Shear Minerals Ltd.
TSX VENTURE : SRM

Shear Minerals Ltd.

November 14, 2007 08:30 ET

Shear Recovers 5.43 Carat Diamond From Churchill's Kahuna Kimberlite

EDMONTON, ALBERTA--(Marketwire - Nov. 14, 2007) - Shear Minerals Ltd. (TSX VENTURE:SRM) and Stornoway Diamond Corporation (TSX:SWY) today announced the recovery of a 5.43 carat diamond from the second phase of processing of the 400-tonne bulk sample extracted earlier this year from the Kahuna kimberlite dyke on the Churchill Diamond Project, Nunavut. The diamond is a broken fragment of a larger stone which is estimated, from the recovery of eight complementary broken diamonds in the same sample, to have been up to 14 carats in size. Results from the second phase of bulk sample processing at Kahuna are preliminary and diamond recovery is still underway.

"The discovery of these large diamond fragments proves the potential for the Kahuna kimberlite dyke to host larger diamonds," says Shear President and CEO Pamela Strand. "We continue to be encouraged by the results of the Kahuna bulk sample. The presence of coarser diamonds will be an important driver of overall diamond value."

Preliminary observation describes the five carat stone as a white "clivage" stone that has broken on all sides along pre-existing fracture planes marked by inclusions. Other diamond fragments recovered weigh 2.05, 1.54, 1.44, 1.33, and 1.10 carats. Work will be undertaken to try and reconstruct the diamond from fragments to determine the potential size of the original diamond as well as assess potential breakage causes.

The current bulk sampling at Kahuna is aimed at establishing a preliminary grade and providing a preliminary assessment of diamond value. Processing of the remaining 270 tonnes of kimberlite from this year's 400-tonne mini-bulk sample of Kahuna has been completed and final diamond recovery is currently underway with results expected within weeks.

Today's diamond results are from the continuing processing of three surface samples collected by trenching along the strike length of the Kahuna kimberlite dyke in March and April of 2007. On September 19, 2007 a sample grade of 0.88 carats per tonne (cpt) was released based on diamonds recovered on a 0.85mm sieve size or larger (using a square mesh) from a 106-tonne sample. The Kahuna kimberlite is a 2.8m to 4m wide vertical kimberlite dyke that trends for more than 5.5km based on geophysical interpretation. Other results from the 2007 program including microdiamond analyses from drilling and prospecting discoveries will be released when available.

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
    (780) 989-0322 (FAX)
    Website: www.shearminerals.com
    or
    Stornoway Diamond Corporation
    Eira Thomas
    Chief Executive Officer
    (604) 331-2271 or Toll Free: 1-877-331-2232
    (604) 668-8366 (FAX)
    Website: www.stornowaydiamonds.com