Mine Holds 8 Billion In Diamonds

Published on 23/07/11

An estimated $8.3 billion US in diamonds at the Star-Orion South project near Prince Albert is enough for Shore Gold Inc. to say it’s worth the cost to build a mine at the site.

Results of a feasibility study indicate it’s economically feasible to dig up diamond-bearing kimberlites, sort through the ore and process the most precious of gemstones in Saskatchewan’s Fort a la Corne forest.

“The robust economics confirm that a world class diamond mine is feasible in central Saskatchewan,” stated Shore Gold’s president and CEO Kenneth MacNeill in a news release on Thursday.

No one from the company was made available to speak to The StarPhoenix.

The study indicates some 34.4 million carats are located within the Star-Orion South project, with each worth an average price of $242 US. Also increasing the site’s economic strength is its proximity to highways, railroads, power, water and labour. The project is located about 60 kilometres east of Prince Albert.

Such an operation — which would be the province’s first diamond mine —would incur $1.9 billion US in pre-production costs. Over the estimated 20-year life of the mine, total capital costs would be in the neighbourhood of $2.5 billion.