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    • obtain mechanical equipment budget pricing;

    • develop equipment list for production rates;

    • develop general arrangement and site plan drawings;

    • conduct high-level trade off study to evaluate the potential benefit of autogenous milling versus conventional crushing circuits; and

    • complete trade-off studies for various process and equipment options.

      • 17.5

        STAR-ORION SOUTH DIAMOND PROJECT PROPOSAL

In November, 2008, Shore announced that a Project Proposal for the Star-Orion South Diamond Project was submitted to the Environmental Assessment Branch of the Saskatchewan Ministry of Environment. The Project Proposal is the first step in the EIA process and initiates discussion with regulators and the public about the implications of the project. The Project Proposal contains a detailed project description of the Star-Orion South Diamond Project, which includes an open pit on the Star Kimberlite (based on the NI 43-101 compliant Resource Estimate - SGF News Release February 23, 2009), a potential second pit at Orion South (dependent on the results of underground bulk sampling and large diameter drilling), a common processing plant and associated infrastructure. The project footprint is estimated to be between 3,000 and 4,000 hectares (or 2.3 to 3.0% of the Fort à la Corne Provincial Forest), depending on the inclusion of Orion South. The Project Proposal document includes considerable detail under the principal headings of: Potential Development Description; Description of the Environment; Potential Environmental Impacts and Mitigative Measures; Monitoring; Decommissioning, Reclamation and Closure; Stakeholder Engagement; and Employment and Procurement, in addition to a series of maps which show the conceptual project layout and extent of the proposed mine infrastructure.

The information contained in the Project Proposal is intended to provide the Ministry of Environment with sufficient project and environmental information to initiate the EIA process and develop Project Specific Guidelines (PSGs). The PSGs outline the scope of the EIA. The satisfactory completion of the EIA, which will have assessed the environmental, social and economic impacts of the proposed Project, will then be the basis of potential Ministerial Approval, which if, granted, would allow the Company to consider a production decision. In the event of a positive production decision, the Company could apply for the requisite construction and other permits. The project description presents project alternatives for discussion with Provincial and Federal regulators and the public, particularly the neighbouring communities. Throughout the EIA process, these alternatives will be assessed from an environmental, social and economic perspective to determine an optimized project.

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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