Figure 3-1: Claim disposition map (Shore claims - yellow; FALC JV claims – blue; Indian Reserves – brown; Parks - green; Cities - light blue: Kimberlite - light green)
All mineral dispositions covering the Star Diamond Project are held by Shore or by the FALC- JV and are in good standing. Shore and/or the FALC-JV have obtained all of the necessary exploration permits to allow exploration to proceed.
NET PROFITS INTEREST
The initial 15 claims (S-132025 to S-132039) were staked by a third party and were subsequently transferred to Shore for consideration of a three percent Net Profit Interest (“NPI”) should a positive production decision be made and the property achieve mineral production. Shore has the option to purchase the NPI for one million Canadian dollars. Seagrove Capital Corporation is the successor party holding the NPI.
The environmental status of the Star Diamond Project is detailed by Eggleston et al. (2008) and is summarized in the section below.
A Preliminary Decommissioning Plan (“PDP”) was submitted in 2007 which discussed all environmental liabilities recognized at that time for all activities conducted as part of the development of the Star Diamond Project. These activities included inter alia, the construction of
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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