Stock Symbol: SGF: TSX
SASKATOON, June 15,
2015 /CNW/ - George H. Read, P. Geo., Senior Vice
President Exploration and Development of Shore Gold Inc. ("Shore"
or the "Company") is pleased to announce that both the Core and
Large Diameter Drilling ("LDD") programs on the Orion South
("OS") Kimberlite have been successfully completed. The LDD team of
Foraco Canada Limited ("Foraco"), the core drilling team of Newmac
Industries Ltd. ("Newmac") and Shore project managers and drill
supervisors are to be complimented on their efficient work, which
has led to the completion of these programs ahead of schedule.
Core Drilling Program
The Core Drilling program included 18 vertical NQ
(48 millimetre) diamond drill holes totaling 3,617 metres that
intersected 1,208 metres of Early Joli Fou ("EJF") and
Pense kimberlite, confirming
significant new intersections of kimberlite on the western flank
and southern part of the OS Kimberlite. A map of the core hole
positions for this program is available on the Company website:
www.shoregold.com. These significant new kimberlite intersections
(up to 112 metres) extend the existing 100 metre grid drilling
program already completed on OS. The major kimberlite intersections
by hole of the core drilling program are listed in Table 1 below.
The core will be logged in detail by Shore geologists and the
results will be added to the existing Geological Model, expanding
the Model to the west and the south.
Large Diameter Drilling Program
The LDD program included twelve 24 inch holes
totaling 2,559.9 metres that sampled a total of 1,027.48 metres of
EJF and Pense kimberlite units
within the OS Kimberlite. A total of 439
wet recovered tonnes of kimberlite, in 97 samples, was
collected from the twelve LDD holes. The kimberlite intersections
and sample details of the LDD program are listed in Table 2 below.
The samples are in the process of being shipped to Rio Tinto Canada
Diamond Exploration Inc's. Thunder Bay Mineral Processing
Laboratory (ISO 9001:2008 Certified). This laboratory was chosen
for the commercial macrodiamond (+1.00 millimetre) recovery from
the LDD kimberlite samples as its sample processing flow-sheet
closely replicates that used in the past by the Shore on-site bulk
sampling plant.
The LDD program aims to estimate macro-diamond
grade information from strategically located drillholes. This
diamond grade estimation will be used to re-estimate the Mineral
Resources on the OS kimberlite. The twelve LDD holes were located
within kimberlite classified as Inferred Resources by the 2011
Feasibility Study. These LDD holes will be included in the
calculation of a revised Resource estimate for OS. Their addition
to the LDD grid will permit the inclusion of 11 previously drilled
LDD holes that were excluded from the Resource estimate of the
Feasibility Study due to strictly constrained search parameters. A
map of the LDD hole positions of this program is available on the
Company website: www.shoregold.com.
Senior Vice President Exploration and
Development, George Read, states:
"The LDD program has been completed ahead of the original schedule
and more than three quarters of the samples have already been
shipped to the Thunder Bay Mineral Processing Laboratory where
processing has commenced. This LDD program on the Orion South
Kimberlite aims to provide diamond grade information at new grid
locations and this additional diamond grade information will be
used to revise the Mineral Resource estimate for Orion South.
The Company plans to re-optimise the open pit on Orion South using
the updated Mineral Resource estimate and updated diamond prices.
Thereafter, we aim to optimise the existing Feasibility Study with
a revised mine plan, where Orion South is mined first. Preliminary
calculations suggest that such an optimised Feasibility Study, with
a new mine plan, can positively change the economic model for the
Project by increasing the Mineral Resource Estimate and decreasing
the pre-production capital costs and the time to achieve diamond
production."
Table 1. Core Drill Hole Details
|
Core Hole
#
|
Total
Drilled
(metres)
|
Major
Kimberlite
Intersection
(metres)
|
1
|
140-15-091C
|
200.25
|
91.1
|
2
|
140-15-092C
|
209.40
|
71.8
|
3
|
140-15-093C
|
200.25
|
54.0
|
4
|
140-15-094C
|
185.01
|
66.0
|
5
|
140-15-095C
|
209.40
|
97.7
|
6
|
140-15-096C
|
191.11
|
55.4
|
7
|
140-15-097C
|
194.16
|
80.8
|
8
|
140-15-098C
|
188.06
|
78.2
|
9
|
140-15-099C
|
188.06
|
62.3
|
10
|
140-15-100C
|
206.35
|
100.5
|
11
|
140-15-101C
|
191.16
|
14.6
|
12
|
140-15-102C
|
224.70
|
91.0
|
13
|
140-15-103C
|
230.79
|
112.0
|
14
|
140-15-104C
|
197.50
|
22.0
|
15
|
141-15-098C
|
209.40
|
56.9
|
16
|
141-15-099C
|
191.11
|
26.5
|
17
|
141-15-100C
|
203.30
|
59.8
|
18
|
141-15-101C
|
197.21
|
67.5
|
|
Total
|
3,617.22
|
1,208.1
|
Table 2. LD Drill Hole Details
|
LDD Hole
#
|
Depth
(metres)
|
Kimberlite
Sampled(metres)
|
Kimberlite
Samples
(#)
|
1
|
LDD-140-15-022
|
204.90
|
102.55
|
9
|
2
|
LDD-140-15-023
|
197.75
|
65.75
|
7
|
3
|
LDD-140-15-024
|
221.00
|
81.00
|
7
|
4
|
LDD-140-15-025
|
199.00
|
99.30
|
10
|
5
|
LDD-140-15-026
|
194.00
|
86.70
|
9
|
6
|
LDD-140-15-027
|
220.00
|
89.50
|
8
|
7
|
LDD-141-15-019
|
234.85
|
87.30
|
8
|
8
|
LDD-141-15-020
|
221.10
|
95.08
|
9
|
9
|
LDD-141-15-021
|
204.40
|
67.60
|
6
|
10
|
LDD-141-15-022
|
227.00
|
99.50
|
9
|
11
|
LDD-141-15-023
|
213.90
|
70.80
|
7
|
12
|
LDD-141-15-024
|
222.00
|
82.40
|
8
|
|
Totals
|
2,559.90
|
1,027.48
|
97
|
The Star-Orion South Diamond Project is located
in central Saskatchewan some 60
kilometres east of the city of Prince Albert. The Project is
in close proximity to established infrastructure, including paved
highways and the electrical power grid, which provide significant
advantages for future mine development. The Technical Report on the
Feasibility Study and Updated Mineral Reserve for the Star-Orion
South Diamond Project dated July 14,
2011 provided an updated Mineral Reserve Estimate for the
Star and Orion South kimberlite deposits: Probable Mineral
Reserves of 279 million tonnes containing 34.4 million carats of
diamonds at a weighted average price of US$242 per carat, that can be profitably mined
over 20 years. In addition to the Mineral Reserve Estimate, the
Star and Orion South Kimberlites have been estimated to include
Inferred Resources containing 15.7 million carats.
The Project includes a four-year construction
period followed by the excavation of two open-pit mines and
processing of approximately 45,000 tonnes of kimberlite rock
per day over a projected 20-year period. Shore's plans for
decommissioning include progressive reclamation activities
beginning within five years from the start of construction and will
continue beyond the operations phase of the Project.
In March 2014 an
estimate was made of the Target for Further Exploration ("TFFE",
formerly known as "Potential Mineral Deposit") for five partially
evaluated kimberlites and the portions of the Star and Orion South
Kimberlites, which fall outside the Indicated and Inferred
Resources previously estimated (see SGF News Release July 14, 2011). The TFFE for these seven Fort à
la Corne Kimberlites is estimated to include between 983 million
and 1.17 billion tonnes of kimberlite containing between 52 and 90
million carats of diamonds. The TFFE is conceptual in nature and is
not a Mineral Resource and it is uncertain whether further
exploration work will result in the TFFE being delineated as a
Mineral Resource.
All technical information in this news release
has been prepared under the supervision of George Read, Senior Vice President of
Exploration and Development, Professional Geoscientist in the
Provinces of Saskatchewan and
British Columbia and Mark Shimell, Project Manager, Professional
Geoscientist in the Province of Saskatchewan, who are the Company's "Qualified
Persons" under the definition of NI 43-101.
Shore is a Canadian based corporation engaged in
the acquisition, exploration and development of mineral properties.
Shares of the Company trade on the TSX Exchange under the trading
symbol "SGF".
Caution Regarding Forward-Looking
Statements
This news release contains forward-looking
statements as defined by certain securities laws, including the
"safe harbour" provisions of Canadian securities legislation and
the United States Private Securities Litigation Reform Act of 1995.
Forward-looking information is often, but not always, identified by
the use of words such as "anticipate", "believe", "expect", "plan",
"intend", "forecast", "target", "project", "guidance", "may",
"will", "should", "could", "estimate", "predict" or similar words
suggesting future outcomes or language suggesting an outlook. In
particular, statements regarding Shore's future operations, future
exploration and development activities or other development plans
constitute forward-looking statements. By their nature, statements
referring to mineral reserves, mineral resources or TFFE constitute
forward-looking statements.
Forward-looking statements in this press release
include, but are not limited to statements with respect to the
proposed LDD program (including the number of holes to be drilled,
the metres to be drilled, the timing of the drilling and the
duration of the program) and Shore's objectives for the ensuing
year including the anticipated improvement in the Mineral Resource
Estimate, the re-optimization of the open pit, the re-estimation of
the Mineral Resources, the optimization of the feasibility study
and the anticipated positive change in the economic model for the
Project; TFFE; the range of quantity, range of grade and range of
carats for the TFFE; mineral resource estimate for the Star and
Orion South kimberlite deposits; inferred resources for the Star
and Orion South kimberlite deposits; range of tons of kimberlites
not included in the TFFE; the aim of Shore to undertake additional
studies and the potential upgrading of the Feasibility Study and
inferred to indicated resources.
These forward-looking statements are based on
Shore's current beliefs as well as assumptions made by and
information currently available to it and involve inherent risks
and uncertainties, both general and specific.
Risks exist that forward-looking statements will
not be achieved due to a number of factors including, but not
limited to, developments in world diamond markets, changes in
diamond prices, risks relating to fluctuations in the Canadian
dollar and other currencies relative to the US dollar, changes in
exploration, development or mining plans due to exploration results
and changing budget priorities of Shore or its joint venture
partners, the effects of competition in the markets in which Shore
operates, the impact of changes in the laws and regulations
regulating mining exploration, development, closure, judicial or
regulatory judgments and legal proceedings, operational and
infrastructure risks and the additional risks described in Shore's
most recently filed Annual Information Form, annual and interim
MD&A. Shore's anticipation of and success in managing the
foregoing risks could cause actual results to differ materially
from what is anticipated in such forward-looking statements.
Although management considers the assumptions
contained in forward-looking statements to be reasonable based on
information currently available to it, those assumptions may prove
to be incorrect. When making decisions with respect to Shore,
investors and others should not place undue reliance on these
statements and should carefully consider the foregoing factors and
other uncertainties and potential events. Unless required by
applicable securities law, Shore does not undertake to update any
forward-looking statement that is made herein.
SOURCE Shore Gold Inc.