CMKM Diamonds Inc. (fka CMKX)

[janice shell]

Shore Gold is exploring a large kimberlite body in Saskatchewan with a footprint suggesting potential for about 500 million tonnes. Initial micro diamond and mini bulk sample results suggest a complex body with an overall low grade possibly in the 0.1-0.2 ct/t range. Nothing is yet known about carat value potential. If the tonnage and grade range hold up, an average carat value of only $40 per carat would be needed for this target to represent 5 million ounce plus gold equivalence. Because this project is already at the bulk sampling stage it reasonable to view it as a world class target

Property Portfolio Size

Although Shore Gold has some gold properties in Saskatchewan, these are irrelevant because they are dwarfed by the flagship Star diamond play. Shore Gold is a one shot exploration play; either the Star kimberlite is a major success or it is a bust. By the time the bulk sample is done it will have cost $10-20 million. Shore Gold is a classic high stakes roll of the dice in the junior exploration game. The situation is different next door where the FALC JV of Kensington and De Beers covers most of the Fort a la Corne kimberlite field which contains numerous bodies representing billions of tonnes of kimberlite with varying diamond content. Establishing the feasibility of large tonnage low grade and complex diamond deposits is expensive and time consuming. Prioritization is thus critical, and tricky if the understanding of the geology and deposition model is an evolving process, as it has been at Fort a la Corne during the past decade. For Shore Gold the task is simple: make or break the Star kimberlite.

http://www.kaiserbottomfish.com/s/CompanyProfile.asp?ReportID=59447