Shear Minerals Ltd.

Shear Minerals Ltd.

May 02, 2007 10:00 ET

Shear Completes 400-Tonne Mini Bulk Sample at Churchill Project's Kahuna Kimberlite

New kimberlite discovered

EDMONTON, ALBERTA--(CCNMatthews - May 2, 2007) - Shear Minerals Ltd. (TSX VENTURE:SRM) and Stornoway Diamond Corporation (TSX:SWY) today announced that the collection of a 400-tonne mini bulk sample from the Kahuna kimberlite dyke on the Churchill project in Nunavut is now complete and that shipment of sample material off-site has commenced. In addition, a new kimberlite, KD308, located along a parallel structure close to the Kahuna dyke, has been discovered from drilling.

Bulk Sampling Update

Approximately 400 tonnes of kimberlite was collected from three surface pits situated along a strike length of 215 metres at the Kahuna kimberlite dyke. Locations were selected based on overburden depths of less than three metres. So far, 150 tonnes has been transported overland to Rankin Inlet and the remaining 250 tonnes at site is scheduled for shipment in the coming days. Part of the sample will be transported immediately to an independent processing facility with the remainder of the sample shipping to follow later by barge.

Not unexpectedly, the Kahuna kimberlite appears to be structurally controlled and displays local variability in width from one to four metres with wider zones within the sampling pits. One exposure in the sampling pit, for example, measured a true width of 4.7 metres. Additional delineation drilling will be required to determine its overall size and tonnage potential.

The aim of the bulk sampling program at Churchill in 2007 is to recover at least 200 carats of diamonds from one or more of the kimberlites to better estimate grade and provide a preliminary assessment of diamond value. The Kahuna kimberlite returned an encouraging initial diamond sample grade of 1.09 carats per tonne and appears to contain the highest tonnage potential of the four diamond bearing kimberlites discovered last summer. The diamond populations are dominated by clear white (colourless) stones with high value characteristics which indicate the potential for high average diamond values.

Drilling is now underway at the Notch kimberlite to test for overburden depths in advance of bulk sampling. Sample collection is dependent upon weather conditions and may continue into the summer months.

KD308 Kimberlite Discovery

Exploration drilling has intersected a new kimberlite, KD308. Two holes were drilled into the target. Both intersected kimberlite that is interpreted to represent a possible kimberlite blow with a true width of about 23 metres situated along a prominent structure that parallels the Kahuna trend, some 2.5 kilometres to the east.

Target KD-308, which was first drilled in 2006 but not explained due to drilling difficulties, is characterized by a roughly circular magnetic high anomaly approximately 100 meters in diameter that lies underneath a small lake and along a northeast trending dyke-like structure. The kimberlite has been described as moderately macrocrystic kimberlite with 20-25% olivine macrocrysts and other indicator minerals including ilmenite, blue green phlogopite, orange garnets, chrome diopside and chromite. Several eclogitic nodules were observed. Intervals contained country rock xenoliths and possible mantle nodule breccias. Representative samples have been sent for petrographic analysis by Mineral Services Canada. A total of 160kg of split core from both holes has also been shipped to the Saskatchewan Research Council for microdiamond recovery.

Below is a table with details of the KD308 drill intercepts:

End of Over- Kimberlite Total
Drill Dip Azimuth Hole burden Intercepts Kimberlite
Hole ID (degrees) (degrees) (m) (m) (m) (m)
07KD308-02 -64 015 113.0 9.8 20-73; 79.5-80.1, 55.2
07KD308-03 -45 285 80.0 7.4 26-62.2 36.2
06KD308-01(1) -50 025 161.0 6.8 147.3-147.4 0.1

(1) Hole drilled in 2006

The Churchill Diamond Project is comprised of mineral rights to more than 2 million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. To date Shear and its partners have discovered over 50 kimberlites on the Churchill and Churchill West projects including four kimberlite dykes that host significant diamonds. Shear and Stornoway currently own a 51.89% and a 35.61% interest respectively in the Churchill Diamond Project and have entered into an agreement to acquire the remaining 12.5% interest owned by BHP Billiton whereby upon closing, Shear and Stornoway will own a 58.14% and 41.86% interest, respectively in the project. The 2007 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.

On behalf of the Board


Pamela Strand, P. Geol., President

On behalf of the Board


Eira Thomas, 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 either of the Companies' expectations are in Company documents filed from time to time with the TSX or the TSX Venture Exchange and provincial securities regulators, most of which are available at The Companies disclaim any intention or obligation to revise or update such statements.

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