Bo take a look at this..
Shore GOLD is still 5-8 years away from an operational mine, but more importantly the question still remains on whether the Star Kimberlite is economical. Until the final diamond valuations are released and a feasibility studied issued we will be left to speculate. Using the information the information that has publicly been released we can make some logical assumptions on whether it will be viable.
Here are Shore Golds results not including yesterdays PR.
1. Late Joli Fou kimberlite:
Batch…level……...tonnes...carats…grade (cpht)
1…107-131.4…….825.52…13.08…1.58
2…131.4-140.2….570.24…14.09…2.47
3…140.2-149.6….442.57…11.79…2.67
4…140.6-161.5….463.44…7.77…..1.68
5…161.5-171……373.90…18.51…4.95
6…171-190.5…..1878.06...130.68…6.96
Total…………….4553.73...195.92…4.30
2. Early Joli Fou kimberlite
Batch…level….…..tonnes.…carats…grade (cpht)
7A…190.5-196.2…265.83…32.85…12.36
7B…196.2-200.4…191.75…26.49…13.82
7C…200.4-207.6…332.87…53.04…15.93
8…..207.6-230.4….(not reported yet)
9…..230.4-235……983.34…91.98….9.35
10…237-250……...586.13…57.06….9.73
sub-total………..2359.92…261.42…11.08
11…235 level………67.31…..7.27…10.79
12…235 level……..394.27….63.00…15.98
13…235 level……..350.32….68.62…19.59
14…235 level……..232.03….71.23…30.70
15A..235 level…….132.54….20.01…15.10
Total (overall)……3536.39...491.55..13.90
The consensus is that it would cost Shore Gold approx $10 per tonne for mining/processing costs. On top of that roughly $3 per tonne which will cover preproduction/capital costs.
The average grade for the (190.5 m to 250 m level see above) through the Early Joli Fou kimberlite is 11.08 cpht. At US$100/carat this equates to US$11/tonne kimberlite. With mining and processing costs at US$10/tonne, and capital costs of US$500,000,000 this would be uneconomic to mine.
Even using the 13.90 cpht (grade to date) for the Early Joli Fou kimberlite- which strictly speaking wouldn’t be correct because it includes a lot of the higher grade kimberlite from just one (235 m) level- at US$100/carat it would provide less than the 15% rate of return.
Shore Gold did release some higher grades today but that was to be expected since those batches were from the 235M level.
It will take at least $150 US per carat in order to have a viable mine. Until we see the actual valuations from Shore all we can do is speculate, but at this point in time an open pit mine at Star is still a huge question mark. IMO They have pulled out some large stones but we don't know if they are industrial aggregates or gem quality. The 19.7 carat was ultimately recorded as an aggregate with retail value of only $100.
Technology has advanced however you need to substantiate the grade content and diamond valuations which is something the TDEM won't tell you. IMO it's going to take CMKX at least 3-5 to reach the advanced bulk sampling stage. Keep an eye on Shore Gold because if the project does not ultimately become a mine/even underground then the entire FALC play may lose its steam.