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16.16 PRICE SENSITIVITIES

As a test of the sensitivity of the Star resource to market and diamond price fluctuations, the resource model was also run with the High scenario pit shell using the WWW Low and Model price scenarios. The results suggest that the Star resource is relatively insensitive to moderate diamond price fluctuations (Table 16.10).

Class

Million

Grade

Million

Tonnes

cpht

Carats

Indicated

138.5

14.4

19.9

Inferred

26.1

11.7

3.1

Indicated

146.0

13.9

20.3

Inferred

26.1

11.7

3.1

Indicated

151.7

13.5

20.5

Inferred

26.2

11.7

3.1

Table 16.10: Price sensitivity at a CAD$5.08 cut-off

Scenario

Minimum

Model

High

16.17 VALIDATION

Average unadjusted block grades for all classes were compared to the average unadjusted LDD sample grades (Table 16.11). The comparison shows that the average of the estimated blocks is very similar to the average of the sample grade. A further validation check was completed by comparing average composite grades to the grade of the block containing the composites (Figure 16.9). In general, the estimate is slightly smoothed and displays minimal bias. Comparatively high observed estimates for three blocks are a function of high grade LDD samples immediately adjacent to the block (at 150 cpht, 78 cpht and 70 cpht). The observed correlation is deemed acceptable by P&E for Resource Estimation.

Table 16.11: Comparison of average LDD batch sample grades and average estimated block grades

FACIES

Average Sample

Average Estimated

Grade (cpht)

Block Grade (cpht)

CPK

9.4

9.0

EJF Inner

10.2

10.2

EJF Outer

6.0

6.0

LJF

0.6

0.6

MJF

2.9

3.1

PPK

8.8

8.1

TOTAL

7.5

7.0

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

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