Shore Gold thinks it can pare several hundred million dollars from its capital costs
Shore Gold has posted their presentation from PDAC 2017. It is HERE Story is below.
By Will Purcell
March 9, 2017
Ken MacNeill and George Read’s Shore Gold Inc. (SGF) gained one cent to 19 cents on 2.11 million shares. The company, oft accused of being quieter than a field mouse under the eye of a hungry hawk, provided a lengthy update this week. The news covered the work Shore has been doing toward an updated feasibility study of its Star-Orion South project in central Saskatchewan. The study is several months late — at least to investors who recall the company half-heartedly saying that it could be finished late last year — and the latest news suggests a reason why.
Shore’s new news reads very much like its old news — specifically a release that the company rolled out in late September. A few paragraphs received just a light edit and one, containing a lengthy comment from Mr. Read, Shore’s ebullient senior vice-president, was essentially unchanged from the September version. (The only change was a change of tense — ” George Read, states ” became ” George Read, stated.”) That strongly suggests that the company used its September release as the basis for its latest news, although Mr. Read has probably uttered the 70-word comment so many times over the past six months that he can recite it verbatim.
While the regurgitation of old news added new discouragement to the disappointment felt by some shareholders, there are several new snippets worthy of note embedded within the old story. In September, Shore said it had plans to improve the efficiencies of recovering diamonds from material down to eight millimetres in diameter using X-ray transmission (XRT) sorters. The company still plans to do so, but it has now added details about “proposed capability of recovering diamonds down to plus-two millimetres” from the dense media separator concentrate. Those plans will apparently involve some combination of X-ray sorters and grease tables.
As well, Shore and its consultants have now started a detailed review of processing data ahead of a “redesign of the diamond processing flowsheet.” That redesign will include laser sorters and near-infrared waste rock sorters, in addition to the XRT sorters it previously mentioned. Further, Shore’s consultants are reviewing all the tests regarding autogenous milling and comminution (reducing to minute particles) of the kimberlite, and the liberation of diamonds. The company is also completing tests on the hydrodynamic properties of the fine kimberlite waste that would eventually be put in the proposed containment facility for the mammoth mine.
Shore’s revised feasibility study will incorporate the resource estimate that the company revised in 2015, but the main purpose of the new look is to cut the projected capital costs, initially pegged at a prohibitive $2-billion. The company thinks it can pare several hundred million dollars from that estimate, starting the mine at Orion South perhaps, where the richer kimberlite comes closer to the surface, and by more efficient methods of stripping the overburden. There presumably are savings to be had in the processing plant as well, although most of the upgrades would improve the bottom line through greater recovery rates and (hopefully) lower operating costs. In any case, Shore’s weary shareholders are hopeful that the feasibility study will be worth the long and continuing wait