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13.4

X-RAY CONCENTRATE AUDIT PROGRAM

In order to evaluate the final picking of x-ray concentrate by SGS Lakefield and SGS Saskatoon, final concentrate audits were completed by MSC on both underground and LDD sample batches (Table 13.2). Concentrate picking completed by SGS Lakefield and SGS Saskatoon on LDD material was audited by MSC. Auditing resulted in recovery of minor amounts of additional stones. Carats recovered in the audit process from underground batches on the Star Kimberlite added approximately 2.3% to the total carat weight. Carats recovered in the audit process from LDD batches added 1.2% of the total carat weight for Star LDD samples.

sample batches Sample Type

Batches Tested

Total Carats recovered in Batches (plant recovery)

Carats recovered in pick concentrate Audit

%

STAR UG Batches STAR LDD

111 792

4060.8 1298.2

91.75 14.95

102.3% 101.2%

Table 13.2: Final (picked) concentrate audit results from Star underground and Star LDD

Any diamonds recovered at this audit stage were reported separately by MSC and SGS Lakefield and SGS Saskatoon. The diamond counts and total carat weight for each batch sample, however, have been incorporated into a merged diamond results database containing the results for final diamond grade reporting.

13.5

INDEPENDENT LABORATORY AUDITS

Howe conducted a laboratory audit of SGS Lakefield on November 4, 2005 during Phase 1 of the underground bulk sample program. AMEC carried out a laboratory audit of MSC in November, 2007. Details of these earlier audits are presented in Eggleston et al. (2008).

From July, 2008 to December, 2008, Howe conducted an audit of the following independent laboratories (MSC and SGS Saskatoon) in order to:

  • review and audit the SGS Saskatoon facility;

  • review and audit the grease table tailings audit program (MSC); and

  • review and audit MSC’s processing facility for final diamond recovery from Sortex and

grease concentrates.

During the audits, the chain of custody, handling, sorting, and security protocols were reviewed by Howe and were determined to provide reasonable assurance of the adequacy of the quality of operations at each facility. No material deficiencies were identified.

13.6

SITE AUDITS

During the advanced exploration program phase, AMEC carried out several site visits to the Star Diamond Project. The audits were dedicated to review the operation of the process plant and examination of the kimberlite material and to conduct regular visits in order to review all aspects of the technical work and QA/QC being carried out on the project (i.e. LDD and underground sampling and processing, geological core logging, etc.) and data verification reviews.

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

Page 65 of 109

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