Shear Minerals Ltd.
TSX VENTURE : SRM

Shear Minerals Ltd.

September 18, 2007 16:49 ET

Shear Confirms High Commercial Diamond Content at Churchill's Kahuna Kimberlite

93.54 carats extracted from initial 106-tonne sample

EDMONTON, ALBERTA--(Marketwire - Sept. 18, 2007) - Shear Minerals Ltd. (TSX VENTURE:SRM) and Stornoway Diamond Corporation (TSX:SWY) today announced partial results from the first phase of processing of the 400-tonne bulk sample extracted earlier this year from the Kahuna kimberlite dyke on the Churchill Diamond Project, Nunavut. From an initial 106.6 dry tonnes, 3,239 diamonds greater than 0.85mm were recovered yielding 93.54 carats with the three largest diamonds weighing 1.39, 1.19 and 0.73 carats. Preliminary observation describes the majority of the diamonds as white and colorless with a good population of octahedrons.

"These initial results clearly demonstrate the potential for the Kahuna kimberlite dyke," says Shear President and CEO Pamela Strand. "While these numbers represent only a glimpse into partial results of the ongoing processing, we are encouraged by the diamond content and diamond quality."

Ms. Strand said the current bulk sampling at Kahuna is aimed at establishing a preliminary grade and providing a preliminary assessment of diamond value. "Once all 400 tonnes of kimberlite material has been processed the complete parcel of recovered diamonds will proceed to an independent valuation exercise," says Ms. Strand.

Today's diamond results are from the first and southernmost of three surface samples collected by trenching along the strike length of the Kahuna kimberlite dyke in March and April of 2007. The sample grade of 0.88 carats per tonne (cpt) is based on diamonds recovered on a 0.85mm sieve size or larger (using a square mesh). The Kahuna kimberlite is a 3.5m to 4m wide vertical kimberlite dyke that trends for more than 5.5km based on geophysical interpretation.



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Sample
Grade Weight of Number
Sample Carats Diamonds of
Weight per Recovered stones 0.85 1.18 1.70 2.36 3.35
Sample Dry tonne (carats) +0.85 mm mm mm mm mm
Number (tonnes) (+0.85mm) (+0.85mm) mm Sieve Sieve Sieve Sieve Sieve
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Kahuna -
Sample 2 106.57 0.88 93.54 3,239 1,609 1,374 203 40 13
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Sample results are based on the recovery of diamonds by dense media separation (DMS) at Kennecott Canada Exploration Inc.'s independent processing plant in Thunder Bay, ON, using a 1mm square mesh bottom cut off. No crushing of Kahuna Sample 2 was required as the kimberlite was pervasively clay altered. A 950.7kg heavy mineral concentrate was generated and then passed through an x-ray sorter and picked for diamonds. Diamonds were also recovered during an audit of the magnetic fractions and x-ray rejects resulting in the treatment of these fractions by caustic fusion analysis.

Preliminary observation describes the majority of the diamonds as clear, colorless to white with a good population of octahedrons. For photographs of the diamonds please visit www.shearminerals.com. Detailed descriptions and classification of the diamonds will be conducted by Mineral Services Canada in the coming weeks in order to fully categorize the diamond populations and to identify any potential diamond breakage. A full audit will be conducted on tailings from each of the three subsamples to assess plant performance and potential under-recovery of diamonds.

Crushing of the remaining 270 tonnes of kimberlite from this year's 400-tonne mini-bulk sample of Kahuna has been completed and heavy mineral separation is currently underway at Kennecott's DMS facility with results expected within the next month.

The Churchill Diamond Project is owned 58.14% by Shear and 41.86% by Stornoway and is comprised of the diamond rights to more than two million acres located near the communities of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. Work is presently focused on continued exploration of new promising indicator mineral trains and geophysical anomalies as well as the evaluation of four significantly diamond-bearing, vertically-emplaced kimberlite dykes (up to 4m in width) that have returned sample grades of up to 2.18 carats per tonne. The 2007 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.

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

  • Shear Minerals Ltd.
    Pamela Strand, P. Geol.
    President
    (780) 435-0045 or Toll Free: 1-866-298-9695
    Website: www.shearminerals.com
    or
    Stornoway Diamond Corporation
    Eira Thomas
    President
    (604) 331-2271 or Toll Free: 1-888-338-2200
    Website: www.stornowaydiamonds.com