Shore purchased and commissioned a Bateman Engineering-designed process plant that started receiving kimberlite in late January, 2004. The process plant consists of a 30 tonne per hour crushing circuit, and a ten tonne per hour Dense Media Separation (DMS) circuit which utilizes a 250 millimetre diameter separating cyclone, and a recovery section consisting of a Flow Sort® X-Ray diamond-sorting machine and grease tables. All kimberlite was stored in individual batch samples in a dedicated storage facility.
Mineral Resource Estimate
The Mineral Resource Estimate prepared by P&E includes kimberlite volume, density and tonnage data collected during the surface and underground core drilling program comprising 285 surface core holes (18,259 metres of kimberlite) and 213 underground core holes (16,863 metres of kimberlite), diamond and tonnage data from underground bulk sampling (66,545.09 dry tonnes, 10,547.87 carats1). Diamond grade and tonnage estimates were also derived from 103 LDD holes, of which 96 LDD holes reported diamond sampling data. Diamond sampling data consisted of 11,662.87 processed tonnes and 1,416.69 carats. Based on a review of data supplied by Shore, P&E is of the opinion that the data are acceptable for Mineral Resource Estimation.
Minimum Price (US$/carat)
High Price (US$/carat)
Cantuar Pense EJF MJF-LJF Total
1,126.32 1,410.73 7,123.10 80.09 9,740.24*
$193 $79 $115 $84 $120
$309 $103 $167 $105 $172
$247 $88 $138 $75 $141
$420 $126 $216 $152 $225
Shore commissioned WWW International Diamond Consultants Ltd. (WWW) in Antwerp, Belgium to complete valuation studies of the Star diamond parcels. Variable diamond prices were provided by kimberlite unit relative to the WWW March 11, 2008 price book. On February 23, 2009 WWW stated: "It should be noted that current diamond prices have been substantially reduced by the present world financial crisis with rough prices falling from their peak in August, 2008 by around 40%, depending on size and quality. That said, and acknowledging the high degree of uncertainty around the diamond market and other commodities, WWW’s view of future supply and demand fundamentals is positive in relation to current prices. However, we do not see prices returning to March, 2008 levels for some considerable time." The table below summarizes those prices determined by WWW and used by P&E for this Mineral Resource Estimate.
WWW modeled diamond parcel value by kimberlite unit.
Notes: *Diamonds weighing 509.25 carats (mixed EJF-Cantuar material) and 59.58 carats (surface stockpile clean-up) have not been included in the diamond populations used for the determination of these modeled prices to ensure the integrity of the parcels and the accuracy of the modeled prices. This explains the difference between this total of 9,740.24 carats and the overall parcel total of 10,309.07 carats (which was the carat total at the time of valuation).
1 Tonnages and carats utilized in the Mineral Resource estimate differ from total tonnes mined and total carats recovered as clean-up samples were not utilized in the Mineral Resource estimate. In addition, the February 27, 2009 News Release mistakenly included batch 151 as a drift sample when it was actually a clean-up sample (443 tonnes and 49.7 carats). The previous Mineral Resource completed by AMEC on June 9, 2008 utilized 69,056 dry tonnes and 10,582 carats. The different tonnages and carats utilized is the result of the AMEC resource estimate totals including all clean-up batches except three which did not have results at time of resource estimate.
P&E Mining Consultants NI 43-101 Technical Report No 159 Shore Gold - Star Diamond Project