Global Prospecting Ventures Inc (fka GPVI)

[was averagejoe]

Shore's release:

Canadian News US News MediaScan SHfn SH Editorial
TSX / TSX Venture
Shore Gold Inc. Quick Quote: SGF 1.75 (+0.15)




Star Diamond Project initial diamond recoveries: 344 carat parcel
6/22/04

SASKATOON, SK, Jun 22, 2004 (Canada NewsWire via COMTEX) --
George H. Read, P. Geo., Senior Vice President Exploration, is pleased to announce the initial diamond recoveries for the first six sample batches processed from the Star Kimberlite. These are the initial results of some 80 to 100 kimberlite batches that wi
ll be processed as part of the bulk sampling program on the Star Diamond Project, the aim of which is to recover a parcel of some 3,000 carats for valuation purposes. A total of 3,355 commercial sized diamonds (greater than 1.18 millimetre square mesh screen), collectively weighing 338 carats, has been recovered from the treatment of 4,913 dry tonnes of kimberlite. Thirty-three diamonds greater than one carat have been recovered and the three largest stones are: 3.50, 3.31 and 3.19 carats, respectively. In addition, 352 diamonds (6 carats) were recovered down to 0.85 millimetre square mesh. The colour of over 80 percent of these diamonds has been classified as white, with a further 12 percent classified as off-white.

Initial kimberlite processing commenced in three areas of the Star Kimberlite:

1.) The top of the kimberlite (Batch 1) was used to commission the plant as low diamond grades were anticipated due to dilution caused by abundant mudstone xenoliths in the immediate vicinity of the shaft.

2.) Kimberlite was processed from the shaft above (Batch 5) and below (Batch 7A) the 175 metre shaft station, in addition to the kimberlite extracted to construct the 175 metre station (Batch 6).

3.) Kimberlite from the 235 metre shaft station (Batch 9) and kimberlite from the base of the shaft (Batch 10).

The kimberlite batches from the 175 and 235 metre shaft stations were processed to confirm lateral drift development proceeding on these levels. Batches 2A, 2B, 3A, 3B, 4A, 4B, 7B, 7C (all from shaft), 11 and 12 (from 235 metre level) have all been processed on-site and the concentrates dispatched to the sorting laboratory for final diamond recovery. Results from these batches are pending.

All batches processed to date are classified as crater facies volcaniclastic kimberlites. The batches from the upper portion of the Star Kimberlite (Batches 1 & 5) are Late Joli Fou stratigraphic equivalent kimberlites while the batches from the lower part of the shaft (Batches 7, 9 & 10) are Early Joli Fou equivalent kimberlite. Batch 6 is located approximately at the boundary of the Early and Late Joli Fou kimberlite phases. Batch 6 exhibits some dilution from country rock mudstone xenoliths. The results suggest significant grade differences between the Early and the Late Joli Fou kimberlites. Batch 7A is a highly altered kimberlite breccia. The first shaft station was established at 175 metres below surface, above this altered breccia, for mine safety reasons. It is anticipated that lateral drift development will intersect this highly prospective breccia to the east of the shaft. Current mining on the 235 metre level has intersected similar breccias to Batch 7.

Initial kimberlite processed and diamond results for these six sample batches are listed in the table below. Grades are expressed in carats per hundred tonnes (cpht).

------------------------------------------------------------------------- Location Diamonds Largest Batch (metres below Dry Number of Total Grade Stone No. surface) Tonnes Stones (carats) (cpht) (carats) ------------------------------------------------------------------------- 1 Shaft: 107-131.4 825.52 246 13.08 1.58 1.30 ------------------------------------------------------------------------- 5 Shaft: 161.5-171 373.90 238 18.51 4.95 2.61 ------------------------------------------------------------------------- 6 Shaft & Station: 171-190.5 1,878.06 1,093 130.68 6.96 3.50 ------------------------------------------------------------------------- 7A Shaft: 190.5-196.2 265.83 356 32.85 12.36 2.87 ------------------------------------------------------------------------- 9 Station: 230.4-235 983.34 1,093 91.98 9.35 2.14 ------------------------------------------------------------------------- 10 Shaft: 237-250 586.13 681 57.06 9.73 1.10 ------------------------------------------------------------------------- Total 4,912.78 3,707 344.16 7.01 -------------------------------------------------------------------------
The three largest stones have been recovered from Batch 6: 3.50, 3.31 and 3.19 carats (all white), respectively. Ten diamonds exceed two carats and 33 diamonds exceed one carat of which 25 are white, 5 are off-white and three are brown. A total of 88 diamonds exceeds 0.5 carat. Over 80 percent of the total diamond parcel is classified white in colour, with a further 12 percent classified as off-white. The diamond parcel includes 24 yellow, 21 pink and three green stones. Ninety-eight percent of the carat weight of this parcel occurs in diamonds greater than 1.18 millimetre square mesh. A selection of images of some of these diamonds is available on the Shore Gold website: www.shoregold.com

Senior Vice President Exploration, George Read, states: "These initial diamond results justify the significant work that has been required to commission this bulk sampling project. We are greatly encouraged by these results, in particular, the size and abundance of large stones and the overall high percentage of white stones".

The diamond recovery procedure includes on site processing of kimberlite through the modular dense media separator (DMS), after which DMS concentrates are batch fed through an X-ray Flow-sort. In order to ensure the recovery of low luminosity diamonds, the Flow-sort tailings are processed over a grease table. Flow-sort and grease table concentrates are transported by a secure carrier to SGS Lakefield Research for final diamond recovery. The SGS Lakefield Research process includes drying, screening, magnetic separation, manual sorting and diamond weighing and description. SGS Lakefield Research is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for specific tests.

Grease table tailings and samples of the DMS light fraction have been sent to Rio Tinto's Thunder Bay Mineral Processing Laboratory for audit. These tailings fractions will be audited for both free and locked diamonds down to 0.85 millimetre square mesh. The audit process includes screening, drying, magnetic separation, crushing and manual sorting. The audit process was delayed due to an abundance of sulphide in the grease table tailings of kimberlite Batch 1. Grease table tailings audits for free diamonds have been completed for Batch 1 and part of Batch 6. Low diamond recoveries from the audit samples confirm the integrity of the processing plant. Most of the diamonds recovered from the audits are small (1.18 - 1.70 millimetre square mesh) and poor quality (brown or grey in colour). Audit sample processing continues and results will be integrated with final results. The Thunder Bay Mineral Processing Laboratory is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for specific tests.

Senior Vice President Exploration, 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.

The Star Diamond Project is designed to recover a parcel of at least 3,000 carats of diamonds to enable an accurate valuation of the stones. Up to 25,000 tonnes of kimberlite will be recovered from the shaft and drifts and processed on site to produce this diamond parcel. Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Venture Exchange under the trading symbol "SGF".

The Company is hosting a conference call at 09:00 am Eastern Time on Wednesday June 23, 2004. Please dial 1-877-888-7019 or 1-416-695-5259 to participate.

"The TSX Venture Exchange has not reviewed and does not accept

responsibility for the adequacy or accuracy of this release"


VIEW ADDITIONAL COMPANY-SPECIFIC INFORMATION: http://www.newswire.ca/en/releases/orgDisplay.cgi?okey=14555

For further information: Kenneth E. MacNeill, President & C.E.O.; George Sanders, Vice President Corporate Development; or George H. Read, P. Geo., Vice President Exploration at [phone]

News release via Canada NewsWire, Calgary 403-269-7605

Copyright (C) 2004 CNW, All rights reserved