SGF news - ClarificationClarification of news release dated November 21 2006: Fort a la Corne joint venture Orion North geological estimate: 800 million tonnes of kimberlite
15:26 EST Friday, November 24, 2006
Stock Symbol: SGF: TSX
SASKATOON, SK, Nov. 24 /CNW/ - George H. Read, P. Geo., Senior Vice President Exploration and Development, provides additional information on the Orion North tonnage estimate that clarifies and substantiates the news release published by Shore Gold Inc. on November 21, 2006. The Orion North tonnage estimate is conceptual in nature and is an estimate of the kimberlite within Orion North based on the drilling information presently available to the Company. The tonnage estimate below is re-stated from the tonnage included in the November 21, 2006 news release as a range of values to emphasize that, with more intense pattern drilling of Orion North, the present tonnage estimate could change. However, at this stage there has been insufficient exploration to define a mineral resource on this property and it is uncertain if further exploration will result in the property being delineated as a mineral resource. The estimated range of tonnage of Orion North kimberlite is listed in the following table.
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Kimberlite Complex Estimated Number of Total Kimberlite
Tonnage Range Drillholes Intersected (metres)
Tonnes
(millions)
Orion North-SE 555 - 600 103 9,272
Orion North-NW 245 - 270 49 5,265
Orion North Total 800 - 870 152 14,537
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Senior Vice President Exploration and Development, George Read, states: "This tonnage estimate for Orion North is not a mineral resource or reserve estimate but is an important milestone in the continued exploration of these very large diamondiferous kimberlites within the Fort a la Corne Joint Venture (FALC-JV). Shore geologists have developed and tested exploration methods specifically applicable to these large FALC-JV kimberlites based on Shore's 100 percent owned Star Diamond Project. These exploration methods include: 1. Pattern core drilling combined with detailed quantitative logging to define the size, shape and map the internal structure of the kimberlite; 2. Large diameter (LD) drilling which recovers mini-bulk samples for diamond grade and value modeling purposes across the kimberlite; and 3. Underground bulk sampling of major kimberlite phases for accurate diamond grade and value estimates on diamond parcels greater than 1,000 carats. The initial phase of pattern core drilling has been completed on Orion North as evidenced by the 152 drillholes reported above and infill core drilling is presently underway. LD drilling has commenced and holes No.5 and No.6 of a 20 hole program are currently being drilled. Shaft sinking and underground bulk sampling is planned for 2007, assuming positive results from the preliminary LD drilling. A kimberlite resource estimate will be available after the completion of a comprehensive LD drilling and underground bulk sampling program."
In early November, Shore and Newmont Mining Corporation of Canada Limited (Newmont) approved a 2006Q4/2007 budget of $66.5 million for the aggressive exploration of the FALC-JV. This budget will be funded 60 percent by Shore through Kensington Resources Ltd. (the Operator) and 40 percent by Newmont (see Shore News Release November 8, 2006).
Senior Vice President Exploration and Development, George Read, Professional Geoscientist in the Provinces of Saskatchewan and British Columbia, is the Qualified Person responsible for the verification and quality assurance of analytical results. Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Exchange under the trading symbol "SGF".
Caution Regarding Forward-Looking Statements
From time to time, Shore makes written or oral forward-looking statements within the meaning of certain securities laws, including the "safe harbour" provisions of the Ontario Securities Act and the United States Private Securities Litigation Reform Act of 1995. Shore may make such statements in this press release, in other filings with Canadian regulators or the United States Securities and Exchange Commission, in reports to shareholders or in other communications. These forward-looking statements include, among others, statements with respect to Shore's objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our beliefs, plans, objectives, expectations, anticipations, estimates and intentions. The words "may," "could," "should," "would," "suspect," "outlook," "believe," "plan," "anticipate," "estimate," "expect," "intend," and words and expressions of similar import are intended to identify forward-looking statements. In particular, statements regarding Shore's future operations, future exploration and development activities or the anticipated results of Shore's pre-feasibility study or other development plans contain forward-looking statements.
All forward-looking statements and information are based on Shore's current beliefs as well as assumptions made by and information currently available to Shore concerning anticipated financial performance, business prospects, strategies, regulatory developments, development plans, exploration, development and mining activities and commitments. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, developments in world diamond markets, changes in diamond valuations, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Shore or its joint venture partners; the effects of competition in the markets in which Shore operates; the impact of changes in the laws and regulations regulating mining exploration and development; judicial or regulatory judgments and legal proceedings; operational and infrastructure risks and the additional risks described in Shore's most recently filed Annual Information Form, annual and interim MD&A and short form prospectus, and Shore's anticipation of and success in managing the foregoing risks.
Shore cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to Shore, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Shore does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by Shore or on our behalf.
For further information: Wade D. MacBain, Corporate Communications Manager at (306) 667-3503
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