Stock Symbol: SGF: TSX
SASKATOON, Sept. 2, 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 the
diamond results for the 12 hole Large Diameter Drilling ("LDD")
program which was recently completed on the Orion South ("OS")
Kimberlite and which are detailed and explained in Table 1.
"We are very encouraged by these LDD results on the OS Early
Joli Fou ("EJF") and Pense
kimberlite units relative to the three key goals we established
with this program:
- All of the current LDD holes were strategically located to
target OS Inferred Mineral Resources with the aim of generating
diamond grade results with the objective of moving these resources
to the Indicated Mineral Resource category for inclusion in the
Probable Reserves of a Revised Feasibility Study. The addition of
these Inferred Mineral Resources to the Indicated Mineral Resource
category would significantly improve the economics of the
Star-Orion South Diamond Project ("Project");
- Revision of the OS Mineral Resource estimate requires
additional grade results. These unfactored EJF (4.67-19.49
cpht)4 and Pense grades
(2.90-6.23 cpht) compare favourably to the modeled grades in the
original 2011 Feasibility Study ("FS") of 14.7 cpht and 6.9 cpht,
respectively for these same kimberlite units in the OS Probable
Mineral Reserves.
- These twelve 24 inch LDD holes have been sited to enable the
appropriate consideration in the upcoming revised Mineral Resource
estimate of eleven LDD holes (ten 48 inch and one 24 inch LDD hole)
that were outside the FS Indicated Resource estimate. These eleven
LDD holes were omitted from, or partially utilized in the FS
Indicated Resource estimate due to stringent resource estimation
parameters - see map of OS LDD hole positons on Company
website.
We are confident that the diamond grades determined from this
LDD program will enable a substantial kimberlite tonnage to be
added to the Indicated Mineral Resource category when the Revised
Mineral Resource estimate is determined in the coming months",
commented Mr. Read.
Table 1. Diamond results for each kimberlite type intersected
in large diameter drill holes 1 to 12.
Hole
#
|
LDD Hole #
|
Kimberlite
Type 1
|
Drill
Intercept
(metres)
|
Drilled
tonnes 2
|
Carats (+1 DTC) 3
|
Grade
(cpht) 4
|
Stones (+1 DTC) 3
|
Stones
per tonne
|
Largest
Stone (ct)
|
EJF
Intersections
|
|
|
|
|
|
|
|
|
1
|
141-15-019
|
EJF
|
171.55 -
227.95
|
36.38
|
5.49
|
15.09
|
98
|
2.69
|
1.15
|
2
|
140-15-022
|
EJF
|
102.35 -
153.20
|
32.46
|
2.69
|
8.29
|
76
|
2.34
|
0.24
|
3
|
141-15-020
|
EJF
|
137.02 -
180.00
|
27.33
|
2.99
|
10.94
|
38
|
1.39
|
1.04
|
4
|
141-15-021
|
EJF
|
136.80 -
191.40
|
35.30
|
4.27
|
12.10
|
109
|
3.09
|
0.27
|
5
|
141-15-022
|
EJF
|
150.00-217.60
|
43.89
|
4.35
|
9.92
|
106
|
2.42
|
0.35
|
6
|
141-15-023
|
EJF
|
163.00-213.90
|
32.89
|
3.88
|
11.80
|
96
|
2.92
|
0.75
|
7
|
141-15-024
|
EJF
|
160.19-179.60
|
12.63
|
2.28
|
18.06
|
32
|
2.53
|
0.76
|
7
|
141-15-024
|
EJF
|
188.90-222.00
|
21.48
|
1.74
|
8.10
|
24
|
1.12
|
1.09
|
8
|
140-15-023
|
EJF
|
132.00-183.00
|
32.74
|
6.38
|
19.49
|
67
|
2.05
|
3.25
|
9
|
140-15-024
|
EJF
|
162.10-194.80
|
21.31
|
1.01
|
4.74
|
23
|
1.08
|
0.21
|
10
|
140-15-025
|
EJF
|
99.70-199.00
|
63.67
|
8.75
|
13.75
|
137
|
2.15
|
0.82
|
11
|
140-15-026
|
EJF
|
107.30-113.00
|
3.64
|
0.17
|
4.67
|
7
|
1.92
|
0.05
|
12
|
140-15-027
|
EJF
|
130.05-194.00
|
40.59
|
4.60
|
11.34
|
86
|
2.12
|
0.78
|
12
|
140-15-027
|
EJF
|
207.10-220.00
|
8.32
|
0.85
|
10.22
|
20
|
2.40
|
0.12
|
Totals and
Averages
|
EJF
|
|
412.63
|
49.45
|
12.05
|
919
|
2.235
|
3.25
|
Pense
Intersections
|
|
|
|
|
|
|
|
|
2
|
140-15-022
|
Pense
|
153.20-204.90
|
32.64
|
1.49
|
4.57
|
44
|
1.35
|
0.13
|
3
|
141-15-020
|
Pense
|
180.00-221.10
|
26.27
|
1.64
|
6.23
|
27
|
1.03
|
0.25
|
9
|
140-15-024
|
Pense
|
194.80-221.00
|
16.97
|
0.53
|
3.13
|
19
|
1.12
|
0.09
|
11
|
140-15-026
|
Pense
|
113.00-191.20
|
50.44
|
1.46
|
2.90
|
48
|
0.95
|
0.23
|
12
|
140-15-027
|
Pense
|
194.00-207.10
|
8.50
|
0.40
|
4.71
|
12
|
1.41
|
0.03
|
Totals and
Averages
|
Pense
|
|
134.82
|
5.52
|
4.15
|
150
|
1.115
|
0.25
|
Other
Intersections
|
|
|
|
|
|
|
|
|
1
|
141-15-019
|
FG VK
|
147.55 -
171.55
|
15.48
|
0.14
|
0.91
|
9
|
0.58
|
0.02
|
1
|
141-15-019
|
RVK
|
227.95 -
234.85
|
4.45
|
0.02
|
0.45
|
1
|
0.22
|
0.02
|
3
|
141-15-020
|
FG VK
|
126.02 -
137.02
|
6.83
|
0.01
|
0.15
|
1
|
0.15
|
0.01
|
4
|
141-15-021
|
FG VK
|
191.40 -
204.40
|
8.39
|
0.10
|
1.20
|
4
|
0.48
|
0.04
|
5
|
141-15-022
|
FG VK
|
127.50-150.00
|
14.62
|
0.41
|
2.81
|
19
|
1.30
|
0.04
|
5
|
141-15-022
|
RVK
|
217.60-227.60
|
6.45
|
0.14
|
2.17
|
5
|
0.78
|
0.06
|
6
|
141-15-023
|
FG VK
|
143.10-163.00
|
12.94
|
0.26
|
2.01
|
15
|
1.16
|
0.05
|
7
|
141-15-024
|
FG VK
|
139.60-160.19
|
13.39
|
0.47
|
3.51
|
19
|
1.42
|
0.08
|
7
|
141-15-024
|
SAK
|
179.60-188.90
|
6.04
|
0.01
|
0.17
|
1
|
0.17
|
0.01
|
8
|
140-15-023
|
FG VK
|
183.00-197.75
|
9.61
|
0.02
|
0.21
|
1
|
0.10
|
0.02
|
9
|
140-15-024
|
FG VK
|
140.00-162.10
|
14.36
|
0.18
|
1.26
|
13
|
0.91
|
0.02
|
11
|
140-15-026
|
P1
|
191.20-194.00
|
1.81
|
0.02
|
1.11
|
1
|
0.55
|
0.02
|
Totals and
Averages
|
|
|
114.37
|
1.78
|
1.65
|
89
|
0.785
|
0.08
|
Notes
1.
|
Kimberlite
Types:
|
EJF: Early Joli Fou Kimberlite; Pense: Pense Kimberlite;
RVK: Reworked Volcaniclastic Kimberlite,
|
|
|
FG VK: Fine Grained
Volcaniclastic Kimberlite, P1: Early Pense Kimberlite
|
2.
|
Drilled tonnes are
calculated using the callipered drillhole volumes and the average
OS Kimberlite densities (EJF: 2.21 gcm-3; Pense: 2.22
gcm-3)
that were used in the
Feasibility Study. These are equivalent to dry tonnes.
|
3.
|
Commercial diamonds
are defined as diamonds that will not pass through a +1 DTC screen,
which has round apertures of 1.09 millimetres.
|
4.
|
cpht: diamond grade
in carats per hundred tonnes.
|
5.
|
Weighted average
values.
|
The LDD program included twelve 24 inch holes totaling 2,560.50
metres of drilling that sampled a total of 1,028.53 metres of
kimberlite units within the OS Kimberlite. A map of the LDD hole
positions of this program, in relation to all other drilling and
underground bulk sampling, is available on the Company website:
www.shoregold.com. All the EJF and most of the Pense grades determined from the LDD
intersections exceed the cut-off grades that discriminate ore and
waste kimberlite in the OS open pit of 2.54 cpht for EJF and 3.78
cpht for Pense, as used in the FS.
Preliminary calculations using all available LDD and underground
data, suggest that a significant quantity of diamond bearing
kimberlite can be added to the OS Indicated Resource category in
the still to be completed revised Mineral Resource estimate; this
is conceptual in nature and the actual estimate of Indicated
Mineral Resources in the OS Kimberlite will only be determined by
the revised Mineral Resource estimate scheduled to be completed in
the coming months.
The largest stones recovered from these samples are: 3.25 carats
(White LDD-141-15-019 EJF), 1.15 carats (Pale Brown LDD-141-15-023
EJF), 1.09 carats (White LDD-141-15-024 EJF) and 1.04 carats (Pale
Brown LDD-141-15-020 EJF). The presence of these greater than one
carat stones in this relatively small diamond parcel supports the
coarse size frequency distribution of the diamond population in the
OS Kimberlite. An image of the ten largest stones recovered from
this LDD program is available on the Company website:
www.shoregold.com. Some 45 percent of the diamonds recovered are
white, with the balance dominated by pale brown and brown stones, a
small component of grey and five yellow stones. The diamond shapes
are dominated by dodecahedra, octahedra and irregularly shaped
fragments. Rare cubes and macles are also present.
The Mineral Reserve estimate of the 2011 Feasibility Study has
shown that most of the diamonds in the Mineral Reserve will be
sourced from EJF kimberlite units within the Orion South
Kimberlite, with a smaller contribution from the Pense kimberlite units. These 2015 LDD results
show that the EJF samples have the best grade, highest stones per
tonne and the largest stones.
This complete set of diamond results from the recent LDD program
confirms that Foraco Canada Limited's 24 inch reverse flood large
diameter drilling system is an effective tool for the recovery of
mini-bulk samples of kimberlite for grade estimation. These results
show that this drilling method produces diamond grade results that
are comparable to those used in the Feasibility Study Mineral
Reserve Estimate. No diamond loss or breakage factor has been
applied to these results, although some diamond breakage inevitably
occurs with all LDD methods. A more in depth comparison of the
diamond results from the current and previous LDD programs will be
conducted as part of the Revised Mineral Resource estimate on Orion
South.
The large diameter drill rig disaggregates the kimberlite using
a tricone bit and the broken kimberlite is returned to surface by
the reverse flood method, which pumps a slurry containing the
kimberlite into a cyclone, which deposits the material onto a
vibrating 0.85 millimetre screen and all plus 0.85 millimetre
material is fed from the screen into cubic metre bulk bags. The
bulk bags are sealed with numbered seals and delivered by truck to
Rio Tinto Canada Diamond Exploration Inc's. Thunder Bay Mineral
Processing Laboratory (ISO 9001: 2008 Certified) in loads of
approximately 20 tonnes. This laboratory was chosen for the
macrodiamond (+0.85 millimetre square mesh) 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 diamond recovery process at Thunder Bay Mineral Processing
Laboratory begins with on-site processing at its plant in
Stanley, Ontario. The bulk
sample plant is rated at 10 tonnes per hour and includes an ore
preparation circuit to scrub and size sample material. The
processed sample is subsequently run through a Dense Media
Separator ("DMS") cyclone to generate the high density "Sinks"
material, which is collected and labeled as "Concentrate" for
further processing through the Recovery circuit. The plant
also has a high pressure rolls crusher ("HPRC") re-crush circuit to
re-process lighter "Float" material. The Recovery circuit
consists of an Ultrasort SW-3 X-ray sorter to produce a final
"Accepts" concentrate from which any diamonds are subsequently
removed by hand during the final Observation phase in secure
facilities at Thunder Bay Mineral Processing Laboratory. As
part of observation, X-ray reject materials are scanned to ensure
full recovery. The quality program for this project includes
regular tracer tests to confirm DMS cyclone separation density,
spiking every sample with density tracers or faceted natural
diamonds of varying sizes to ensure complete recoveries and audits
of sample reject material. All 97 samples from the OS LDD project
processed at the Thunder Bay Laboratory were spiked using either
distinct, facetted natural diamonds or synthetic tracers for QA/QC
purposes. The Laboratory achieved a 100 percent recovery rate
for all spikes and tracers. A total of 16 Float audits were
conducted. The Floats include +0.85-6.0 mm size fraction that is
rejected by the DMS and does not pass through the diamond recovery
process. Five stones with a combined carat weight of 0.1140 carats
were recovered. In addition 16 samples of the 1.0-2.0 mm magnetic
fraction were audited. The magnetic fraction includes material that
does not pass through the final diamond recovery process. Ten
stones with a carat weight of 0.2365 carats were recovered. These
audit results are not significant and are well within recovery
tolerances acceptable for Mineral Resource estimation.
In early June 2015, A.C.A. Howe
International Limited Mining and Geological Consultants ("Howe")
conducted an on-site third party audit of the LDD procedures, chain
of custody and data collection procedures. In addition, Howe
visited the Thunder Bay Mineral Processing Laboratory to review the
sample processing procedures and protocols, including chain of
custody and sample integrity. Howe concluded that the LDD program
and sample processing were conducted at a high standard and that
the results generated from this work program are satisfactory under
National Instrument 43-101 of the Canadian Securities
Administrators (NI 43-101) for the purposes of diamond Mineral
Resource estimation.
Senior Vice President Exploration and Development, George Read, further commented: "These diamond
results from the LDD holes in Orion South confirm that this 24 inch
Foraco drill is a valid sampling method for grade estimation of
these Fort a la Corne Kimberlites. This drilling system, combined
with the rigorous diamond recovery methods at the Thunder Bay
Mineral Processing Laboratory, has produced results that will
enable accurate grade estimation for the Revised Resource estimate
on Orion South. 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 FS with a revised mine plan, where Orion
South is mined first. Preliminary calculations suggest that such an
optimised FS, 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."
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 ability to
consider previous LDD holes that were outside the OS Indicated
Resources; the anticipated completion of a Revised Feasibility
Study and a revised Mineral Resources estimate; the anticipated
upgrade of Inferred to Indicated Resources; the anticipated
improvement in the Mineral Resource estimate; the re-optimization
of the OS open pit; the revised mine plan; the optimization of the
Feasibility Study; the reduction of pre-production capital costs
and the time to achieve diamond production; 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;
the Mineral Resource estimates for the Star and OS Kimberlite
deposits; Inferred Resources for the Star and OS 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 the anticipated upgrade of
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.