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Post by Franko10 ™ on Feb 23, 2005 14:42:28 GMT -5
Star Diamond valuation US$135 per carat modeled value
12:40 EST Wednesday, February 23, 2005
Stock Symbol: SGF: TSX
SASKATOON, SK, Feb. 23 /CNW/ - George H. Read, P. Geo., Senior Vice President Exploration, is pleased to announce that a modeled value of US$135 per carat has been determined from the 3,050 carat parcel of diamonds recovered from the Star Kimberlite. The modeled value was determined by WWW International Diamond Consultants Limited, who, with their aboriginal partners ADG through Diamonds International Canada (DICAN), are the valuators to the Federal Government of Canada for the Canadian diamond mines in the NWT.
The 3,050 carat diamond parcel was examined by four companies: R. Steinmetz and Sons N.V., WWW International Diamond Consultants Limited, Rio Tinto Diamonds N.V. and BHP Billiton Diamonds (Belgium) N.V. Each of these companies has provided Shore with a detailed report on the valuation of the diamond parcel. The sample value of US$110 per carat is the average of the valuations provided by the four companies and is based on the actual price that a producer will currently receive for this parcel in Antwerp.
The modeled value is determined using statistical methods to estimate the average value of diamonds that will be recovered from a future mine on the Star Kimberlite based on the valuation of the 3,050 carat parcel at current diamond prices. The difference between the sample value and the modeled value results from under sampling of the top end (plus 5 carat) of the diamond size frequency distribution by the current bulk sample. The average modeled value of US$135 lies between a "minimum" of US$110 and a "high" of US$162. WWW believe it is unlikely that the average price will be lower than US$110 per carat based on current prices and that the "high" modeled value of US$162 is reasonable considering the potential value of the larger diamonds in the Star Kimberlite.
Senior Vice President Exploration, George Read, states: "Shore Gold is very pleased with this high modeled value of US$135 per carat. Based on these results it is expected that Shore will commence a prefeasibility study which aims to determine a Mineral Reserve for the Star Kimberlite. The prefeasibility study will include underground drilling preceding the extraction of some 10,000 tonnes of kimberlite, core and large diameter surface drilling, a desktop engineering study and the commencement of an environmental baseline study. The Company acknowledges the hard work of its employees, consultants and contractors that has led to this significant valuation number."
The diamond valuation procedure in both Saskatoon and Antwerp was supervised and monitored by Senior Vice President Exploration, George Read, Professional Geoscientist in the Provinces of Saskatchewan and British Columbia, and Project Geologist, Kirsten Marcia, Professional Geoscientist in the Province of Saskatchewan.
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".
/For further information: please contact: Kenneth E. MacNeill, President & C.E.O. and George H. Read, P. Geo., Vice President Exploration at (306) 664-2202./
12:40 EST Wednesday, February 23, 2005
Stock Symbol: SGF: TSX
SASKATOON, SK, Feb. 23 /CNW/ - George H. Read, P. Geo., Senior Vice President Exploration, is pleased to announce that a modeled value of US$135 per carat has been determined from the 3,050 carat parcel of diamonds recovered from the Star Kimberlite. The modeled value was determined by WWW International Diamond Consultants Limited, who, with their aboriginal partners ADG through Diamonds International Canada (DICAN), are the valuators to the Federal Government of Canada for the Canadian diamond mines in the NWT.
The 3,050 carat diamond parcel was examined by four companies: R. Steinmetz and Sons N.V., WWW International Diamond Consultants Limited, Rio Tinto Diamonds N.V. and BHP Billiton Diamonds (Belgium) N.V. Each of these companies has provided Shore with a detailed report on the valuation of the diamond parcel. The sample value of US$110 per carat is the average of the valuations provided by the four companies and is based on the actual price that a producer will currently receive for this parcel in Antwerp.
The modeled value is determined using statistical methods to estimate the average value of diamonds that will be recovered from a future mine on the Star Kimberlite based on the valuation of the 3,050 carat parcel at current diamond prices. The difference between the sample value and the modeled value results from under sampling of the top end (plus 5 carat) of the diamond size frequency distribution by the current bulk sample. The average modeled value of US$135 lies between a "minimum" of US$110 and a "high" of US$162. WWW believe it is unlikely that the average price will be lower than US$110 per carat based on current prices and that the "high" modeled value of US$162 is reasonable considering the potential value of the larger diamonds in the Star Kimberlite.
Senior Vice President Exploration, George Read, states: "Shore Gold is very pleased with this high modeled value of US$135 per carat. Based on these results it is expected that Shore will commence a prefeasibility study which aims to determine a Mineral Reserve for the Star Kimberlite. The prefeasibility study will include underground drilling preceding the extraction of some 10,000 tonnes of kimberlite, core and large diameter surface drilling, a desktop engineering study and the commencement of an environmental baseline study. The Company acknowledges the hard work of its employees, consultants and contractors that has led to this significant valuation number."
The diamond valuation procedure in both Saskatoon and Antwerp was supervised and monitored by Senior Vice President Exploration, George Read, Professional Geoscientist in the Provinces of Saskatchewan and British Columbia, and Project Geologist, Kirsten Marcia, Professional Geoscientist in the Province of Saskatchewan.
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".
/For further information: please contact: Kenneth E. MacNeill, President & C.E.O. and George H. Read, P. Geo., Vice President Exploration at (306) 664-2202./
