Shear Minerals Ltd.
TSX VENTURE : SRM

Shear Minerals Ltd.

November 17, 2010 09:29 ET

Shear Completes Chesterfield Inlet Project, Nunavut

Saz Kimberlite Float Confirmed Diamondiferous

EDMONTON, ALBERTA--(Marketwire - Nov. 17, 2010) - Shear Minerals Ltd. (TSX VENTURE:SRM) today announced the completion of the 2010 exploration program for the Chesterfield Inlet Diamond Project, Nunavut in partnership with Rio Tinto Exploration Canada Inc. ("RTCEI") and Stornoway Diamond Corporation ("Stornoway")(see news release May 3, 2010). 

The main 10-person field program was completed in July-August and followed up by additional work in late September. Crews focused on ground follow up 33 priority geophysical targets that were interpreted from the 2,346 line km ultra-high resolution airborne magnetic geophysical survey completed in the spring. Ground magnetic surveying, prospecting and sampling was completed on more than 35 targets, and resulted in the discovery of four new kimberlite float occurrences including the confirmed diamond-bearing SAZ kimberlite float. Ten geophysical targets were tested with 11 holes using a light-weight RC drill. All 10 targets were explained by a non-kimberlitic magnetic source.

"We are very encouraged by the discovery of four new kimberlite float occurrences as proof that ground prospecting and boots on the ground are the effective way to explore this project", says Pamela Strand, President and CEO. "A number of targets remain unexplained by ground prospecting, and we are encouraged by the confirmation of diamonds in the SAZ Float. We have additional work underway to determine the nature of the SAZ kimberlite float occurrences."

Details of the 2010 program included:

  • Discovery of four confirmed new kimberlite float occurrences including the SAZ kimberlite float Petrography and mineral chemistry will be completed to categorize diamond potential
  • Collection of 37.9 kg of kimberlite from the SAZ kimberlite float occurrence for diamond recovery
  • Collection of 24 target specific till samples
  • Intensive prospecting and structural interpretation over high priority geochemical, geophysical and structural areas
  • Lightweight drill testing of 10 targets with 11 holes
  • Selected ground magnetic surveys (11.4 km) to assist in drill hole targeting
  • ICP sample grids over two new float discoveries

SAZ Kimberlite Float

Three of the kimberlite float discoveries were clustered within a 600m area and are referred to as the SAZ kimberlite float (see news August 12, 2010). During 2010 a 37.9 kg sample of weathered kimberlite fragments collected from frost boils for testing with caustic dissolution with recovery of 17 diamonds as follows:

Kimberlite Sample Weight (kg) 0.106 mm Sieve 0.15mm Sieve 0.212mm Sieve 0.3mm Sieve Total Diamond Count
SAZ Float1,2 37.9 12 2 2 1 17

1 The largest diamond measured 0.6mm x 0.4mm x 0.2mm

2 Samples were submitted to Rio Tinto Exploration Canada Inc.'s Mineral Processing Laboratory in Thunder Bay, Ontario accredited by the ISO 9001:2008 Certified Quality Management System as a testing laboratory for diamond analysis using caustic fusion, diamond observation and classification.

About the Project

The Project comprises a group of 35 mineral claims (70,000 acres) located within and near the North Corridor of the larger Churchill Diamond Project. The Project area is located approximately 15 km north of the Josephine River Corridor. This area covers the North Corridor, an indicator mineral dispersion area based on till samples from 2003-2006 having high count probe-confirmed kimberlitic indicator minerals including pyrope garnet, eclogitic garnet, chrome diopside, ilmenite and chromite. 

Under the terms of the Option and Joint Venture Agreement, Shear and Stornoway have jointly granted RTECI the right and option to acquire, subject to all underlying royalties, up to a 70% interest in all mineral rights to the Project. RTECI has a First Option to acquire a 51% interest in the Project by incurring exploration expenditures of $100,000 before December 31, 2010 and an additional $1,900,000 in exploration expenditures before December 31, 2012. If the First Option is exercised, RTECI has an option to complete a Second Option whereby RTECI can earn an additional 19% interest in the Project by incurring an additional $4,500,000 in exploration expenditures before December 31, 2016. Shear will be the operator during the First Option.

The Chesterfield Inlet Diamond Project is owned approximately 62.78% by Shear and 37.22% by Stornoway. At the adjacent Churchill Diamond Project work is presently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of a system of significantly diamond-bearing, vertically-emplaced kimberlite dykes that have returned sample grades of up to 2.18 carats per tonne. The 2010 field program is under the supervision of Pamela Strand, P. Geol., a Qualified Person under NI 43-101, who has reviewed and approved the contents of this news release.

About Shear Minerals Ltd.

Shear is a Canadian-based exploration 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.

On behalf of the Board

SHEAR MINERALS LTD.

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 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 www.sedar.com. The Companies disclaim 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.

Contact Information