Shore Gold Inc. (Shore) commissioned P&E Mining Consultants Inc. (P&E) to prepare an independent National Instrument 43-101 compliant Technical Report on its Star Diamond Project situated in the Fort à la Corne (FALC) area of Saskatchewan, Canada. This report updates the first-time Mineral Resource Estimate prepared by AMEC Americas (AMEC) in June 2008.
The Star Diamond Project encompasses the Star Kimberlite, which straddles a mineral disposition boundary between ground that is held 100 percent by Shore, and ground that is held by the Fort à la Corne Joint Venture (FALC-JV), between Kensington Resources Ltd., a wholly- owned subsidiary of Shore (60 percent) and Newmont Mining Corporation of Canada Limited (Newmont) (40 percent). The Star Diamond Project is operated by Shore, and is being explored and developed as a single entity.
The updated Mineral Resource Estimate presented in this Report supersedes all previous estimates.
Location and Access
The Star Diamond Project is located in the Fort à la Corne Provincial Forest about 60 kilometres east of Prince Albert, Saskatchewan. Good access is provided by paved highways, a grid gravel road system and an extensive network of forestry roads, passable by four-wheel drive and high- clearance two-wheel drive vehicles all year round.
The Star Kimberlite is situated on the north side of the Saskatchewan River, which can be crossed by bridge at either Prince Albert, to access the property from the west, or at Wapiti, north of Melfort to access the area from the east.
A 230 kilovolt power line runs 9.6 kilometres south of the area, and a larger-capacity 230 kilovolt power line is located 21 kilometres to the east. A pool of mining personnel is available from the many small towns in the area.
The climate in this region of Saskatchewan ranges from warm dry summers with temperatures averaging 23°Celsius to cold dry winters with temperatures averaging -11°Celsius. Precipitation averages 405 millimetres annually.
Tenure and Surface Rights
The Star Kimberlite and associated infrastructure are located within mineral disposition S- 132039 in Section 18 of Township 49, Range 19. Township 49 is located within the Rural Municipality of Torch River. This mineral disposition is, in turn, located within grouped claim block GC#45826, which comprises 23 contiguous mineral dispositions totalling 9,280 hectares. Initially, 15 claims (S-132025 to S-132039) were staked by a third party, which retains a 3 percent net profit interest in the event the mineral disposition area achieves mineral production. Four of these initial 15 mineral dispositions are located within grouped claim block GC#45826. Shore has the option to buy out this 3 percent net profit interest for CAD$1 million. Shore owns
P&E Mining Consultants NI 43-101 Technical Report No 159 Shore Gold - Star Diamond Project