Shore Gold reported a net loss of CAD 458 million in 2008 ($369 million), compared to a profit of CAD 7.5 million ($6 million) the previous year. The loss was due to a CAD 561 million ($452 million) write-down of previously capitalized mineral properties, the diamond development company explained. Shore Gold’s operating loss for the year improved 11 percent to CAD 5.5 million ($4.4 million).

Shore Gold is focused on advancing the Orion South and Star Diamond Project in the Fort à la Corne forest in central Saskatchewan. It also owns a stake in the Buffalo Hills project in partnership with Diamondex Resources Limited.

Shore Gold reported that it has recovered 1,816.33 carats at Orion South since underground bulk sampling began in the second quarter of 2008. The company owns a 60 percent stake in Orion as part of its FALC joint venture in partnership with Newmont Mining Corporation of Canada Limited. For its Star Diamond Project, Shore Gold increased its mineral resource estimate by 23 percent from the initial estimate published in June, reporting an indicated resource of 152 million tonnes at a grade of 13.5 carats per hundred tonnes (cpht), and inferred resources of 26 million tonnes at 11.7 cpht at the site.

Shore Gold reported that it ended the year with CAD 20 million ($16.1 million) in cash on its balance sheet, which will be used to complete the pre-feasibility study at Star, to fund the planned FALC-JV and Buffalo Hills JV exploration programs, and for general corporate matters. Its project budgets for 2009 include CAD 2.5 million ($2 million) allocated to Star and CAD 10.5 million ($8.5 million) for the FALC-JV.

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