Category Archives: diamonds

James Smith Cree Nation chief wants meeting with Shore Gold executives

James Smith Cree Nation chief wants meeting with Shore Gold executives

Alex MacPherson, Saskatoon StarPhoenix

Published on: June 9, 2017 | Last Updated: June 9, 2017 5:10 PM CST

Shore Gold FALC aerial
An aerial view of Shore Gold Inc.’s proposed diamond mine in the Fort à la Corne forest east of Prince Albert. Shore Gold Inc. / Saskatoon

The chief of a First Nation near a proposed diamond mine in the Fort à la Corne forest east of Prince Albert says he is “not impressed” with communication from the company behind the project, and wants to meet with its executives to discuss the project’s potential environmental impact.

James Smith Cree Nation Chief Wally Burns called for the meeting with Shore Gold Inc. days after the company announced it was in “preliminary negotiations” with an unnamed third party over its mineral properties and as a separate six-month consultation process with the provincial government comes to a close.

“All I’m asking is for them to come to my community and come and express their thoughts with my people,” Burns said, adding that the last Shore Gold executive he met with was its former vice-president of corporate affairs, who left the Saskatoon-based company in early 2012 as it worked to reduce costs in the face of global economic uncertainty.

Burns said while he is not opposed to the $2.5 billion-mine going ahead, the ongoing effects of the Husky Energy Inc. pipeline spill into the North Saskatchewan River last July made him more aware of the importance of preserving his band’s traditional hunting and fishing lands.

“I think my people have known this forest for a long, long time,” he said.

Shore Gold staked its first claim in the forest in 1995. The mine project received environmental approval from the federal government in 2014; former environment minister Leona Aglukkaq said at the time it was “not likely to cause significant adverse environmental effects when (proposed) mitigation measures … are taken into account.”

The company has not, however, received environmental approval from the provincial government.

Earlier this year, the Saskatchewan government committed $137,000 to a second round of consultations with James Smith Cree Nation after a public review uncovered what a government official described as “issues that had not been addressed.”

Ministry of Environment spokesman Darby Semeniuk said in an email this week that the consultations began in early 2017 and are “on track.” Once the consultations are concluded, the ministry will “evaluate all pertinent information” before deciding whether to issued environmental approval for the mine, Semeniuk said.

Shore Gold president and CEO Ken MacNeill said the company has not heard from the James Smith Cree Nation since the groups exchanged letters earlier this year. However, MacNeill continued, “we can understand that because they’re doing an awful lot of work with the government and we fully support both sides on that.”

MacNeill did not specifically commit to meeting with Burns, but said the company is looking forward to hearing from James Smith Cree Nation. Shore Gold is also looking forward for a response from the Ministry of Environment, which has not to date made any further requests for information, he added.

Shore Gold’s communication efforts have also been criticized by some of its shareholders. At its annual meeting last June, a contentious proxy vote engineered by concerned shareholders came within a few percentage points of ousting three of the company’s directors. Shore Gold’s chairman deemed the vote illegal but allowed the results to stand.




Shore Gold confirms ‘preliminary’ deal negotiations as share price hits five-year high

Shore Gold confirms ‘preliminary’ deal negotiations as share price hits five-year high

Published on: June 5, 2017 | Last Updated: June 5, 2017 4:53 PM CST


Shore Gold Inc’s Star-Orion-South diamond property east of Prince Albert, Sask. SASKATOON

A Saskatoon-based diamond exploration and development company has confirmed it’s in “preliminary negotiations” with an unnamed third party about a transaction involving its mineral properties.

Shore Gold Inc. issued the statement Monday, a few days after speculation surrounding the unexpected cancellation of its annual meeting drove its share price to a five-year high of $0.435. Its share price last climbed above $0.40 in early 2012.

“No agreement has been reached and there is no assurance that these discussions will continue or that any transaction will be agreed upon,” Shore Gold said in a terse statement, which it said was issued in response to “recent trading activity” involving its shares.

“If the discussions result in agreement upon a transaction, of which there is no certainty at this time, an announcement will be disclosed in accordance with applicable legal and regulatory requirements,” the statement said.

Shore Gold announced last week that the meeting, which had been scheduled for June 30, would be held later in the year. The new date for the 2017 meeting has not been set “but it is anticipated that it will be set shortly,” the company said in a news release.

Ken MacNeill, the company’s president and CEO, said last week that the board decided “it’s the best thing for the corporation to hold it a little later.” MacNeill said he could not comment further as he cannot speak on behalf of the board of directors.

Shore Gold has been working to establish a $2.5 billion diamond mine on its Star-Orion property in the Fort à la Corne forest east of Prince Albert since 1995. Its updated feasibility study is expected to project a “significant” reduction in capital costs.

The postponement comes three months after the SGF Shareholders Association Inc., a group of Shore Gold investors concerned about the company’s direction and communications, said it planned to continue working to shake up its board of directors.

A controversial proxy vote at the company’s last annual meeting in June 2016 came within a few percentage points of unseating three of its directors. Shore Gold’s chairman deemed the vote illegal but allowed the results to stand.

Reached by phone, SGFSA spokesman David Wright said the association was not yet ready to comment on the meeting’s postponement.





Shore Gold


June 5, 2017

Stock Symbol: SGF:


TSX Saskatoon, Saskatchewan SHORE GOLD RESPONDS TO RECENT TRADING ACTIVITY Shore Gold Inc. (TSX:SGF) (“Shore”) today issued, at the request of IIROC, on behalf of the Toronto Stock Exchange, the following statement in response to the recent trading activity in its common shares:

Shore is engaged in preliminary discussions regarding a potential transaction with a third party involving an earn-in on Shore’s mineral properties. However, no agreement has been reached and there is no assurance that these discussions will continue or that any transaction will be agreed upon. Until such time as it is appropriate to make a public announcement on any potential transaction, should one occur, Shore Gold will not comment further on this matter. If the discussions result in agreement upon a transaction, of which there is no certainty at this time, an announcement will be disclosed in accordance with applicable legal and regulatory requirements.

Caution Regarding Forward-Looking Statements

This press release contains “forward-looking statements” and/or “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expect”, “is expected”, “in order to”, “is focused on” (a future event), “estimates”, “intends”, “anticipates”, “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, or the negative connotation thereof. These forward-looking statements are based on Shore’s current beliefs as well as assumptions made by and information currently available to Shore. Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. We caution readers not to place undue reliance on these statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates and intentions expressed in such forward-looking statements.



Saskatchewan Mining Week Promotes Innovation, Adaptation

Saskatchewan Mining Week Promotes Innovation, Adaptation

Released on May 29, 2017

The impact and contributions of the province’s mining industry will be the focus of Saskatchewan Mining Week, which was officially proclaimed today at the Legislature Building in Regina.

Organized by the Saskatchewan Mining Association (SMA) to promote awareness of the people and activities that comprise the industry, the overall theme of this year’s week is “Mining in Transformational Times”.

sma miing employees

“This year’s theme speaks to the resiliency and innovative spirit that defines the qualities of Saskatchewan’s dynamic mining sector,” Energy and Resources Minister Dustin Duncan said.  “Part of our job in government is to do our best to enable businesses to invest in our province, helping to create sustainable jobs and grow our economy.

“SMA member companies have made multibillion dollar investments in Saskatchewan over the past decade,” Saskatchewan Mining Association Chair Jessica Theriault said.  “And because of these investments, mining remains a key pillar of Saskatchewan’s economy in these transformational times.”

sma mining #1

Saskatchewan is the largest potash producer in the world, possessing almost half of the world’s potash reserves, and is the world’s second largest primary uranium producer, with a catalogue of other minerals such as gold, base metals, clays, coal and diamonds.

Saskatchewan ended 2016 with a total value of all mineral sales of $6.4 billion, and led all provinces in mining capital expenditures, according to Natural Resources Canada.  Among the events scheduled during Mining Week will be the 49th Annual Emergency Response/Mine Rescue Skills Competition to be held at Prairieland Park in Saskatoon on Saturday, June 3.

For a complete schedule and further information, please visit


For more information, contact:

Deb Young
Phone: 306-787-4765




Saskatchewan will have the second-highest economic growth rate in the country in 2017


Western Provinces to Lead Economic Growth In 2017

BHP jansen at sunrise

Ottawa, May 29, 2017—Alberta and Saskatchewan are expected to emerge out of recession and lead the provinces in economic growth this year, according to The Conference Board of Canada’s Provincial Outlook: Spring 2017. British Columbia is forecast to see growth ease this year, but the province will still tie with Saskatchewan for second place.

“The difficulties in the resources sector are slowly dissipating and helping Alberta and Saskatchewan emerge out of recession. However, the turnaround is still in its early stages and a full recovery will take time,” said Marie-Christine Bernard, Associate Director, Provincial Forecast, The Conference Board of Canada. “Economic prospects are also improving across the country, but continued weakness in business investment—both in and out of the resources sector—could hurt economic growth in all provinces down the road.”


  • Alberta will have the fastest growing provincial economy this year, with real GDP forecast to increase by 3.3 per cent.
  • Saskatchewan and British Columbia’s economy will tie for second place, both expected to grow at 2.5 per cent this year.
  • With the exception of Newfoundland and Labrador, all provinces will see their economy expand this year.

Following two years of contractions, Alberta’s economy is expected to outperform all provinces and grow by 3.3 per cent this year. Non-conventional oil production in the province will see a big increase this year thanks to new capacity coming online, while energy investment is expected to make a comeback this year and next. Outside of the energy sector, Alberta is benefiting from improvements in labour markets, consumer demand, and the housing sector. A bright outlook for the province’s manufacturing sector as a result of the new Sturgeon refinery, along with the rebuilding efforts in Fort McMurray, will also contribute to Alberta’s strong economic growth this year.

Saskatchewan’s economy is on a more solid foundation than it was one year ago. The energy outlook is more positive as drilling bounced back last winter and oil production is expected to increase at a good pace over the near term. As well, adaptation to the low-oil-price environment has led to growing investment into cost-effective thermal extraction technology, which will provide a significant boost to construction over the next three years. The province’s labour markets are also starting to turn around, boosting growth in household spending. In all, Saskatchewan’s economy is forecast to grow by 2.5 per cent in 2017.

After growing by 3.7 per cent in 2016, real GDP growth in British Columbia is expected to reach 2.5 per cent in 2017.  British Columbia’s housing market has lost some steam, but has proven to be more resilient to cooling measures. Still, the slowdown in housing activity will be felt in other parts of the provincial economy. Employment, wages, and household spending are all expected to see growth ease. The province’s forestry industry will also struggle over the near term as it deals with the duties on Canadian softwood lumber.

Ontario’s economy will continue to perform well, but it is forecast to lose some speed and grow by 2.3 per cent in 2017. Consumer finances are stretched and the hot housing market in southern Ontario is expected to cool as the new measures to re-balance the market take place. Exports have been growing at a stronger pace than the national average, but the lack of business investment will limit growth prospects going forward.

Manitoba’s economy is forecast to expand by a solid 2.1 per cent in 2017, slightly lower than last year’s growth. The province will continue to see strong construction activity as investment in the Keeyask dam ramps up and work continues on the Bipole III transmission line. Manufacturing will remain a growth driver for the province, with bright spots in transportation, equipment manufacturing and food processing.

Quebec saw an improvement in economic growth last year and this will continue in 2017, with real GDP forecast to advance by 1.8 per cent this year. Consumer spending will continue to be one of the pillars of growth for the province, as tax cuts and strong job creation leave Quebeckers with more spending money in 2017. This, in turn, will provide a boost to the province’s services-based industries. However, the probability that greater protectionist measures will be put in place in the U.S. in the coming years presents a significant downside risk to the province’s export outlook.

The Atlantic provinces will see only modest expansion over the next two years as they deal with an aging population that is limiting growth in labour supply.

Newfoundland and Labrador will be only province in recession this year, contracting by 3.0 per cent. However, the province will benefit from oil production at the Hebron project starting next year and real GDP is forecast to bounce back strongly.

Nova Scotia’s outlook is among the weakest in Canada, forecast to advance by only 0.5 per cent this year. Although ongoing shipbuilding work in Halifax is providing a boost to the manufacturing sector, the province’s construction industry is facing declines over the next two years as major projects are completed and there are few major investments on the horizon.

Despite New Brunswick’s goods-producing sector facing better prospects over the next two years, weak business investment and shifting demographics will limit GDP growth to 1.0 per cent this year.

Prince Edward Island has the best growth prospects among the Atlantic provinces, with real GDP forecast to expand by 1.8 per cent in 2017. The Island’s economy is being bolstered by tourism as well as by a strong performance in the manufacturing sector, especially in the food products and in aerospace services.


For more information contact

Corporate Communications




Jessica Theriault elected first woman to head Sask. Mining Association

Jessica Theriault elected first woman to head Sask. Mining Association

Published on: May 26, 2017 | Last Updated: May 26, 2017 3:19 PM CST


Mosaic K3 headframe
The headframe at Mosaic Co.’s newly-expanded K3 mine near Esterhazy. TROY FLEECE / REGINA LEADER-POST

The association representing Saskatchewan’s potash and uranium miners has for the first time in its 52-year history elected a woman as its chair.

Members of the Saskatchewan Mining Association (SMA) elected Mosaic Co. environmental affairs director Jessica Theriault for a two-year term, the organization said in a news release.

Theriault replaces Cameco Corp. chairman Neil McMillan and will serve alongside Tammy Van Lambalgen, Areva Resources Canada Inc. vice president of corporate affairs.

“Given the importance of mining to the Saskatchewan and Canadian economies … my focus as Chair will be to ensure that we continue to deliver, but also drive improvements across the sector,” Theriault said in a statement.

The SMA said in a news release that the election of Theriault and Van Lambalgen “represents a significant milestone in signalling the growing leadership role of women in mining.”

While gender imbalance in the province’s mining industry remains significant, groups like the SMA and Women in Mining and Women in Nuclear Saskatchewan are working to change that.

Theriault, who holds an engineering degree and MBA from the University of Regina, has almost two decades of experience in the potash industry and oversees Mosaic’s potash business unit.




Startup uses blockchain to ensure minerals come from ethical sources

Startup uses blockchain to ensure minerals come from ethical sources


Special to The Globe and Mail

Published Thursday, May 18, 2017 5:00AM EDT

Last updated Wednesday, May 17, 2017 4:30PM EDT


Dawn Jutla says her company has the technology to help put an end to the shady practice of mining precious and industrial metals to finance war.

Ms. Jutla, the president and CEO of Halifax-based startup Peer Ledger, is staking its future on a blockchain technology called Mimosi that it says can track precious metals throughout the supply chain to ensure every milligram purchased by buyers has come from an ethical source and is not funding armed conflict in war-torn countries like the Democratic Republic of Congo.

Mineral mining from ethical sources

“This is important because of the damage buyers are seeing being done at the source mines among the Indigenous people who live in the area,” says Ms. Jutla, a professor of technology, entrepreneurship and innovation at St. Mary’s University in Halifax. “When I say damage I am talking about children being raped and used for labour in mines. End users of these metals are trying to use their purchasing power to prevent that.”

But tracking the origin of metals like gold and silver to ensure they don’t come from a mine run by armed groups can be difficult. For example, a bar of gold is usually produced from ore from several sources requiring end users to track those multiple sources. And while standards, programs and guidelines exist aimed at verifying the source of these metals, it can be time-consuming and costly to gather that documentation.

However, Ms. Jutla says there is mounting pressure from the international community to stop the unethical production of minerals, and she says Peer Ledger’s Mimosi product provides a solution to this problem. Mimosi uses a private permissioned blockchain, which chronologically and permanently logs information that’s copied across a computer network accessed by multiple collaborating parties. When a transaction is carried out, it’s grouped together in a cryptographically protected block. In the case of the Mimosi technology, every transaction involving a source of ore can be linked back to older blocks containing previous sales transactions for the ore. This allows Mimosi users to trace gold and other precious and industrial metals (mainly tin, tantalum and tungsten) from the refiner, to the processor, to the distributor.

But can the startup be successful selling a technology that’s largely unknown and few people understand? Toronto’s William Mougayar, an entrepreneur, advisor and author of the book The Business Blockchain: Promise, Practice, and Application of the Next Internet Technology, says nothing is certain in the startup game. “Getting users and customers is the biggest challenge any startup has. Customers are typically reluctant to change habits if they are happy with their current solutions,” Mr. Mougayar says. “It’s too early to tell if Peer Ledger will be successful before seeing real signs of traction and customer engagements.”

Peer Ledger was incorporated in April of 2016 and currently has just three employees. But Ms. Jutla has big plans for the company. It recently launched Mimosi in Paris at the Organization Economic Co-operation and Development’s 11th Forum on Responsible Mineral Supply Chains. She says the reaction to Mimosi at the Paris forum was encouraging, although the company has yet to sign on any customers for the product. “This is a product that will impact the industry,” she says. “We got a lot of interest from people in the field and a lot of interest from the downstream and upstream portions of the industry.”

The trick now is to turn that interest into revenue. Halifax is not a mining or jewelry industry hotbed. That’s why privately owned Peer Ledger plans to build an international team to market and sell Mimosi. Ms. Jutla expects the company will face plenty of competition. Companies around the world are searching for ways to commercialize blockchain. According to PricewaterhouseCoopers, $1.4-billion was invested globally in blockchain startups in the last nine months of 2016.

Mr. Mougayar says Peer Ledger’s competition is already out there. “There are at least half a dozen companies already in the supply chain/provenance market, which Peer Ledger fits in,” he says. “[Mimosi] could provide more supply chain visibility and transparency, but the actors and stakeholders need to want this.”

Ms. Jutla is confident customers will want Mimosi. Not only does she think the technology will make it tougher for unethical sources of precious and industrial metals to make it into the supply chain, she says it will reduce a client’s compliance costs in this area by 75 per cent.

“I would not be spending so much time on this if I didn’t think we could execute,” she says. “We intend to stay ahead of the curve by always having the better solution. We are doing the right things. But you always need a little bit of lady luck, too.”





BHP ditching ‘Billiton’ in $10 million rebranding mov

BHP ditching ‘Billiton’ in $10 million rebranding move

Cecilia Jamasmie

May 15, 2017

BHP iron ore

Rebranding is part of BHP’s efforts to emphasize its Australian roots. (Image iron ore operations in Australia, courtesy of BHP Billiton)

BHP Billiton (ASX, NYSE:BHP) (LON:BLT) is rolling out a $10 million rebranding campaign that will see the world’s largest mining company become simply “BHP” in an attempt to emphasise its Australian roots.

The move, announced Monday, comes on the heels of calls from shareholders including activist investor Elliott Management and Australia’s Tribeca Investment Partners to change its corporate structure and incorporate in the UK.

“In launching Think Big, we will take the opportunity to change our logo and move to a brand that Australians have known us by for generations – BHP,” the firm said.

The advertising campaign includes 30-second television ads, a three-minute online video and a new slogan, “Think Big”, to facilitate a change that according to the company has been in the making for quite a while.

“We started working on this 18 months ago. We realized we had to start by telling people what BHP Billiton is and what we do,” chief external affairs officer, Geoff Healy, said in a statement.

“In launching Think Big, we will take the opportunity to change our logo and move to a brand that Australians have known us by for generations – BHP,” Healy noted, adding the expression is already widely used colloquially around the world to refer to the company.

The rebranding, the first since BHP used the late actor Bill Hunter 30 years ago in its “Big Australian” promotion, can also be seen as an effort to gain back public trust after the damage to the firm’s image caused by the November 2015 dam burst at its Samarco joint-venture in Brazil. Such incident killed 19 people and caused widespread environmental harm.

It also coincides with chief executive Andrew Mackenzie’s visit to Spain this week, where he’ll face investors at the Bank of Merrill Lynch mining conference.

While the Melbourne-based miner is changing name and logo, it is not modifying its registered name, which will remain BHP Billiton.

Watch some of the ads below:




Dominion Diamond shares rise on report of possible CPPIB bid

Dominion Diamond shares rise on report of possible CPPIB bid

The Canada Pension Plan Investment Board (CPPIB), the country’s biggest public pension fund, is considering a bid for Dominion Diamond Corp and is studying the miner’s books, people familiar with the process told Reuters.

The move comes after Dominion, the world’s third largest diamond producer by market value, put itself up for sale in late March, following an unsolicited $1.1-billion approach from U.S. billionaire Dennis Washington.

Shares of Dominion Diamond rose as much as 6.1 per cent in Toronto trading and as much as 8.1 per cent in New York.

CPPIB, with assets of $298-billion under management, and Dominion both declined to comment.

The sources, whom Reuters spoke to over a period of several days, declined to be named as the talks are confidential.

It is unlikely that CPPIB will make an offer for Dominion on its own, and if CPPIB decides to proceed with a bid, it may financially back a partner with mine operation expertise, the sources said.

CPPIB is one of more than five parties that have signed an agreement with Dominion to get access to its confidential data, one source said.

Canadian small producer Stornoway Diamond Corp held merger talks with Dominion earlier this year, Reuters reported, but it is unclear if it will make a formal bid. Stornoway declined to comment.

Stornoway declined to comment.

There is no certainty that CPPIB, which manages Canada’s national pension fund and invests on behalf of 20 million Canadians, will submit a bid, said the sources.

The pension fund also looked at Dominion’s books in 2015, two sources said, when the company worked with investment bank Rothschild & Co to find ways to boost shareholder value, including a potential sale.

Completing due diligence on Dominion, which owns a majority stake in the Ekati mine and a minority share of the Diavik mine, both in Canada’s Northwest Territories, will likely take four to six weeks, one source said.

Interested parties, including Washington, signed confidentiality agreements to get access to company data, Dominion said on May 1. It said there was no timetable for its review of strategic alternatives.

Washington, whose privately held company has interests in mining, marine and rail transportation and heavy equipment distribution, was not immediately available for comment.

Dominion has already rebuffed a $13.50 a share takeover proposal from Montana-based Washington that it called an “opportunistic” bid that undervalued the company.

Dominion, which hired Toronto-Dominion Bank to run the sales process, holds its annual meeting in Toronto on June 13.

There has been ongoing market speculation that offers may come from global miners Rio Tinto and Anglo American’s De Beers unit.

Rio and Anglo declined to comment on Thursday.

Rio holds a 60 per cent stake and operates in Diavik, while De Beers operates the Gahcho Kue diamond mine in the same territory with Mountain Province Diamonds Inc.

Rio is not expected to move quickly on Dominion, two sources said, and will likely decide its strategy after other companies have announced their plans.

Shore Gold Inc. Announces First Quarter Results – Diamonds in Saskatchewan

Shore Gold Inc. Announces First Quarter Results

Stock Symbol: SGF: TSX


SASKATOON, May 3, 2017 /CNW/ – Shore Gold Inc. (“Shore” or the “Company”) reports that the unaudited results of Shore’s operations for the quarter ended March 31, 2017 will be filed today on SEDAR and may be viewed at once posted. A summary of key financial and operating results for the quarter is as follows:

The Company’s Star – Orion South Diamond Project (“Project”) is situated in the Fort à la Corne kimberlite field in central Saskatchewan. The Project includes the 100 percent Shore owned Star Diamond Project, as well as Star West and the Orion South Kimberlite, which fall within the adjacent Fort à la Corne Joint Venture (“FALC-JV”). Shore has a 69 percent interest in the FALC-JV and Newmont Canada FN Holdings ULC (“Newmont”) has a 31 percent interest.

Shore recently announced that it has successfully completed significant aspects of test work towards an updated feasibility study on the Project (See SGF News Release dated March 6, 2017). The work completed in recent months includes: X-ray Transmission (“XRT”) recovery of diamonds from Star pyroclastic kimberlite, ore processing data review, diamond parcel characterization, kimberlite particle size analysis and overburden removal investigations. These programs investigate the use of new technology for the efficient excavation of the open pit and improvements to the flow-sheet of the diamond processing plant, while simultaneously reducing pre-production capital costs and the time to initial diamond production.

For the quarter ended March 31, 2017, the Company recorded a net loss of $0.9 million or $0.00 per share compared to a net loss of $1.4 million or $0.01 per share for the same period in 2016. The losses during these quarters were due to operating costs and exploration and evaluation expenditures incurred by the Company exceeding interest income earned on cash and cash equivalents and short-term investments. Losses during the three months ended March 31, 2017 were lower than the same period in the previous year primarily due to higher expenditures that were incurred in the quarter ended March 31, 2016 relating to the 2016 drilling program. Exploration and evaluation expenditures incurred during the quarter ended March 31, 2017 were primarily related to work relating to geotechnical investigations and test work for the Project.

Selected financial highlights include:

Condensed Consolidated Statements of Financial Position As at

March 31,


As at

December  31,


Current assets $   2.3  M $   3.2  M
Capital and other assets 1.5  M 1.5  M
Current liabilities 0.2  M 0.3  M
Premium on flow-through shares and long-term liabilities 0.8  M 0.8  M
Shareholders’ equity 2.9  M 3.6  M
Consolidated Statements of Loss and Comprehensive Loss For the

Quarter Ended

March 31,


For the

Quarter Ended

March 31,


Interest and other income $   0.0  M $   0.0  M
Expenses 0.9  M 1.6  M
Flow-through premium recognized in income 0.0  M 0.2  M
Net and comprehensive loss for the period (0.9) M (1.4) M
Net loss per share for the period (basic and diluted) (0.00) (0.01)
Condensed Consolidated Statements of Cash Flows For the

Quarter Ended March 31,


For the
Quarter Ended March 31,


Cash flows from operating activities   $  (0.9) M   $  (1.4) M
Cash flows from investing and financing activities 0.0  M 0.0  M
Net decrease in cash (0.9) M (1.4) M
Cash – beginning of period 2.8  M 4.0  M
Cash – end of period 1.9  M 2.6  M


The 2016 core drilling programs were required to further expand the internal stratigraphy of the Orion South and Star Kimberlites extending and in-filling geological continuity from the successful programs of 2015. The Company intends to update the previous Feasibility Study with a revised mine plan, where new technology is applied to more efficiently remove the sand and clay of the overburden, in addition to the application of new technology in the processing plant. Preliminary calculations suggest that such an updated feasibility study can positively change the economic model for the Project by increasing the Mineral Reserve estimate and reducing the pre-production capital costs and schedule to diamond production.

In addition, the Company is proceeding with the environmental assessment process and is continuing to seek opportunities for development capital through participation in the Project by a third party or a syndicate of investors.

As of May 3, 2017, the Company had approximately $2.1 million in cash and cash equivalents and short-term investments (excluding $0.8 million in restricted cash). A portion of the Company’s cash and cash equivalents and short-term investments will be used to advance certain aspects of the Project, including work required for an updated feasibility study, the environmental assessment process, as well as for general corporate matters.

Caution Regarding Forward-looking Statements

This news release contains forward-looking statements within the meaning of certain securities laws, including the “safe harbour” provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. The words “may,” “could,” “should,” “would,” “suspect,” “outlook,” “believe,” “plan,” “anticipate,” “estimate,” “expect,” “intend,” and words and expressions of similar import are intended to identify forward-looking statements, and, in particular, statements regarding Shore’s future operations, future exploration and development activities or other development plans contain forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements related to the Feasibility Study; statements relating to mineral resources and/or reserves; statements related to the approval of the development of the Star – Orion South Diamond Project; statements relating to future development of the Star – Orion South Diamond Project and associated timelines; the environmental assessment and permitting process; the Company’s intention to seek developmental capital though participation by a third party or syndicate of investors; Shore’s objectives for the ensuing year, the optimization of the feasibility study, anticipated capital and operating cost savings and the anticipated positive change in the economic model for the Project; the aim of Shore to undertake additional studies and the potential updating of the feasibility study.

These forward-looking statements are based on Shore’s current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific.  Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world diamond markets, changes in diamond valuations, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Shore or its contractual partners, the effects of competition in the markets in which Shore operates, the impact of changes in the laws and regulations regulating mining exploration and development, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in Shore’s most recently filed Annual Information Form, annual and interim MD&A, news releases and technical reports.  Shore’s anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.

Although management considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to Shore, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events. Unless required by applicable securities law, Shore does not undertake to update any forward-looking statement that may be made.

SOURCE Shore Gold Inc.

For further information: or (306) 664-2202,

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CA, 224 – 4th Avenue SouthSuite 300 Suite 300, Saskatoon, SK, S7K 5M5, Canada

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