Stock Symbol: SGF: TSX
SASKATOON, Nov. 9, 2015 /CNW/ - George H. Read, P. Geo., Senior Vice President
Exploration & Development of Shore Gold Inc. ("Shore" or the
"Company"), is pleased to announce a significant increase in the
estimated Mineral Resources for the Star - Orion South Diamond
Project (the "Project").
Highlights
- Indicated Mineral Resource on Star has increased 38 percent to
28.2 million carats and the grade has increased 11 percent to 15
cpht
- Indicated Mineral Resource on Orion South has increased 134
percent to 27.1 million carats and the grade has increased 1
percent to 14 cpht
Revised Mineral Resource Estimate
George Read, stated: "Shore is
very pleased with the substantial increase in tonnes, grade and
carats in the Indicated Resource category of this Revised Mineral
Resource estimate, which has been rigorously prepared to diamond
industry standards using meticulously reviewed datasets. We are
also pleased to have diamond expert Mr. Peter Ravenscroft supervise this mineral
resource update after the 2015 LDD drilling of Orion South as he
not only brings over 30 years of diamond resource estimation
expertise with some of the major diamond companies in the world,
but also clearly aligns our Star - Orion South Diamond Project
Mineral Resource estimate with established diamond industry
standards. Estimation of this Revised Mineral Resource has taken a
more pragmatic approach with careful consideration of the
geological controls on diamond distribution. Particular attention
has been given to variations in diamond size frequency
distribution, in addition to diamond grade. This approach has
resulted in a substantial increase in the Indicated Resources in
both Star and Orion South. The Star – Orion South Diamond Project
now has one of the largest Indicated Resources of any diamond
project that is not in development. The diamond populations of the
EJF and Cantuar kimberlite units at Star and the EJF kimberlite
unit at Orion South have significantly coarse diamond size
frequency distributions from which we can anticipate the recovery
of large, high quality (Type IIa) diamonds in future
production."
The scientific and technical information contained in this press
release has been prepared and verified by A.C.A. Howe International
Limited ("Howe"), under the supervision of Mr. Daniel C.
Leroux, M.Sc., P. Geo. and the Mineral Resource estimation
methodology under the supervision of Peter
Ravenscroft, FAusIMM, of Burgundy Mining Advisors Ltd., an
independent mining consultant, and a Qualified Person ("QP") within
the meaning of National Instrument 43-101 of the Canadian
Securities Administrators. This Revised Mineral Resource estimate
uses diamond industry standard methods which are rigorously applied
to the Star and Orion South evaluation data, acknowledging the
significant control that fundamental kimberlite geology has on the
distribution of diamonds within these deposits. The initial goal of
the Revised Mineral Resource estimate was to upgrade the
significant proportion of Inferred Resources estimated for Orion
South to the Indicated Resource category following a 12-hole Large
Diameter Drilling program completed earlier this year. However, a
detailed review by a new QP of previous Mineral Resource estimates
and adoption of a more appropriate resource estimation methodology
required that this approach also be applied to the Star Kimberlite.
This news release documents the Revised Mineral Resource estimates
for Star and Orion South in Table 1.
Table 1. Revised Mineral Resource Estimates for the Star and
Orion South Kimberlites
|
|
|
Star Kimberlite
Revised Mineral Resource Estimate
|
|
Orion South
Kimberlite Revised Mineral Resource Estimate
|
Resource
Category
|
Kimberlite
Unit
|
Tonnes
x1000
|
Grade
cpht
|
Carats
x1000
|
|
Resource
Category
|
Kimberlite
Unit
|
Tonnes
x1000
|
Grade
cpht
|
Carats
x1000
|
Indicated
|
LJF
|
15,986
|
2
|
277
|
|
Indicated
|
EJF Outer
|
44,570
|
13
|
5,626
|
Indicated
|
MJF
|
18,906
|
6
|
1,183
|
|
Indicated
|
EJF Inner
|
96,317
|
19
|
18,348
|
Indicated
|
EJF Outer
|
47,152
|
15
|
6,847
|
|
Indicated
|
Pense
|
59,273
|
5
|
3,179
|
Indicated
|
EJF Inner
|
84,444
|
19
|
15,807
|
|
Indicated
|
TOTAL
|
200,160
|
14
|
27,153
|
Indicated
|
Pense
|
13,822
|
14
|
1,906
|
|
Inferred
|
LJF
|
27,836
|
1
|
198
|
Indicated
|
Cantuar
|
12,700
|
18
|
2,229
|
|
Inferred
|
EJF Outer
|
36,188
|
12
|
4,361
|
Indicated
|
TOTAL
|
193,010
|
15
|
28,249
|
|
Inferred
|
Pense
|
2,754
|
5
|
144
|
Inferred
|
LJF
|
11,500
|
2
|
175
|
|
Inferred
|
P3
|
5,302
|
9
|
477
|
Inferred
|
EJF Outer
|
30,286
|
13
|
3,926
|
|
Inferred
|
TOTAL
|
72,080
|
7
|
5,180
|
Inferred
|
Pense
|
8,828
|
14
|
1,196
|
|
|
|
|
|
|
Inferred
|
Cantuar
|
6,335
|
17
|
1,088
|
|
|
|
|
|
|
Inferred
|
TOTAL
|
56,949
|
11
|
6,385
|
|
|
|
|
|
|
Table Notes apply to Tables 1 and 2
(1)
|
Canadian Institute of
Mining and Metallurgy ("CIM") definitions were followed for
classification of mineral resources.
|
(2)
|
Star Kimberlite
Units: Cantuar, Pense, Early Joli Fou (EJF), Mid Joli Fou (MJF)
& Late Joli Fou (LJF)
|
(3)
|
Orion South
Kimberlite Units: P3, Pense, Early Joli Fou (EJF) & Late Joli
Fou (LJF)
|
(4)
|
Mineral Resources are
constrained within a Whittle optimized pit shell.
|
(5)
|
Mineral Resources
which are not Mineral Reserves do not have demonstrated economic
viability. The estimation of Mineral Resources may be materially
affected by environmental, permitting, legal, title, taxation,
socio-political, marketing or other relevant issues.
|
(6)
|
There is no guarantee
that all or any part of the Mineral Resource will be converted into
a Mineral Reserve.
|
(7)
|
An effective 1
millimetre lower cut-off for diamond recovery is assumed, and only
diamonds larger than +1 DTC diamond sieve are included.
|
(8)
|
Grade values are
rounded to nearest whole number.
|
(9)
|
The effective date of
the Revised Mineral Resources estimate is November 6,
2015.
|
(10)
|
The EJF Inner and
Outer kimberlite units for both deposits are based on detailed
kimberlite geology recorded from the core logging of the pattern
drilling program. The EJF Inner represents coarser grained EJF
kimberlite that occurs within the volcanic crater and the EJF Outer
includes finer grained EJF kimberlite that lies on and outside the
crater rim. This Revised Mineral Resource estimate acknowledges
that the transition from Inner to Outer is geologically
gradational.
|
Mineral Resources Estimation Methodology
Revised grade estimates at Star and Orion South have been based
on a diamond industry standard approach using alignment of sample
diamond size frequency distributions. Peter Ravenscroft
explains: "This approach has allowed for the development of
unbiased grade estimates that take into account the effects of
using necessarily small samples in a diamond deposit with
relatively low grade but coarse stone size. At Orion South,
it has also provided a means of resolving sampling results from
several sampling campaigns with different drilling methodologies
and different sample plant flowsheets. Final alignment with
underground bulk sample results and block model interpolation with
appropriate smoothing has resulted in robust estimates of grade at
a required level of detail for feasibility study of the Star and
Orion South deposits."
Economic Assumptions
CIM standards and Securities Commission disclosure regulations
require that a Mineral Resource can only be declared on a mineral
deposit which has "reasonable prospects for eventual economic
extraction". The reported Mineral Resource for Star and Orion South
are constrained using a Whittle pit optimization. The Mineral
Resources reported in Table 1 comprise the kimberlite that is
constrained within the optimized Whittle pit shell and exceeds the
economic cut-offs as determined by the parameters in Table 2.
Diamond values for this resource statement are based on the
June 2015 High modeled prices
determined by WWW International Diamond Consultants Ltd ("WWW") –
see SGF News Release October 21,
2015. This Revised Mineral Resource estimate uses a 1.0
millimetre bottom cut-off size, including only stones recovered
larger than +1 DTC diamond sieve, and considers all kimberlite
above 90 metres above mean sea level or to a depth of 330 metres
below surface in Star and 360 metres below surface in Orion
South.
Table 2. Economic Parameters
Exchange
Rate
|
Cdn$1.00 =
US$0.80
|
Stripping
Cost
|
Cdn$1.01/tonne
|
Ore Mining
Cost
|
Cdn$1.75/tonne
|
Waste Mining
Cost
|
Cdn$1.66/tonne
|
Processing
Cost
|
Cdn$3.01/tonne
|
General &
Administration Cost
|
Cdn$2.48/tonne
|
Overall Pit Slope
Angle
|
23°
|
Internal
Cut-off
|
C$5.49/tonne
|
Qualified Persons
Peter John Ravenscroft, FAusIMM,
is the owner of Burgundy Mining Advisors Limited based in
Nassau, Bahamas. He has a
Bachelor of Science degree in Mathematical Statistics from the
University of Cape Town in 1979,
and the equivalent of a Masters degree in Geostatistics from the
Ecole des Mines de Paris in 1985.
Peter has practised his profession for 35 years and has been
directly involved in resource and reserve estimation, mine planning
and project evaluation for a wide range of commodities. This
includes more than ten diamond properties in Africa, Australia and Canada while working 7 years for De Beers and
17 years in technical and executive roles for Rio Tinto, where at
one point he was Competent Person for all diamond operations in the
company. As a result of his experience and qualifications, he is a
Qualified Person as defined in National Instrument 43–101 -
Standards of Disclosure for Mineral Projects (NI 43–101).
Daniel C. Leroux, M.Sc., P.Geo.
is the Vice President and Senior Geologist with Howe based in
Toronto, Ontario Canada. He is a
member of the Association of Professional Geoscientists of
Ontario ("APGO") and the
Association of Professional Engineers and Geoscientists of
Saskatchewan ("APEGS"). He
graduated from Laurentian University
with both a Bachelor of Science degree in Geology (1993) and a
Master of Science in Mineral Exploration (2013),
respectively. Mr. Leroux has practised his profession for
over 24 years, of which he has a total of 20 years of direct
experience with diamond projects located in Canada, Africa, Russia and South
America, including managerial responsibilities for all
various exploration stage diamond projects from conceptual
grassroots exploration projects to bulk sampling, diamond resource
estimation and pre-feasibility to feasibility studies on advanced
diamond projects. As a result of his experience and
qualifications, he is a Qualified Person as defined in National
Instrument 43–101 - Standards of Disclosure for Mineral Projects
(NI 43–101).
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.
Next Steps
Shore will file a Technical Report in respect of the Revised
Mineral Resources estimate as soon as it is available, and in any
event within the regulated 45 day period after this news release.
The Revised Mineral Resource estimate will now be incorporated into
a re-optimized open pit mine plan for the Project, which will
include a re-evaluation of mineral reserves and an economic
assessment based thereon. It is anticipated this work will be
completed during 2016 and will result in a revised Feasibility
Study including a revised statement of Mineral Reserves for the
Project, if warranted, and an economic assessment based thereon.
Accordingly, the mineral resources and economic assessment
previously disclosed by Shore for the Project should no longer be
relied upon.
The Project
The 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.
About Shore Gold Inc.
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 or mineral resources constitute
forward-looking statements.
Forward-looking statements in this press release include, but
are not limited to statements with respect to the Revised Mineral
Resources Estimate; pricing information and other assumptions and
parameters; the upgrade of Inferred to Indicated Resources; the
improvement in the Mineral Resource estimate; the re-optimization
of the Star and Orion South open pits; the inference that large
high quality diamonds will be recovered; publication of the
Technical Report; the aim of Shore to undertake additional studies
and the potential upgrading of the feasibility study and revised
statement of mineral reserves and economic assessment.
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.