66     2.66
OS-050   NORTH 2B -- Pense    138.25       62     6.15     4.45     0.52
OS-054   OS-REMUCK-002 --     421.49      177    25.09     5.95     2.54
         Pense
Total    Pense              2,019.98    1,002   113.55     5.62

All batches reported were collected during lateral drifting between 150 and 200 metres from the shaft station at 186 metres below surface. A map of the underground drifting showing the locations of these batches is available on the Shore website. Three kimberlite lithologies have been sampled by these 13 batches: batch OS-047 was recovered from EJF kimberlite; batches OS-043, 044, 045, 048, 050 and 054 were recovered from Pense kimberlite; and batches OS-046, 049, 051, 052, 053 and 055 were recovered from a transitional zone of mixed EJF and Pense kimberlite.

The four largest stones are 3.61 (white), 3.31 (white), 3.03 (off-white) and 2.66 (white) carats respectively. Ten diamonds exceed two carats and 38 diamonds exceed one carat, of which 16 are white, 11 are off-white, five are grey, four are brown, one is black and one is yellow. A total of 128 diamonds exceed 0.5 carat. Thirty-nine per cent of this diamond parcel is classified white in colour, with a further 42 per cent classified as off-white. Ninety-nine per cent of the carat weight of this parcel occurs in diamonds greater than 1.18 millimetres per square mesh.

Senior vice-president exploration and development, George Read, states: "The EJF is the target lithology for diamonds within Orion South. Operating under the 2009 budget, the underground bulk sampling program is scheduled to continue into early February, 2009, and aims to maximize the size of the diamond parcel collected from the EJF. This diamond parcel will provide grade and price estimates for use in the resource estimate for Orion South. Shore aims to determine a resource estimate for Orion South during 2009."

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 Mineral Services Canada Inc. for final diamond recovery. The Mineral Services process includes de-greasing, drying, screening, magnetic separation, manual sorting, and diamond weighing and description. The Mineral Services facility, process and quality assurance procedures have been audited and ratified by an independent industry expert.

Mr. 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.

We seek Safe Harbor.