Interesting read about SGFKeep in mind what SNO's samples have yielded so far regarding color and size distribution...
The latest Ashton NR about their sample as well is worth a read, again SNO had a higher percentage of larger stones and several stones larger than Ashtons largest recent sample .
Shore finds more twinkle in Star
2006-09-08 15:16 ET - Street Wire
by Will Purcell
Shore Gold Inc. has several more large diamonds and they kept investors happy enough to ignore the somewhat lower grades and size distributions revealed in the second set of results from a new bulk sample of the Star pipe. The colour of the larger diamonds slipped a bit as well, although the largest of the gems were encouragingly white. That could be enough to sustain the rock value, despite the weaker grades and stone attributes in the latest batches.
The grade
Shore processed eight individual batches of kimberlite, recovering 340.42 carats from 2,139.57 tonnes of rock. That supported an average grade of 0.159 carat per tonne. The parcel contained 2,856 diamonds, and that worked out to an average diamond weight of 0.119 carat.
In 2004 and 2005, Shore Gold processed over 36,000 tonnes of higher-grade kimberlite taken from the 235-metre level of Star. The rock yielded enough diamonds to support a grade of 0.179 carat per tonne and an average diamond weight of 0.138 carat. The grade of the latest eight batches is about 11 per cent below that previous average, while the average stone weight in the latest samples was off the earlier mean by about 14 per cent.
The grade variation could easily be written off as just a function of the smaller sample size, but it may reflect a different diamond content as Shore moves away from its shaft and the 235 metre level. Six of the eight latest batches came from a ramp that continues to climb toward the 215-metre level, to the east of the shaft. Those batches contained nearly 1,868 tonnes of kimberlite and they averaged 0.115 carat per tonne, with an average diamond weight of 0.112 carat. The two latest batches from the 235-metre level averaged 0.191 carat per tonne, with an average stone weight of 0.187 carat.
Shore had far better luck with its first series of samples along the ramp, but that is no surprise. The first few portions of rock would come from elevations close to 235 metres, while subsequent samples would reflect the continued rise toward the 215-metre level.
Shore Gold's large diameter drill program also yielded a lower grade. About 2,250 tonnes of early Joli Fou kimberlite recovered from 15 vertical holes managed an average of 0.118 carat per tonne and an average diamond weight of 0.107 carat. Those numbers are a close match with what Shore found in its latest tests along the ramp.
The slightly lower grade might seem disappointing, but it continues to prove Star contains a large amount of kimberlite with economically interesting grades. Further, there could be room for improvement beyond the 235-metre zone, as Shore has yet to tap into any richer regions.
The heftier grade of the 235-metre zone resulted from a small number of individual batches that averaged about 0.30 carat per tonne. If comparable batches start turning up elsewhere, the average grade would quickly improve. In any case, the large diameter drill program and Shore's new ramp are proving that there is not a big grade drop as the company drifts away from the shaft.
The stone size
The smaller average diamond weight might also seem worrisome, but it certainly was not reflected in the haul of largest stones. Shore Gold recovered another diamond topping the 10-carat mark and a second stone came close to seven carats. Both of those stones came from samples excavated from the ramp, so there are no immediate worries about the stone size distribution declining rapidly beyond from the 235-metre level.
In fact, the lower average stone weight is likely the result of statistical bad luck. Shore had at least six diamonds topping three carats, but it managed at most another eight that weighed at least two carats. The 14 diamonds weighing more than two carats accounted for about 14 per cent of the total diamond weight. That is down from an average of nearly 20 per cent obtained in the first two big bulk tests. Diamonds weighing between one and two carats provided 11 per cent of the parcel weight in the latest batches, compared with about 10 per cent in Shore's last two bulk tests.
Diamonds weighing between one-half carat and one carat 12 per cent of the latest haul, compared with about 13 per cent from the two earlier bulk samples. Therefore, it appears the lower average diamond weight resulted from the paucity of stones between two and three carats, not a general degradation of the size distribution curve. That points to statistical bad luck as the probable culprit.
The colour enigma
Shore Gold continues to tout exceptional colour attributes for its diamond haul. The company said that 67 per cent of the stones were white, with another 15 per cent classified as off-white diamonds. Those values are a bit better than what Shore averaged with its two big bulk tests.
The colours of the one-carat diamonds in the latest samples were not as rosy. About 46 per cent of the 41 one-carat gems were white, while off-white and grey gems each accounted for another 20 per cent of the parcel. About 15 per cent of the larger diamonds were brown or yellow.
Shore had some good luck with its largest stones, and that could easily negate those poorer proportions. The 10.26-carat gem and the 6.62-carat diamond both were white, as was a 3.53-carat gem. Shore classified its third-largest diamond, a 3.77-carat stone, as brown.
There is at least one encouraging sign that Shore may find better colour as it proceeds with its third bulk sample. The company's large diameter drill program produced 35 one-carat gems, and white diamonds accounted for 60 per cent of that number. Off-white gems produced another 20 per cent of the total, with grey stones accounting for just 11 per cent of the parcel.
To sustain an average value of $135 (U.S.) per carat, the latest 340-carat haul would require a $46,000 (U.S.) appraisal. A few large, white and clear diamonds could account for most of that value. That would not be unusual, as about 80 per cent of the revenues from a diamond mine typically come from about 20 per cent of the diamond weight.
Shore's prefeasibility study should provide investors with some reasonable estimates of the costs facing a Star diamond mine. Until then, the company's shareholders are eagerly buying the notion that the company can mine and process the rock for less than $10 (U.S.) per tonne. If they are right, the latest grades and diamond attributes would seem encouraging.
Shore closed down 11 cents at $5.75 Thursday on 813,000 shares.