Shear Diamonds Ltd.
TSX VENTURE : SRM

March 08, 2011 09:44 ET

Shear Announces Extension of Type A Water Licence for Jericho Diamond Mine

EDMONTON, ALBERTA--(Marketwire - March 8, 2011) - Shear Diamonds Ltd. (TSX VENTURE:SRM) today announces that the Company has been granted a 12-month extension to the term (to March 1, 2012) for its Type A Water Licence for the Jericho Diamond Mine, Nunavut. This extension was granted by the Nunavut Water Board (NWB), following approval by the Federal Indian and Northern Affairs Canada (INAC) Minister, the Honourable John Duncan.

"One of our goals for 2011 is to renew the Type A Water Licence for Jericho," said Pamela Strand, President and CEO. "We are very pleased with this term extension as it will enable Shear to proceed with the full renewal process. Normally a company would begin the renewal process of a Type A water licence at least 18 months prior to expiration. We did not have that opportunity as the water licence was to expire just 4 months following the close of our acquisition. We worked closely with the NWB, the Kitikmeot Inuit Association (KIA) and INAC to develop a plan forward. We set some very aggressive milestones for our team and contracted EBA Engineering to help us achieve these goals. Our team, including EBA, have worked very hard over the past 4 months and were able to meet all of the targets to submit the water licence renewal, along with 13 updated plans, to the Nunavut Water Board on February 28, 2011 as committed."

This cooperative approach, in developing the strategy to keep the mine permitted, has contributed greatly to the successes achieved thus far. Shear fully recognizes the assistance of the NWB and INAC and the support of the KIA and the Nunavut Impact Review Board (NIRB).

Permitting Updates

  • In addition to the extension request submitted on January 31, 2011, Shear prepared an extensive and comprehensive Care and Maintenance Plan for the Jericho Diamond Mine which included four additional plans.
  • On February 28, 2011 Shear submitted the full and comprehensive Type A Water Licence renewal application package along with 13 additional updated plans in support of the application.
  • Shear has also submitted applications in order to conduct exploration activities on nearby Jericho claims, these include; a Type B water licence application, and land use permit applications on both Crown and Inuit Owned lands.

Shear will continue to work closely with all stakeholders, including local communities, governments and interested parties, during the licence renewal process. "Our team is already reviewing the other regulatory instruments governing the Jericho Diamond Mine," said Executive Chairman Julie Lassonde. "We have accomplished a great deal already and look forward to a very exciting year."

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. Jericho is Nunavut's first and only diamond mine.

Pamela Strand, P. Geol., Shear's President and Chief Executive Officer, and Jennifer Burgess, P. Geo. Shear's VP Exploration, are qualified persons for purposes of National Instrument 43-101 who supervised the preparation of the information forming the basis for this press release.

On behalf of the Board of
SHEAR DIAMONDS LTD.

Pamela Strand, P. Geol., President & CEO
Julie Lassonde, Executive Chairman

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 www.sedar.com. Shear disclaims any intention or obligation to revise or update such statements.

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

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