X hits on this document

326 views

0 shares

0 downloads

0 comments

101 / 124

UG

RE

LDD

UG/LDD

RE/LDD

UG/RE

4.98

4.77

1.81

2.75

2.64

1.04

9.80

9.07

6.05

1.62

1.50

1.08

2.76

2.09

2.12

1.30

0.99

1.32

factor to be reasonable and appropriate for the Star Resource Estimate. The calculated adjustment factor of 1.62 was applied across the model for all units. P&E believes the adjustment factor to be reasonable and appropriate for the Star resource, but also noted that deficiencies remain regarding larger stones reported for the LDD data. P&E therefore consider a factor of 1.62 to be conservative.

Table 16.4: Size fraction diamond grade ratios for the EJF Inner area

16.11 DIAMOND VALUATION

In March, 2008, Shore commissioned WWW to update their diamond valuation of November 5, 2007, using the latest WWW price book. The exercise involved re-pricing samples that were valued in December, 2004, February, 2005, February, 2006 and October, 2007 and producing a model of the average price (News release June 9, 2008). The results were provided by WWW on March 13, 2008. Variable diamond prices were provided by kimberlite unit relative to the WWW March 11, 2008 pricebook. On February 23, 2009 WWW stated:

Size Fraction +4.75

  • -

    4.75 +1.70

  • -

    1.70

Grade (cpht)

Ratio

“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.”

Kimberlite

Carats

Parcel Price

Model Price

Minimum Price

High Price

Lithology

(US$/carat)

(US$/carat)

(US$/carat)

(US$/carat)

Cantuar

1,126.32

$193

$309

$247

$420

Pense

1,410.73

$79

$103

$88

$126

EJF

7,123.10

$115

$167

$138

$216

MJF-LJF

80.09

$84

$105

$75

$152

Total

9,740.24*

$120

$172

$141

$225

Table 16.5 summarizes those prices determined by WWW and used by P&E for this Mineral Resource Estimate. The combined bulk sample totalling 10,309.07 carats was re-priced by WWW at US$1,256,541 using the March 11, 2008 pricebook, giving a parcel price of US$120 per carat. A range of diamond price scenarios were provided by WWW for the Star Kimberlite diamond parcels. Relative to the October, 2007 valuation the re-valuation showed increases in the model prices between 103 percent and 106 percent, while the parcel prices exhibited increases between 113 percent and 116 percent.

Table 16.5: WWW modelled 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 modelled prices to ensure the integrity of the parcels and the accuracy of the modelled 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).

P&E Mining Consultants Inc. NI 43-101 Technical Report No 159 Shore Gold Inc. - Star Diamond Project Resource Estimate Update

Page 86 of 109

Document info
Document views326
Page views326
Page last viewedSat Dec 10 08:19:32 UTC 2016
Pages124
Paragraphs4911
Words42686

Comments