that a producer would have received for that parcel in Antwerp, Belgium at the time of the valuation.
During the third quarter of 2007, Shore commissioned WWW to carry out a final valuation on a 10,309.07 carat diamond parcel recovered from its completed bulk sampling program on the Star Kimberlite. The valuation was completed on 4,359.19 carats of new stones, and the present day pricing was assigned to the 5,949.88 carats that were previously valued. On November 5th, 2007 Shore announced WWW applied modelled values for the parcel that ranged between US$97 and US$300 per carat for the different kimberlite lithologies. The entire parcel was given a present day value of US$1,084,443 that would give an actual price for the parcel of US$105 per carat.
In March, 2008, Shore engaged WWW to re-value the Star diamond parcel due to the positive performance of rough diamond prices in early 2008. The revised modelled diamond prices were then used in the subsequent Mineral Resource Estimate completed by AMEC in June, 2008. The re-priced diamond values are summarized in Table 5.2.
Table 5.2: March 13, 2008 re-price of Star diamond parcel
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.
INITIAL RESOURCE ESTIMATE – AMEC JUNE 9, 2008
During the 2005 to mid-2008 period, a Mineral Resource database was established from data collected during the surface and underground core drilling program comprising 270 surface core holes (18,020 metres of kimberlite) and 213 underground core holes (16,863 metres of kimberlite), diamond and tonnage data from underground bulk sampling (69,056 dry tonnes, 10,582 carats and 80,669 stones) and diamond and tonnage data from the mini-bulk samples recovered from the extensive LDD program on Star (88 holes, 8,447 metres of kimberlite, 18,924 dry tonnes, 1,336 carats and 14,433 stones).
This database was utilized by AMEC in the preparation of an independent NI 43-101 compliant, risk adjusted, Mineral Resource Estimate (the “AMEC 2008 Resource Estimate”) for the explored portion of the Star Kimberlite (Eggleston et al., 2008). The estimate was prepared using a 1.0 millimetre bottom diamond size cut-off and considered all kimberlite shallower than 71 metres above sea level or to a depth of 350 metres below surface. The AMEC 2008 Resource Estimate utilized re-priced 2008 diamond values modelled by WWW (see Table 5.2). As shown in Table 5.3 the AMEC Star Mineral Resource included an Indicated Resource of 122.7 million tonnes at a grade of 13.6 cpht and an Inferred Resource of 30.3 million tonnes at a grade of 13.1 cpht.
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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