Category Archives: diamonds

Saskatchewan diamond update

Diamond & Specialty Minerals Summary for Dec. 11, 2017

by Will Purcell

Stockwatch

Shore Gold FALC aerial

Ken MacNeill and George Read’s Shore Gold Inc. (SGF) spun its treadmill again today, dropping one-half cent to 16 cents on 408,000 shares. The company had officially been maintaining a silence regarding its Star-Orion South diamond project in central Saskatchewan, but it made a presentation last week to the Diamond Development Advisory Committee (DDAC), which met in Melfort. (The committee, which includes representatives of communities and First Nations groups near the project, was established by Shore Gold at the height of its promotion several years ago, but there has not been much need for advice for the past few years.) The new meeting of the DDAC is the result of Shore Gold having granted Rio Tinto an option to earn a 60-per-cent interest in the project, in exchange for $70.5-million in new work, including drilling and a feasibility study.

Shore Gold’s new presentation — 26 slides accompanied by Mr. Read’s eternal optimism — was for the most part a reminder of Shore’s effort over the past two decades; most of which occurred in the mid-2000s. Nevertheless, there were a few dollops of new information that confirm Rio Tinto’s intent to diligently recheck the work previously completed by Shore Gold a decade ago, which culminated in a 2011 feasibility study.

Rio Tinto has already begun the first phase of its four-phase program, an $18.5-million effort that will not give it an interest in the project, but which will hopefully provide confidence to proceed with a second phase, another $18.5-million drill program that will give it 51 per cent of the Fort a la Corne project. (Star and Orion South are but two of several huge kimberlites on the property, although they are the ones with the best shot of becoming a mine.)

Rio Tinto and Shore have wrapped up a 10-hole core drilling program that began in mid-October. The holes were described as “geotechnical investigations on the Star kimberlite,” but they are also pilot holes for their much larger bulk sampling program next year. While Shore never revealed the sites selected for the new bulk sampling, the company’s DDAC presentation shows the locations clearly. Seven of the 10 sites are within or on the perimeter of Shore Gold’s underground bulk sampling workings, while the other three are twins — or at least close siblings — to large-diameter bulk sampling holes that Shore drilled after its underground sampling.

Shore Gold’s latest resource estimate for Star, 193 million tonnes indicated at 15 carats per hundred tonnes (cpht) and 57 million tonnes inferred at 11 cpht, have rosier grades than the company’s raw bulk sampling data. Shore averaged 14.5 cpht across 75,400 tonnes of kimberlite mined from underground at Star, and just 7.1 cpht across 16,200 “theoretical tonnes” of kimberlite excavated by drilling. The grade variation is the big question facing Shore’s new partner and it was also a big reason that its previous partner, Newmont Mining Corp. (NEM: $34.67 (U.S.)) quit paying its share of the costs in 2009.

Mr. Read, Shore’s tireless senior vice-president of exploration, says that the large diameter drilling “can be an aggressive sampling method resulting in some diamond loss and breakage,” so he had the drilling grades “reconciled” with the underground grades using diamond size frequency curves. Mr. Read may be right; but Rio Tinto is clearly willing to spend nearly $20-million on its first phase of drilling to find out.

 

Equalization payments – 2018-19 – something’s wrong with this system

As Brad Wall posted on Facebook . . .

Equilization payments 2018-19

Quebec is cutting income taxes, sending cheques to parents, and will balance their budget.

Wondering where they got the money?

This year, Quebec is receiving $11.7 BILLION in equalization, which makes up 11% of their total revenue. That’s $650 MILLION more than last year.

Saskatchewan taxpayers are contributing $580 million to equalization just this year and again receive ZERO dollars in equalization as our finances struggle with the challenge of stubbornly low commodity prices.

Something isn’t right.

Saskatchewan Mining Association supports Government of Saskatchewan’s Climate Change Strategy

MEDIA RELEASE

Monday, December 4, 2017

FOR IMMEDIATE RELEASE

Regina:  The Saskatchewan Mining Association (SMA) is supportive of the Government of Saskatchewan’s Climate Change Plan which was released earlier today.  While the Saskatchewan Plan has a lower emissions threshold than the Federal Climate Change Plan, the sector-based, multi-faceted approach will ensure the ‘Made in Saskatchewan Plan’ is effective in reducing GHG emissions while ensuring the sustainability of Saskatchewan communities.

As Canada transitions to a low-carbon economy, the Saskatchewan Climate Change Plan features flexible compliance mechanisms, including adoption of innovative and best in class technology that will allow mining to continue to be a pillar of Saskatchewan’s economy while continuing to provide clean energy and food to the world.

The Saskatchewan mining sector is particularly sensitive to a price on carbon as it represents an additional direct cost for producers that international competitors aren’t paying. “Ensuring the mining sector remains globally competitive is vitally important to Saskatchewan, particularly in this period of low commodity prices,” said Pam Schwann, SMA President.    “We need to be mindful that, as we work to reduce GHG emissions, mining investments and jobs are not being exported to other international jurisdictions that don’t have the robust environment and safety regulatory framework that exists in Saskatchewan and Canada.”

Saskatchewan’s mining operations account for 3% of provincial GHG emissions. “Our members are committed to bringing our expertise to the table and working with the province to reduce GHG emissions from the mining sector.”  said Schwann.

-30-

About SMA

Saskatchewan Mining Association is an industry-driven organization representing the mining and mineral exploration industry with over 25 mining operations in the province.

SMA advocates on behalf of members on issues related to provincial and federal regulatory changes, develops and supports educational outreach programs, organizes and hosts public outreach and membership events.  Please visit http://saskmining.ca/

 

For more information please contact:

Pam Schwann, P. Geo, MSc

President, Saskatchewan Mining Association; (306) 757-9505

Shore Gold Inc. announces third quarter results

Shore Gold Inc. announces third quarter results

Stock Symbol: SGF: TSX

Saskatoon, SK, Nov. 9, 2017 /CNW/ – Shore Gold Inc. (“Shore” or the “Company”) reports that the unaudited results of Shore’s operations for the three and nine months ended September 30, 2017 will be filed today on SEDAR and may be viewed at www.sedar.com once posted. A summary of key financial and operating results for 2017 is as follows:

Highlights

  • Announced the consolidation of the Fort à la Corne mineral properties (including the Star – Orion South Diamond Project), resulting in Shore holding a 100% interest with Newmont Canada FN Holdings ULC (“Newmont”) increasing its interest to a 19.9% shareholder of the Company;
  • Announced the concurrent Option to Joint Venture Agreement with Rio Tinto Exploration Canada Inc. (“RTEC”) for the Fort à la Corne mineral properties (including the Star – Orion South Diamond Project);
  • Announced the related closing of a subscription by RTEC for 5.6 million Common Shares and 5.6 million Common Share purchase warrants for aggregate gross proceeds of $1.0 million;
  • Announced ten hole HQ core drilling program and geotechnical investigations on the Star Kimberlite
  • Working capital of $1.7 million at September 30, 2017;
  • Issued and outstanding shares of 361,005,822 at September 30, 2017

Overview
Shore is a Canadian natural resource company focused on exploring and developing Saskatchewan’s diamond resources.  The Company, as a result of the recent mineral property consolidation and earn-in agreement (as discussed below), is now in an enhanced position to advance its 100% held Star – Orion South Diamond Project (“Project”), which is situated in the Fort à la Corne kimberlite field in central Saskatchewan. Indicated Mineral Resources for the Project are 55.4 million carats (see SGF News Release dated November 9, 2015 and Technical Report filed December 21, 2015). In addition to the Indicated Mineral Resource Estimate, the Star and Orion South Kimberlites include Inferred Resources containing 11.5 million carats.

Consolidation of the Fort à la Corne mineral properties and Option to Joint Venture
During the quarter ended June 30, 2017, Shore announced that it has acquired (the “Newmont Acquisition”) all of Newmont’s participating interest in the Fort à la Corne joint venture (the “FalC JV”), resulting in Shore owning 100% of the of the Fort à la Corne mineral properties (including the Project), and has concurrently entered into an Option to Joint Venture Agreement (the “Option Agreement”) with RTEC pursuant to which the Company has granted RTEC an option to earn up to a 60% interest in the Fort à la Corne mineral properties (including the Project) on the terms and conditions contained in the Option Agreement (see SGF News Release dated June 23, 2017). Immediately after the closing of the Newmont Acquisition and issuance of common shares, Newmont held approximately 19.9% of the common shares issued and outstanding on a non-diluted basis.

Activities relating to the Star – Orion South Diamond Project
The Company and RTEC recently announced an HQ core drilling program, consisting of ten holes and some 2,500 metres of drilling, on the Star Kimberlite (See SGF News Release dated October 12, 2017). This core drilling is required to accurately document the internal stratigraphy of the Star Kimberlite prior to a proposed sampling program, which is expected to commence in 2018. In conjunction with this diamond drill program, geotechnical investigations on the overburden will also be conducted.

During the nine months ended September 30, 2017, the Company performed geotechnical investigations, assessments and test work that would be required for an updated feasibility study on the Project. The work completed included: 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.

In January 2017, the Company was informed by the Saskatchewan Minister of Environment that additional consultation is required between the government and First Nation and Métis communities for the government to meet its legal obligation with respect to duty to consult and accommodate process (See SGF News Release dated January 26, 2017). Since that time, the government proceeded with a work plan that enabled them to make significant progress by the end of the third quarter of 2017. The Ministry has indicated to Shore that once consultations with potentially impacted First Nation and Métis communities are completed, all pertinent information will be reviewed before a decision is made under The Environmental Assessment Act.

Quarterly Results
For the quarter ended September 30, 2017, the Company recorded a net loss of $0.6 million or $0.00 per share compared to a net loss of $1.1 million or $0.00 per share for the same period in 2016. The losses incurred during the quarters ended September 30, 2017 and 2016 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.

Year to Date Results
For the nine months ended September 30, 2017, the Company recorded net income of $41.6 million or $0.13 per share compared to a net loss of $4.4 million or $0.02 per share for the same period in 2016. Net income during the nine months ended September 30, 2017 was due to the partial reversal of previously recorded impairments relating to exploration and evaluation assets ($44.5 million). As a result of the Newmont Acquisition, the Company performed an assessment of the carrying value of exploration and evaluation assets. Based on this assessment, the carrying value of exploration and evaluation assets (which includes the Fort à la Corne mineral properties) was determined to be $66.3 million, resulting in a partial reversal of previously recorded impairments. Exploration and evaluation expenditures incurred during the nine months ended September 30, 2017 primarily related to work relating to geotechnical investigations and test work for the Project. The loss during the nine months ended September 30, 2016 was primarily due to ongoing operating costs and exploration and evaluation expenditures incurred by the Company exceeding interest income earned on cash and cash equivalents and short-term investments.

In connection with the Option Agreement, RTEC subscribed for 5.6 million units, for a gross subscription amount of $1.0 million, with each unit consisting of one common share and one common share purchase warrant. In addition, options and broker warrants were also exercised during the quarter ended June 30, 2017 for total cash proceeds of $0.4 million. In connection to the Newmont Acquisition, 53.8 million common shares and 1.1 million common share purchase warrants were issued to Newmont. The Company also agreed that Newmont will receive a contingent payment in the aggregate amount of $3.2 million upon a positive decision being made to develop a mine on the Project.  Shore, in its sole discretion (subject to regulatory approvals), may satisfy the contingent payment due to Newmont through a cash payment or the issuance of common shares. The estimated discounted present value of this contingent consideration at September 30, 2017 was determined to be $0.7 million.

Selected financial highlights include:
Condensed Consolidated Statements of Financial Position As at

September 30,

2017

As at

December  31,

2016

Current assets $  1.8 M $  3.2 M
Exploration and evaluation, capital and other assets 67.6 M 1.5 M
Current liabilities 0.1 M 0.3 M
Premium on flow-through shares 0.1 M 0.2 M
Non-current liabilities 1.4 M 0.6 M
Shareholders’ equity 67.8 M 3.6 M

 

Consolidated Statements of Loss and Comprehensive Loss Three Months
Ended
September 30,
2017
Three Months
Ended
September 30,
2016
Nine Months
Ended
September 30,
2017
Nine Months
Ended
September 30,
2016
Interest and other income $  0.0 M $ 0.0 M $ 0.0 M $ 0.0 M
Expenses 0.6 M 1.2 M 3.0 M 4.8 M
Flow-through premium recognized in income 0.0 M 0.1 M 0.1 M 0.4 M
Reversal of prior impairments to exploration and evaluation assets 0.0 M 0.0 M 44.5 M 0.0 M
Net and comprehensive income (loss) for the period (0.6) M (1.1) M 41.6 M (4.4) M
Net income (loss) per share for the period (basic and diluted) (0.0) (0.00) 0.13 (0.02)

 

Condensed Consolidated Statements of Cash Flows  Nine Months
Ended
September 30,
2017
Nine Months
Ended
September 30,
2016
Cash flows from operating activities $  (2.9) M $ (3.7) M
Cash flows from investing activities (0.6) M 0.1 M
Cash flows from financing activities 2.1 M 1.0 M
Net decrease in cash (1.4) M (2.6) M
Cash – beginning of period 2.8 M 4.0 M
Cash – end of period 1.4 M 1.4 M

 

Outlook
The successful completion of the consolidation of the Company’s Fort à la Corne mineral properties (including the Star – Orion South Diamond Project) and the concurrent earn-in arrangement with RTEC sets the stage for a new phase for the Company. It is the Company’s view that Rio Tinto is one of the few companies in the world with the resources and expertise to move forward with a project of the magnitude of the Star – Orion South Diamond Project. The Company is also very pleased to have acquired the remaining portion of the Project from Newmont and having Newmont as a significant shareholder.

As of November 9, 2017, the Company had approximately $1.4 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 complete the 2017 programs (including remaining flow-through commitments) and advance certain aspects of the Project, including the environmental assessment process and assessment and test work programs required for an updated feasibility study, 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 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; objectives for the ensuing year, including drilling and geotechnical programs and the re-optimisation of the open pit, the optimisation of the Feasibility Study and the anticipated positive change in the economic model for the Project.

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:

shoregold@shoregold.com or (306) 664-2202, www.shoregold.com

This information is being distributed to you by / Cette information vous est transmise par : Shore Gold Inc.

CA, 224 – 4th Avenue SouthSuite 300 Suite 300, Saskatoon, SK, S7K 5M5, Canada
http://www.shoregold.com

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Which industry best creates wealth and reduces poverty in Canada? Resources (as usual)

Which industry best creates wealth and reduces poverty in Canada? Resources (as usual)

Mark Milke: What’s in the ground helped produce a dramatic increase in living standards over the last decade

Special to Financial Post

October 24, 2017
7:30 AM EDT

oil project

With the recent cancellation of TransCanada’s Energy East pipeline — after the company spent $1 billion in attempts to jump through ever-changing regulatory and political hoops — it is time to remind ourselves as Canadians where much of our country’s recent economic uptick originated.

Answer: In resource exploration and extraction.

This was illustrated again recently, just before the TransCanada announcement, with Statistics Canada’s recent release of key census data. The data revealed how median Canadian household income rose to $70,336 by 2015, up almost $6,900 from $63,457 in 2005 or nearly 11 per cent.

The provincial breakdowns are even more revealing than the national figure. Median income went up by $20,161 in Saskatchewan (37 per cent), $18,151 in Alberta (20 per cent) and $15,068 in Newfoundland and Labrador (29 per cent).

In contrast to these booming provinces, manufacturing in Central Canada took a hit

As Statistics Canada noted, “An important factor in the economic story of Canada over the decade was high resource prices.” The agency further observed how “that drew investment and people to Alberta, Saskatchewan and Newfoundland and Labrador, boosted the construction sector, and more generally filtered through the economy as a whole.”

In contrast to these booming provinces, manufacturing in Central Canada took a hit. Incomes there barely rose: Quebec saw a modest $4,901 rise (8.9 per cent) and Ontario was a national laggard with incomes increasing by a paltry $2,753 between 2005 and 2015 (only 3.8 per cent higher).

Which is where a caveat should be added to the Statistics Canada commentary that “high resource prices” explain significantly increased incomes. High resource prices — be they for oil, gas, lumber or minerals — help, but only if a province or region allows its resources to be explored, extracted and then shipped to market.

The Maritimes mostly sat out the boom in resource prices

The Maritimes mostly sat out the boom in resource prices because, for example, Nova Scotia and New Brunswick banned onshore exploration and extraction of natural gas. That was unlike Saskatchewan, Alberta and northern British Columbia.

Unsurprising then, New Brunswick’s median income in 2015 was $59,347, the lowest among all provinces. It did record 15-per-cent growth over the decade, but that statistic looks less impressive given New Brunswick’s low point in 2005 and its still-lowest ranking today. As a comparison, New Brunswick’s median income in 2015 was almost $8,000 lower than in Newfoundland and Labrador, where incomes soared by almost double that of New Brunswick. A lack of private sector investment in a profitable energy resource sector will do that.

Quebec provides other examples, both of foregone opportunities and the potential for income growth, when governments say “oui” to Canada’s comparative advantage in resources instead of “non.”

Quebec missed much of the benefit of higher resource prices because of political opposition to oil and gas

Quebec missed much of the benefit of higher resource prices because of some local and political opposition to oil and gas development. But of note, when the resource sector was allowed to thrive in Quebec, it did. As Statistics Canada observed “several metropolitan areas in resource rich areas had relatively higher income growth.” They include Rouyn-Noranda (+20.4 per cent), Val D’or (+18.0 per cent) and Sept-Îles (+13.4 per cent). That’s more “green” in the pockets of workers.

The lesson should be obvious: One comparative economic advantage for Canada is in natural resources. And this matters not just for faster-growing median incomes but also for drops in poverty. For example, resource-friendly Newfoundland saw the St. John’s low-income rate fall to 12 per cent from 16 per cent. Saskatoon’s low-income rate fell to 11.7 per cent from 15.2 per cent.

In contrast, Ontario, affected by the loss of 300,000 manufacturing jobs, recorded dramatic increases in poverty rates. That includes London (where low-income rates rose to 17 per cent by 2015 from 13.3 per cent in 2005) and Windsor (up to 17.5 per cent from 14 per cent).

It is clear from the data that resources are a critical driver of employment and incomes

Some people would still respond to all this with the old line that Canadians should seek to be more than “hewers of wood and drawers of water” (a phrase that wrongly depicts the forestry and hydro sectors as backward). That notion makes little sense because Canadians can and do invent, run and expand businesses in every sector, from hi-tech, to green sectors to tourism and finance, in addition to resources. But it’s clear from the data that resources are a critical driver of employment and incomes in Canada.

Insofar as politicians overlook resource advantages and hobble the sector with endless, ever-changing regulation, they ignore how what’s in the ground helped produce a dramatic increase in Canada’s living standards over the last decade.

To belittle or even attack Canada’s comparative advantage in resources is to neglect the positive effect this sector has on Canadian living standards. Snubbing opportunities in developing natural resources comes at the expense of additional jobs and better incomes for the poor and the middle class.

Mark Milke is an author and energy analyst.

 

 

 

BHP presents united front against activist Elliott at AGM

 

BHP presents united front against activist Elliott

Reuters Staff

OCTOBER 19, 2017 / 11:23 AM / UPDATED AN HOUR AGO

By Barbara Lewis and Zandi Shabalala

LONDON, Oct 19 (Reuters) – The new chairman of BHP , the world’s biggest miner, threw his weight behind his CEO on Thursday after attacks from activist investor Elliott Advisers prompted speculation that the end of Andrew Mackenzie’s tenure was imminent.

Pressure has mounted on BHP and its chief executive since Elliott went public in April with its criticisms of the miner’s strategy.

“Any suggestion there is a set timeline around Andrew’s tenure is simply false and without merit,” Chairman Ken MacKenzie told reporters after his first AGM since taking office at the start of September.

Asked by a shareholder whether it was Elliott or the BHP board that was running the company, the chairman replied that “MacKenzie and Mackenzie” were running BHP, though he did not specify the order of the pair who share the same names but with slightly different spelling.

At least five representatives from Elliott Advisors, which holds 5 percent of BHP, attended the London meeting but did not ask questions from the floor.

Elliott declined to comment on Thursday, though it has welcomed the new chairman’s appointment.

Chairman MacKenzie said he had met more than 100 shareholders across eight countries, which he said gave him confidence, though he added that there are areas where the company needs to sharpen its focus.

He reiterated that work is in progress to sell shale assets, which is one of Elliott’s main demands, and that further action would take place to refresh the board of directors.

SKILLS REVIEW

“We recognise that the board needs to continue to evolve to take into account the rapidly changing environment in which we operate. So we will undertake a review of the board’s skills and experience requirements during this financial year,” he said.

BHP’s London share price has risen nearly 7 percent since the start of the year, about half as much as that of its main rival Rio Tinto.

Both the chairman and the CEO said they were striving to maximise shareholder value and that meant that shale assets would be sold only at the right price.

“We will be both urgent and patient as we examine all the options,” CEO Mackenzie said. “We have to get the timing right to maximise shareholder value.”

BHP’s big rival Rio Tinto suffered a setback this week when the U.S. Securities and Exchange Commission (SEC) charged the company and two of its former executives with inflating the value of coal assets in Mozambique and concealing critical information. The company said it would defend itself vigorously against the allegations.

Chris LaFemina, a mining specialist at Jefferies bank, said he had preferred Rio over BHP for the past two years.

“While our preference has not changed, BHP’s competitive position has modestly improved,” he said in a note.

“New chairman Ken MacKenzie seems willing to push for significant strategic changes at BHP … after years of unacceptable underperformance of its share price versus Rio‘s.” (Editing by Elaine Hardcastle and David Goodman)

Star – Orion South Diamond Project Core and Geotechnical Drilling Scheduled to Commence Mid-October

Star – Orion South Diamond Project Core and Geotechnical Drilling Scheduled to Commence Mid-October

Shore Gold FALC aerial
Stock Symbol: SGF: TSX

SASKATOON, Oct. 12, 2017 /CNW/ – George H. Read, P. Geo., Senior Vice President Exploration and Development of Shore Gold Inc. (“Shore” or the “Company”) is pleased to announce that Shore and Rio Tinto Exploration Canada Inc. (“RTEC”) have scheduled an HQ core drilling program, consisting of ten holes and some 2,500 metres of drilling, on the Star Kimberlite, to commence in mid-October 2017. This core drilling is required to accurately document the internal stratigraphy of the Star Kimberlite prior to a proposed large diameter drilling (“LDD”) mini-bulk sampling program, which is expected to commence in 2018. The core drilling program is being conducted by George Downing Estate Drilling Ltd. of Grenville, Quebec. Shore and RTEC geologists are responsible for the supervision of the drilling program and subsequent detailed core logging. In conjuction with this diamond drill program geotechnical investigations on the overburden are being conducted by Paddock Drilling of Brandon, Manitoba and ConeTech of Richmond, B.C. The ten hole locations that have recently been selected are in close proximity (10 to 15 metres) to the underground bulk samples and past 48 inch LDD holes and include areas of significant intersections (80 – 110 metres) of the Early Joli Fou (“EJF”) Kimberlite, the principal economic unit the Indicated Resources previously estimated by Shore for the Star Kimberlite in December 2015.

Senior Vice President Exploration and Development, George Read, states: “This core and geotechnical drilling program is an important precursor to a proposed LDD mini-bulk sampling program scheduled to commence in 2018. The selected locations of these core holes will act as pilot holes for the upcoming program.”

The Star-Orion South Diamond Project (the “Project”) is located in central Saskatchewan some 60 kilometres east of the city of Prince Albert. The Project is in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development. The Technical Report on the Revised Resource Estimate for the Project dated November 9, 2015 provided an updated Mineral Resource Estimate for the Star and Orion South kimberlite deposits: Indicated Mineral Resources of 393 million tonnes containing 55.4 million carats of diamonds at a weighted average price of US$210 per carat. In addition to the Indicated Mineral Resource Estimate, the Star and Orion South Kimberlites include Inferred Resources containing 11.5 million carats. Accordingly, the mineral reserves and economic assessment previously disclosed by Shore for the Project should no longer be relied upon. Shore has granted RTEC an option to earn up to a 60% interest in the Fort à la Corne mineral properties (including the Project) on the terms and conditions contained in the Option Agreement (see SGF News Release dated June 23, 2017). Completion of the proposed 2018 sampling program (First Option) does not entitle RTEC to an interest in the Fort à la Corne mineral properties (including the Project).

All technical information in this press release has been prepared under the supervision of George Read, Senior Vice-President of Exploration and Development, Professional Geoscientist in the Provinces of Saskatchewan and British Columbia, and Mark Shimell, Project Manager, Professional Geoscientist in the Province of Saskatchewan, who are the Company’s “Qualified Persons” under the definition of NI 43-101.

Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Exchange under the trading symbol “SGF”.

Caution Regarding Forward-Looking Statements

This news release contains forward-looking statements as defined by certain securities laws, including the “safe harbour” provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “forecast”, “target”, “project”, “guidance”, “may”, “will”, “should”, “could”, “estimate”, “predict” or similar words suggesting future outcomes or language suggesting an outlook. In particular, statements regarding Shore’s future operations, future exploration and development activities or other development plans constitute forward-looking statements. By their nature, statements referring to mineral reserves, mineral resources or TFFE constitute forward-looking statements.

Forward-looking statements in this press release include, but are not limited to statements with respect to the proposed core drilling program (including the number of holes to be drilled, the metres to be drilled, the timing of the drilling and the duration of the program), the proposed geotechnical program and Shore and RTEC’s objectives for the ensuing year, including the proposed 2018 sampling program.

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 prices, 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 joint venture partners, the effects of competition in the markets in which Shore operates, the impact of changes in the laws and regulations regulating mining exploration, development, closure, 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. 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 is made herein.

SOURCE Shore Gold Inc.

For further information:

shoregold@shoregold.com or (306) 664-2202, www.shoregold.com

This information is being distributed to you by / Cette information vous est transmise par : Shore Gold Inc.

CA, 224 – 4th Avenue SouthSuite 300 Suite 300, Saskatoon, SK, S7K 5M5, Canada
http://www.shoregold.com

If you wish to stop receiving these types of messages from us, you can unsubscribe at any time. / Si vous ne souhaitez plus recevoir ce type de messages de notre part, vous pouvez vous désabonner à tout moment.

 

Shore Gold AGM – Voting Results and Decisions

SHORE GOLD INC. ANNOUNCES THE RESULTS OF THE 2017 ANNUAL AND SPECIAL MEETING OF SHAREHOLDERS

Shore Gold Inc. (“Shore” or the “Corporation”) (TSX – SGF) is pleased to announce that all of the nominees listed in the management proxy circular dated July 28, 2017 were elected as directors of the Corporation at its annual and special meeting of shareholders held on September 6, 2017 (the “Meeting”).

In addition, shareholders also approved at the Meeting:

  • -a resolution to re-appoint KPMP LLP as the Corporation’s independent auditors;
  • a resolution to amend the Corporation’s articles of incorporation to change the name of the Corporation;
  • a resolution to restate the Corporation’s articles of incorporation; and
  • a resolution regarding the continuation of the Corporation’s amended and restated Shareholder Rights Plan.

Detailed results of the vote for the election of directors held at the Meeting are set out below:

Nominee Votes For Votes Withheld Number % Number %

  • Kenneth MacNeill 139,806,623 83.96% 26,699,657 16.04%
  • Harvey Bay 138,143,576 82.97% 28,362,704 17.03%
  • Arnie Hillier 136,337,120 81.88% 30,169,160 18.12%
  • Ewan Mason 163,984,692 98.49% 2,521,588 1.51%
  • Neil McMillan 141,002,254 84.68% 25,504,026 15.32%
  • Brian Menell 165,021,250 99.11% 1,485,030 0.89%
  • Peter Ravenscroft 165,579,587 99.44% 926,693 0.56%
  • Michael Ryer 164,287,935 98.67% 2,218,345 1.33%

The Company was advised that certain individuals had been appointed as proxyholders by a significant number of shareholders. Based on legal advice, the Chairman assessed that the solicitation of these proxies was not done in accordance with applicable laws in Canada regulating public companies. It was the Chairman’s view that, in soliciting proxies in this fashion, it was unfair to the shareholders of the Company as a whole in that only those shareholders who were solicited in this fashion were aware that a proxy contest was underway, which is the type of conduct the proxy solicitation rules preclude, in that they require that all shareholders have the same information in making their voting decision. It was clearly communicated at last year’s Meeting that to maintain the integrity of the Corporation’s voting procedures, all parties must comply with the law and any failure to comply with the law in the future will result in those votes being struck. Although these votes were inconsequential to the results, these individuals were warned last year. As a result, the Chairman disallowed these votes, resulting in 11,824,531 votes not being allowed to stand.

The name and trading symbol change will not come in to effect until certain regulatory step occur, as well as other

preparations required by the Corporation; a further press release will be issued when the name change becomes effective.

Voting results for all matters will be posted on SEDAR at www.sedar.com.

Shore is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Company trade on the TSX Exchange under the trading symbol “SGF”.

For further information: shoregold@shoregold.com or (306) 664 2202 www.shoregold.com

 

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Concerned Shore Gold shareholders fail to oust directors at annual meeting

Concerned Shore Gold shareholders fail to oust directors at annual meeting

ALEX MACPHERSON, SASKATOON STARPHOENIX

Published on: September 6, 2017 | Last Updated: September 6, 2017 5:39 PM CST

 

 Shore Gold FALC aerial

The chairman of a Saskatoon-based diamond exploration and development company says he hopes a decisive voting result at its annual meeting signals that the “frustration and dissatisfaction” expressed by some dissident shareholders is a thing of the past.

Brian Menell spoke moments after Shore Gold Inc. shareholders voted to change the firm’s name to Shore Diamond Corp. and elect to its board eight directors — including five incumbents — recommended by management.

“I think the source of frustration for many of our shareholders in the past has been the slow pace of finding a solution to move the project forward,” Menell said after the meeting. “We’ve now found a solution to move the project forward.”

That solution is an option agreement worth up to $75 million over seven years, which could result in a Rio Tinto Group subsidiary earning a 60 per cent stake in Shore Gold’s Star-Orion South diamond project east of Prince Albert.

The meeting was expected to mirror the company’s 2016 event, in which the SGF Shareholders Association Inc. — a group concerned about the company’s direction — came within a few percentage points of unseating three Shore Gold directors.

That did not happen. Although the company deemed some of the proxy votes present at the meeting illegitimate and did not allow them to stand, Menell said that “wouldn’t have made any difference anyway” to the final tally electing the eight directors.

SGF Shareholders Association chairman David Wright said after the meeting that with around 90 per cent of voting shares at the meeting out of the association’s hands, the concerned shareholders had little expectation of a positive result.

“This was pretty much largely what we thought was going to happen today — no surprises here,” Wright said, noting that the association will ask its members what its next steps should be at a meeting sometime this fall.

The nearly two-hour event ended with a question-and-answer session during which Shore Gold CEO Ken MacNeill and senior vice president of exploration and development George Read struck an upbeat tone about the company’s prospects.

They said Shore Gold, which has been trying to build a diamond mine in the Fort à la Corne forest since 1995, remains committed to working with Rio Tinto and significantly reducing the mine’s capital cost — estimated in 2011 at $2.5 billion.

Shore Gold is also waiting for environmental approval from the Government of Saskatchewan, and it is not clear when that will come. The federal government granted environmental approval for the massive open-pit mine project in 2014.

“My enthusiasm is increased as a result of the fact that we have got a big partner with the will, the appetite and the capacity to, in partnership with us, develop a producing mine in Saskatchewan,” Menell said of the recent deal with Rio Tinto.

Shore Golf is expected to publish the voting results, including those proxies that were deemed illegitimate, today.

 

 

 

Showdown with concerned shareholders expected at Shore Gold meeting

Showdown with concerned shareholders expected at Shore Gold meeting

ALEX MACPHERSON, SASKATOON STARPHOENIX
Published on: August 24, 2017 | Last Updated: August 24, 2017 6:00 AM CST

Shore Gold FALC aerial

An aerial view of Shore Gold Inc.’s Star-Orion South diamond project east of Prince Albert. SHORE GOLD INC.

 

A Saskatoon diamond exploration and development company’s annual meeting next month is shaping up to be another showdown between management and a group of concerned shareholders who want to shake up its board of directors.

Shore Gold Inc., which has spent the last two decades working to build a diamond mine east of Prince Albert, recently signed an option agreement with a Rio Tinto Group subsidiary worth up to $75 million in exchange for up to 60 per cent of the project.

However, the head of the SGF Shareholders Association Inc. (SGFSA), which was formed with the aim of improving communication between the company and its investors, said he doesn’t expect the deal to dampen support for its latest attempt to oust some directors.

David Wright said while it’s hard to say how each of the company’s investors reacted to the deal, he believes many are not happy with it and that it has not been reflected in the company’s share price, which hit a five-year-high of $0.44 before the deal was unveiled.

“At the end of the day, the one and only — and ultimate — judge of success or failure of any company is based pretty much entirely on its share price,” Wright said, noting that the company’s share price has since fallen back to just over $0.20 per share.

In a letter sent earlier this month, the SGFSA executive recommended its members on Sept. 6 “withhold” their votes from all but one of the company’s incumbent directors and vote for three new directors proposed by Shore Gold, plus two nominated independently.

At the company’s last annual meeting, Wright led an attempt to oust three of the company’s directors. The vote came within a few percentage points of succeeding but was subsequently deemed illegal by Shore Gold’s chairman, who nevertheless allowed it to stand.

Shore Gold’s executives said in an email to the Saskatoon StarPhoenix that the deal with Rio Tinto “sets the stage for a new phase for the company,” and that the firm’s current independent directors believe the nominees proposed by the firm are an excellent fit.

“Management and the board make decisions for the Company based on their view of the best interests of the company and all shareholders. We are extremely pleased to partner with Rio Tinto to further develop the potential of the project.”

Ken MacNeill, the company’s longtime president and chief executive who is also a non-independent director of the company, added in the email that he is always happy to meet with Shore Gold shareholders and that the same offer has been extended to the SGFSA.

Shore Gold’s shareholders are also expected to vote at the meeting on a proposal to change the company’s name to Shore Diamond Corp. In their letter to members, SGFSA executives recommended voting for the change.

 

 

 

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