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program on the Star Kimberlite maximized the upgrading of any Inferred Resources into Indicated and/or Measured Resources categories.

Shore supplied a database containing results from 88 LDD holes.

Based on the data available and the derived variography applied to a large-block model, the study recommended that the following guidelines be used for resource delineation:

  • an initial LDD spacing of 200 m x 200 m;

  • Indicated Resources – a minimum of three samples from a minimum of two drillholes

within 200 m of the block centre; and

  • Inferred Resources – a minimum of three samples from a minimum of two drillholes

within 400 m of the block centre.

The study also concluded that, where possible, additional work moving forward should attempt to further delineate and define unique sub-domains within the major kimberlite bodies. A more comprehensive review of kriging strategies was also recommended, in order to minimize any potential conditional bias.

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

Page 42 of 109

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