Replies to post #13087 on One Step Ahead

[gump90]

Sorry Bo my friend ..
it does not work that way. Shore has a huge data base and know quite a bit about the Star Kimberlite. The shaft location was carefully chosen to show them typical material of varying grade .. that they knew before they started. They are now driving horizontally from the shaft. That program is expected to be completed in October. Now here is an example for you regarding bulk sampling. Diamonds are very tiny within the rock mass. The bigger the sample you can take to extract the diamonds from, the more reliable determination you will get. For example stick a straw into a cake with a few tiny tiny chocolate chips in it. You won't hit many chips. But if you stick a 1 inch tube down into it and extract the chips from that you will have a more reliable count of the chip content in the cake. Then take 1/16 of the whole cake and extract the chips. This is the most reliable sample of the 3. The final answer comes when the whole cake has been processed some time in the future. CMKX was poking straws at Carolyn. Kensington is into the next size up .. very large diameter core holes. Shore is at the top .. in the bulk mining stage .. 25,000 tons.

[drdetwin]

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.