Shore Gold has announced the results of a combined Feasibility Study done on the Star-Orion South Kimberlites, which include the firm's wholly owned Star Diamond Project, as well as Star West and the Orion South Kimberlite, which fall within the adjacent Fort ŕ la Corne Joint Venture (FALC-JV) in Saskatchewan, Canada. Shore owns 66 percent of the FALC-JV and Newmont Mining Corporation of Canada Limited owns the remaining 34 percent.
Kenneth MacNeill, Shore Gold President and Chief Executive Officer, says that "the robust economics confirm that a world class diamond mine is feasible in central Saskatchewan."
Highlights of the combined Feasibility Study show an expected total diamond production of 34.4 million carats, at a weighted average price of US$242 per carat, over a 20-year period. The study concludes that "robust project economics" over a 20-year Life of Mine due to proximity to infrastructure such as electric power, paved highways, railroads, water and labor in Saskatchewan.
Included in the Feasibility Study is the following timeline: a detailed design is planned to commence in second half of 2011; permitting activities to support the commencement of production could begin in the third quarter of 2012; SaskPower supply to the site during the fourth quarter of 2013; and processing plant commissioning approximately 4 years after acquiring the necessary permits to proceed with construction, aimed for 2016.
According to Shore Gold, the mine is expected to provide direct employment for hundreds of people throughout the construction phase and in excess of 500 people continuously over its 20 year operating life.
For more details on the feasibility study, click here: Shore Gold July 2011 Feasibility Study