Shear Diamonds Ltd.

Shear Diamonds Ltd.

July 13, 2011 12:30 ET

Shear Announces Beginning of Process Evaluation at Jericho Diamond Recovery Plant and Intent to Commence Pit Dewatering

TORONTO, ONTARIO--(Marketwire - July 13, 2011) - Shear Diamonds Ltd (TSX VENTURE:SRM) is pleased to announce that performance tests in the diamond recovery plant and plant feed assessments at the Jericho Diamond Mine will commence by month end. Shear has notified the Nunavut Water Board, earlier this week, of this intent. These tests will be performed in accordance with all current regulatory authorizations and approvals, including our Type A Water Licence.

In addition, Shear announces that it will commence pit dewatering later this month. The pit has not been pumped out since Tahera suspended operations in June of 2008. A pit dewatering plan was submitted to the Nunavut Water Board in May of this year.

"Test processing of small amounts of stockpiled material through the diamond recovery plant will give Shear a better understanding of how this plant may be able to process existing varied stockpiled ore at site," said Julie Lassonde, Chairman & CEO. "These tests will provide Shear both with a parcel of diamonds indicative of the recovery reject pile and with key information as to how to modify the plant to aid in diamond recovery. These tests are at the heart of understanding how to restart operations at Jericho."

Water Licence Renewal Update: In regards to Shear's full Type A Water Licence Renewal Application submitted February 28, 2011, a Technical Meeting and Pre-hearing Conference were held in Cambridge Bay, Nunavut, on June 20-21, 2011. On June 24, 2011 the Board approved the Pre-Hearing Conference Decision along with the procedural direction for the public hearing scheduled for October 12 and 13th to be held in the community of Kugluktuk, Nunavut.

About Shear Diamonds Ltd.

Shear is a Canadian-based company focused on diamond exploration and development in Canada's North, where it explores established diamond districts and has discovered new ones. Shear currently has a portfolio of eight diamond projects, including three advanced projects with development potential. Shear holds a 100% interest in its recently acquired Jericho Diamond Mine and surrounding exploration assets, located in the Kitikmeot region of Nunavut.

On behalf of the Board of

Shear Diamonds Ltd.

Julie Lassonde, CEO & Executive Chairman

Pamela Strand, P. Geol., President

This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Shear's expectations are in its documents filed from time to time with the TSX or the TSX Venture Exchange and provincial securities regulators, most of which are available at Shear disclaims any intention or obligation to revise or update such statements.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Shear Diamonds Ltd.
    Julie Lassonde
    CEO and Executive Chairman
    416-479-8728 or 1-866-298-9695
    416-703-9014 (FAX)

    Shear Diamonds Ltd.
    Pamela Strand, P. Geol
    416-479-8728 or 1-866-298-9695
    416-703-9014 (FAX)