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completion of pilot core holes drilled for geotechnical and geological information from the 235 metre station.

Phase 1 of the lateral drift development was completed in November 2004, when Shore estimated that a minimum 25,000 tonnes of kimberlite had been sampled primarily from the EJF and CPK. Approximately 1,000 metres of lateral drifting had been completed. Drifts ranged in dimension from 2.4 metres to 3 metres high and 2.4 metres to 4.3 metres wide. Underground batch sample sizes ranged from 250 to 350 dry tonnes.

From April to November 2005, Phase 2 of the bulk sampling program was completed in order to obtain an additional 15,000 dry tonnes of kimberlite with batch samples from both the EJF and CPK for additional diamond grade estimation and diamond valuation purposes. A total of 820 metres of lateral drift developments were completed from the 235 metre level as well as from a ramp that exposed EJF from the 235 metre to the 215 metre level.

From February, 2006 to April, 2007, Phase 3 of the bulk sampling program was completed in order to obtain 25,000 dry tonnes primarily from the PPK and CPK for diamond grade estimation and diamond valuation purposes. A total of 1,106 metres of lateral drifting was completed.

Upon completion of the underground bulk sampling program on the Star Kimberlite, a combined total of 10,966 carats of commercial sized diamonds greater than 0.85 millimetre were recovered from a total of 75,435.68 dry tonnes of kimberlite material that was processed through Shore’s batch sampling process plant from both Shore’s 100 percent owned Star Kimberlite and the FALC-JV Star West bulk sampling programs. Tonnages include sampling of drift material, underground resource evaluation (RE) samples, geotechnical test samples and clean-up samples. Carat totals include 101.23 carats recovered from grease tailings and picked concentrate audits and 3.59 carats from float tailings audits.

All underground openings were geologically mapped and in the opinion of P&E, are adequate to support resource estimation and mine planning activities.

Large Diameter Drilling

From September 14, 2005 to December 27, 2007, 95 Large Diameter Drill (LDD) holes (1.20 metre diameter) totalling 19,350 metres were completed on the Star Kimberlite (80 LDD holes on the Shore property and 15 LDD holes on the FALC Joint Venture property). LDD holes were drilled vertically on a 100 metre by 100 metre grid pattern within the thicker central portion (proximal vent area) of the Star Kimberlite and at 200 metre by 200 metre intervals on the thinner, more distal portions of the Star Kimberlite.

In the summer of 2008, and following AMEC’s initial Resource Estimate, Shore, completed an additional eight in-fill LDD holes designed to upgrade Inferred Resources to the Indicated category. Based on a review of data supplied by Shore, P&E is of the opinion that the data are acceptable for Mineral Resource Estimation; however, adjustment for diamond breakage and stone loss during sampling is required.

P&E Mining Consultants NI 43-101 Technical Report No 159 Shore Gold - Star Diamond Project


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