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Gold/Mining/Energy : Shore Gold C.sgf -- Ignore unavailable to you. Want to Upgrade?

To: Tupulak who wrote (323)	4/21/1998 12:47:00 PM
From: Terence Mitchell	Read Replies (2) \| Respond to of 550

NEWS RELEASE SHORE NEWS RELEASE Diamond results from Fort a la Corne Shore Gold Inc SGF Shares issued 13,327,217 Apr 20 close $0.72 Tue 21 Apr 98 News Release Mr Kenneth MacNeill reports Shore Gold has received the results from the fall 1997 drill program on its 100% owned Fort a la Corne diamond property. The program involved the drilling of two large diameter core (3.35 inches in diameter) holes in the large kimberlite body on the western side of the property. The holes were drilled near the location of drill hole 96-3 drilled in the previous program (see Stockwatch September 16 1997). The goal of the program was to gain additional knowledge of the geology of the kimberlite and to obtain a larger sample size. Samples weighing a total of 3.0 tonnes were shipped to the Saskatchewan Research Council laboratory in Saskatoon. Kimberlite represented approximately 1.2 tonnes of the total sample, with Cretaceous sedimentary rock making up the remainder. Drilling intersected four distinct kimberlite zones in each hole. The two most significant ones are a 45m thick, highly diamondiferous kimberlite flow near the top of the rock sequence, and 50m below it a 4m thick zone also returning a good diamond count. The core samples were processed using caustic fusion to recover both microdiamonds and macrodiamonds. A total of 749 diamonds including 67 macrodiamonds (those diamonds with one dimension greater than 0.5mm) were recovered from 983kg of sample. This included the largest diamond recovered to date measuring 2mm in one dimension. The Main zone accounted for 94% of total diamonds (702 stones from 818kg) and 97% of the macrodiamonds (65 stones). 91% of the stones are clear with no inclusions, and 89% are clear and white. 2% of the clear stones exhibit some colour including clear yellow. 81% of the diamonds exhibit good crystal structure, 11% are multiple crystals and aggregates and only 8% are fragments. Results for the Main zone, which at present appears to be the zone most likely to be mined, compare favourably with the initial results obtained in the Buffalo Hills area of Alberta in the spring and summer of 1997, when that rogram was at a similar stage to the current results being reported by Shore from the Fort a la Corne project. The best drill hole reported from the Buffalo Hills during the initial drilling (with the exception of one highly anomalous 30m intersection) averaged 9.9 diamonds per 10kg, with the largest macrodiamond measuring 1.5mm in the greatest dimension. Shore's Main zone also averages 9.9 diamonds per 10kg in drill hole 97-3A with the count from both holes averaging 8.6 diamonds per 10kg. The largest macrodiamond recovered measures 2.0mm. The macro to micro ratio in the Main zone is 0.1, which is significantly higher than the initial Buffalo Hills' ratio of 0.06 in the best core hole reported in mid 1997. Inter- Less Greater Drill val Weight than than Total Hole (m) (kg) 0.5mm 0.5mm Zone 1 97-3A 2.1 23.0 3 - 3 97-3B (included with sediment) ----- --- --- --- 23.0 3 - 3 ----- --- --- --- Zone 2 (Main zone) 97-3A 45.3 400.7 360 36 396 97-3B 40.2 417.1 277 29 306 ----- --- --- --- 817.8 637 66 702 ----- --- --- --- Zone 3 97-3A 0.6 8.8 1 - 1 97-3B 1.1 11.2 1 1 2 ----- --- --- --- 20.0 2 1 3 ----- --- --- --- Zone 4 97-3A 3.7 50.4 17 - 17 97-3B 4.9 71.4 23 1 24 ----- --- --- --- 121.8 40 1 41 ----- --- --- --- Totals 982.6 682 67 749 ===== === === === The Fort a la Corne field hosts some of the largest kimberlite bodies in the world, with at least one exceeding one billion tonnes. Geophysics indicates the kimberlite intersected by Shore's drill holes 97-3A and B measures approximately 2.0km by 1.5km and has been drill tested so far to measure at least 1.5km by 0.6km. The Fort a la Corne area is accessible by paved highway with water and power readily available. Preliminary independent engineering studies suggest that cash operating costs to mine the deposit would be US$12 to $15 per tonne. The 1998 exploration program is currently being finalized, and part of that program will include a much larger sample which is now absolutely necessary due to the extremely positive results of the 1997 core drilling program. The company recently acquired an additional 21,000 acres in the Fort a la Corne area and now has a 100% working interest in over 52,000 acres, most of which has not yet been explored. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com