Yukon JoeHello Joe
It is true that the key to an economic diamond discovery is the value of the diamonds,but what sets the dollar value needed by the diamonds to prove the deposit economical?
The cost of production itself sets the average dollar value needed from the stones.
Not only is Shore Gold becoming recognized for its huge deposits of diamondiferous kimberlite but also becoming known for its drastically low estimated production costs as well.
The FaLC area has all infrastructure is in place.It is approximately 60 kms East of Prince Albert.All grids are in place along with power, gas,etc.
It is estimated that mining costs at FaLC would fall around US $10 - US$ 13 dollars.
With this low prodution cost combined with the over 400 million tonnes of kimberlite and an average grade of .28 carats per tonne(carat grade should increase with bulk sample)the estimated break even value per carat needed is approximately US$50 per carat.As you can see this break even value is much lower then the already proven value from the DeBeers/KRT JV next door at US$150 - US$179 and a stone as high as US$370 per carat.
One other thing to note is that Shore Gold has proceeded to this level with maintaining %100 Shore.No JV involved at the present time.
You can find links and other info pertaining to Shore Gold at www.youbc.com/shore .
As to which play is more favorable, well thats your decision,though I would definitely give Shore a good look.