INTERPRETATIONS AND CONCLUSIONS
The following conclusions are based on available reports, the results of Shore’s Phases 1, 2 and 3 underground bulk sampling and surface exploration programs, and results from the various Star Kimberlite LDD mini-bulk sampling programs.
the bulk sample program recovered a total of 10,966 carats of commercial sized diamonds >0.85 mm from a total of 75,435.68 dry tonnes of kimberlite material (Star and Star West) processed through Shore’s batch sampling process plant.
the LDD diamond sampling data used by P&E to update the Resource Estimate consisted of 1,416.69 carats recovered from 11,662.87 processed tonnes (19,977.59 in-situ tonnes).
overall, the Howe 2009 audit exercise revealed a well-operated and documented process for the treatment of bulk samples. There were no issues of sample integrity and the audit results indicated a high efficiency of diamond recovery. This audit exercise did not extend beyond the bulk sample processing and diamond results.
since 2007, Howe carried out several site visits in order to undertake an extensive review of the geoscientific data being collected by Shore. Howe conducted extensive reviews and audits of core drilling geological logs, examined kimberlite core and kimberlite samples collected from the underground bulk sampling program, LDD sampling logs and LDD sample chips, underground mapping, and an extensive review and audit of all underground and LDD sample processing data.
due to the positive performance of rough diamond prices in early 2008, the Star diamond parcel was revalued by WWW in March, 2008, and the revised modelled diamond prices have been used in the Resource Estimate that is the subject of this Technical Report. WWW modelled the value of the 9,740.24 carat parcel and reported that the average model value of US$172 lies between a ‘minimum’ of US$141 and a ‘high’ of US$225. The ‘high’ price valuations in the 2008 re-valuation were used for pit shell generation. P&E has accepted the WWW modelled values for diamonds, but has not independently verified the modelled values.
the WWW valuation noted that the High value scenario does not represent maximum values, and that, for modelling purposes, the same average price was applied to all stones of six carats or higher. Due to the conservative nature of the WWW price models, where the upside potential of the coarse size frequency distribution was not fully reflected, P&E used the WWW High scenario for reporting of the updated Resource Estimate.
the total database utilized for the P&E (2009) Resource Estimate, including 285 surface diamond core drillholes, 213 underground diamond core drillholes, 96 LDD holes that produced 1,416.69 carats, and 66,545.09 tonnes of underground bulk sample material that produced 10,547.87 carats.
P&E has reviewed drilling procedures, surveying, sampling, sample processing, density, and the database and has found no significant deficiencies. In addition, P&E collaborated with Howe in late 2008, to have Howe conduct an independent audit of both Shore’s existing sample
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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