Shear Minerals Ltd.

Shear Minerals Ltd.

June 28, 2005 09:41 ET

Shear Drills Seven New Kimberlites at Churchill Diamond Project

EDMONTON, ALBERTA--(CCNMatthews - June 28, 2005) -

2005 program to test up to 50 targets

Shear Minerals Ltd. (TSX VENTURE:SRM), Stornoway Diamond Corporation, and BHP Billiton Diamonds Inc. announced today that seven new kimberlites (eight in total for 2005) have been discovered on the Churchill Diamond Project, Nunavut in 2005. This brings the total number of confirmed kimberlite occurrences on the Project to 30.

"These new kimberlite discoveries highlight the continued extent of the kimberlite cluster on the Property," said Pamela Strand, President and CEO of Shear. "This year's targets have been chosen due to their location up ice of relatively constrained, discrete mineral trains containing high-interest indicator mineral chemistry that does not appear to correlate with the kimberlites drilled to date on the Churchill Project. Shear and our partners are committed to drilling until the source of the outstanding diamond indicator mineral chemistry on the property has been identified."

Target KD-428NW is characterized by an elongated magnetic high anomaly with coincident EM approximately 80m by 180m; this vertical drill hole was drilled to a depth of 125m and intersected 116m of kimberlite terminating in kimberlite, the first kimberlite drilled in 2005 (announced in the press release dated May 5, 2005).

Target KD-5135 drilled multiple intersections of kimberlite totaling 8.3m within iron formation host rocks. This target is a circular magnetic high 75m in diameter.

Target KD-900 is a 80m by 200m magnetic low anomaly. This vertical hole intersected 96.7 m of kimberlite from 6.0m to 102.7m.

Target KD-5108 was determined to be an approximately 1m wide kimberlite dyke.

Target KD217 was redrilled as a result of losing the drill hole in 2004 due to bad ground after recovering only 3.3m of kimberlite. Due to its location a second vertical hole was drilled and recovered 43.7m of kimberlite from 26m to 69.7m.

Target KD-5821 was a magnetic low anomaly tested by a vertical hole, intersecting 75.3m of kimberlite from 11m to 86.3m.

Target KD-209 was a magnetic low anomaly tested by a vertical hole, intersecting 4.1m of kimberlite from 79.2m to 83.3m. A second inclined hole was repositioned to test the center of the target, and intersected 32.5m of kimberlite from 32.0m to 64.5m.

Target KD-5774 was a magnetic high anomaly tested by an inclined hole intersecting approximately 56m of kimberlite between 80.2m and 152.1m.

Target KD-244 is an 80m by 200m magnetic low anomaly currently being tested by an inclined hole through the center of the strongest magnetic response. Kimberlite was intersected at a depth of 70m, and the hole remains in kimberlite at 77m.

Final representative samples are being collected from each of the kimberlites and will be submitted to the Saskatchewan Research Council (SRC), an independent laboratory, for micro-diamond analysis. Samples will also be collected for petrographic and indicator mineral analysis to fully asses the diamond potential of these discoveries.

Twenty four drill holes and 90 ground geophysical grids have been completed to date in 2005. The goal of the 2005 drill program is test up to 50 high priority targets at the source areas to the high diamond potential mineral chemistry. The drilling has moved from lake based targets to land based targets, and is planned to continue through the summer.

The Churchill Diamond Project is comprised of mineral rights to more than 7 million acres located near the community of Rankin Inlet and Chesterfield Inlet in the Kivalliq region of Nunavut. The project is owned by joint venture partners Shear, which has a 51% interest and is the operator, Stornoway (35%) and BHP Billiton (14%). Since 2003, Shear and its partners have discovered 32 kimberlites over an area spanning 60km on the Churchill and Churchill West projects. The 2005 field program is under the supervision of Jennifer Burgess, P. Geol., a Qualified Person under NI 43-101.

This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.

On behalf of the Board
/s/ "Pamela Strand"
Pamela Strand, P. Geol.

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
    (780) 435-0045 or 1-866-298-9695
    (780) 989-0322 (FAX)