Stock Symbol: SGF: TSX
SASKATOON, SK, March 6, 2017 /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 Shore has successfully
completed significant aspects of test work towards the Updated
Feasibility Study on the Star-Orion South Diamond Project. The work
completed in recent months includes: X-ray Transmission ("XRT")
recovery of diamonds from Star pyroclastic kimberlite; ore
processing data review, diamond parcel characterization, kimberlite
particle size analysis and overburden removal investigations. These
programs investigate the use of new technology for the efficient
excavation of the open pit and improvements to the flow-sheet of
the diamond processing plant, while simultaneously reducing
pre-production capital costs and the time to initial diamond
production.
Autogenous Mill Test Work
As previously reported, 38 tonne sample of Star Early Joli Fou ("EJF") pyroclastic
kimberlite was processed by SGS Canada Inc. at their milling
facilities in Lakefield, Ontario.
Prior to the 2011 Feasibility Study ("FS") autogenous ("AG")
milling tested had only been conducted on Orion South EJF
kimberlite breccia and the FS had recommended that the AG milling
test be expanded to include the significantly harder EJF
pyroclastic kimberlite. The AG mill test work produced 31 tonnes of
milled product recovered between -32+1 millimetres. All -1.0
millimetre material reported to waste. This test work and scale up
analysis has indicated that AG milling is the appropriate method of
ore treatment for diamond liberation under large throughput
conditions of some 45,000 tonnes per day.
XRT Diamond Recovery Test Work
Some 2.8 tonnes of AG milled product was shipped to the test
facilities of TOMRA Sorting GmbH ("TOMRA") in Wedel, Germany for diamond recovery test work using
the TOMRA dual energy X-ray transmission (DEXRT) full-scale sorter.
XRT sorters are able to discriminate individual particles in the
feed through sorter, based on their degree of x-ray absorption. The
AG milled product was screened into the following size fractions:
-32+16 millimetre, -16+8 millimetre and -8+4 millimetre, which were
each spiked with specific numbers of vendor supplied natural
diamonds, graphite tracers and Shore's diamonds, processed through
the XRT sorter. Tests were completed at operational throughputs
(presently up to 120 tonnes per hour) with all diamonds and tracers
being recovered down to 4 millimetres, with very low concentrate
yields. The results of the test showed that XRT is viable as a
replacement, for +8 millimetre fractions, for dense media
separation in the re-design of the process plant, potentially
reducing capital costs of the plant, and simplifying the overall
flow sheet, leading to reduced operating costs and a smaller
environmental footprint. TOMRA engineers are currently developing
XRT sorters for use in final recovery, with proposed capability of
recovering diamonds down to +2 millimetres from Dense Media
Separator ("DMS") concentrate.
Ore Processing Data Review
Shore and DRA Americas Inc. ("DRA") have commenced a detailed
review of ore processing data in preparation for a redesign of the
diamond processing plant flow sheet, particularly to incorporate
new technology such as XRT diamond sorters, laser diamond sorters
and near infra-red ("NIR") waste rock sorters. In addition, DRA
have recently been contracted to conduct a detailed review of all
autogenous milling, comminution and liberation testwork previously
conducted by Shore and contractors on kimberlite samples for
diamond liberation.
Diamond Parcel Characterization and Kimberlite Particle Size
Analysis
Work is currently underway at the Saskatchewan Research Council
("SRC") to investigate new X-ray recovery sorting algorithms to
optimize the recovery of diamonds less than 8 millimetres. Smaller
diamonds (-8 millimetre) will probably be recovered using a
combination of X-ray fluorescence sorters and grease and this work
will assist in understanding the proportion of low X-ray
luminescence diamonds that will need to be recovered using grease.
Developments in X-ray sorting technologies will be used to reduce
costs the final recovery section of Shore's Processing Plant in an
updated Feasibility Study. Additional processed kimberlite settling
testwork is currently underway at the SRC to investigate the
hydrodynamic properties of the -1 millimetre fine material that
will be deposited in the Processed Kimberlite Containment Facility
("PKCF") of the Project.
Overburden Removal Investigations
Takraf GmbH has been engaged to investigate the site conditions
and geotechnical properties of the till to determine the
suitability of the overburden for removal via bucket wheel
excavator. The geotechnical properties of the sand and clay will
also be investigated to determine if this material is better suited
for excavation via bucket wheel, as opposed to the current thoughts
of using large dozers with dozer traps.
Senior Vice President Exploration and Development, George Read, states: "Work has been completed
and is active on a number of fronts towards the Updated Feasibility
Study. This Updated Feasibility Study will be based on the 55.4
million carat Revised Resource Estimate completed in 2015. Capital
and operating cost savings are possible through the application of
proven technology to the overburden removal and a redesign of the
diamond processing plant, principally using XRT technology for
recovery of diamonds from the +8 millimetre size fractions."
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 Revised
Resource Estimate for the Star-Orion South Diamond Project dated
November 9, 2015 provided an updated
Mineral Resource Estimate for the Star and Orion South kimberlite
deposits: Indicated Mineral Resource of 393 million tonnes
containing 55.4 million carats of diamonds at a weighted average
price of US$210 per carat. In
addition to the Indicated Mineral Resource Estimate, the Star and
Orion South Kimberlites include Inferred Resources containing 11.5
million carats.
All technical information in this press 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 Shore's objectives
for the ensuing year including, the optimization of the feasibility
study, anticipated capital and operating cost savings and the
anticipated positive change in the economic model for the Project;
the aim of Shore to undertake additional studies and the potential
updating of the Feasibility Study.
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.