Conducting a Prefeasibility on the Star Kimberlite in Central Saskatchewan
The Star Diamond project is located 60 kilometres east of Prince Albert, Saskatchewan. Shore’s Star Kimberlite. The project is 100% owned by Shore.
Subsequent to the valuation of a 3,050 carat diamond parcel, a $116 million financing and the completion of a 27,800 tonne bulk sample from which a total of 4,049 carats was recovered, Shore Gold announced the commencement of a $43 million prefeasibility study on the Star Diamond Project. The aim of the prefeasibility study is to determine a NI43-101 compliant mineral resource for the Star Diamond Project by the end of 2007.
The prefeasibility study presently underway includes the extraction of an additional 15,000 tonnes of kimberlite from the underground workings on the 235 metre level. In order to map the shape and internal structure of the Star kimberlite, a 125 hole, PQ (75 millimetre) core drilling program has been completed as part of the prefeasibility study.
A large diameter drilling (LDD) program has been initiated to recover mini-bulk samples for grade determination across the Star Kimberlite. Some 72 holes (17,000 metres) are planned for the LDD program which is estimated to recover a total of 10,000 to 12,000 tonnes of kimberlite from holes drilled on a grid pattern across Star. These kimberlite bulk samples will be processed through the on-site DMS.
In late October this year Shore acquired Kensington Resources Ltd. in a friendly merger, by plan of arrangement. This merger gives Shore Gold a 42.245 percent interest in the adjacent Fort a la Corne Joint Venture (FALC-JV). Due diligence on Kensington’s data has convinced Shore’s geologists and management of the great economic potential of the abundant, large diamondiferous kimberlites of the FALC-JV. Shortly after the merger with Kensington, Shore announced a voting agreement with Cameco, which gives Shore a majority vote in the FALC-JV. In early November Shore announced a $120 million financing in which Newmont participated to regain their 9.9% share in Shore Gold Inc.