Indicated: 28.2 Mct; Orion South Indicated: 27.1 Mct

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cnw

Stock Symbol: SGF: TSX



SASKATOON, Nov. 9, 2015 /CNW/ - George H. Read, P. Geo., Senior Vice President Exploration & Development of Shore Gold Inc. ("Shore" or the "Company"), is pleased to announce a significant increase in the estimated Mineral Resources for the Star - Orion South Diamond Project (the "Project").



Highlights


Indicated Mineral Resource on Star has increased 38 percent to 28.2 million carats and the grade has increased 11 percent to 15 cpht
Indicated Mineral Resource on Orion South has increased 134 percent to 27.1 million carats and the grade has increased 1 percent to 14 cpht






Revised Mineral Resource Estimate



George Read, stated: "Shore is very pleased with the substantial increase in tonnes, grade and carats in the Indicated Resource category of this Revised Mineral Resource estimate, which has been rigorously prepared to diamond industry standards using meticulously reviewed datasets. We are also pleased to have diamond expert Mr. Peter Ravenscroft supervise this mineral resource update after the 2015 LDD drilling of Orion South as he not only brings over 30 years of diamond resource estimation expertise with some of the major diamond companies in the world, but also clearly aligns our Star - Orion South Diamond Project Mineral Resource estimate with established diamond industry standards. Estimation of this Revised Mineral Resource has taken a more pragmatic approach with careful consideration of the geological controls on diamond distribution. Particular attention has been given to variations in diamond size frequency distribution, in addition to diamond grade. This approach has resulted in a substantial increase in the Indicated Resources in both Star and Orion South. The Star - Orion South Diamond Project now has one of the largest Indicated Resources of any diamond project that is not in development. The diamond populations of the EJF and Cantuar kimberlite units at Star and the EJF kimberlite unit at Orion South have significantly coarse diamond size frequency distributions from which we can anticipate the recovery of large, high quality (Type IIa) diamonds in future production."



The scientific and technical information contained in this press release has been prepared and verified by A.C.A. Howe International Limited ("Howe"), under the supervision of Mr. Daniel C. Leroux, M.Sc., P. Geo. and the Mineral Resource estimation methodology under the supervision of Peter Ravenscroft, FAusIMM, of Burgundy Mining Advisors Ltd., an independent mining consultant, and a Qualified Person ("QP") within the meaning of National Instrument 43-101 of the Canadian Securities Administrators. This Revised Mineral Resource estimate uses diamond industry standard methods which are rigorously applied to the Star and Orion South evaluation data, acknowledging the significant control that fundamental kimberlite geology has on the distribution of diamonds within these deposits. The initial goal of the Revised Mineral Resource estimate was to upgrade the significant proportion of Inferred Resources estimated for Orion South to the Indicated Resource category following a 12-hole Large Diameter Drilling program completed earlier this year. However, a detailed review by a new QP of previous Mineral Resource estimates and adoption of a more appropriate resource estimation methodology required that this approach also be applied to the Star Kimberlite. This news release documents the Revised Mineral Resource estimates for Star and Orion South can be found on the Website.