Shore GOLD Inc. Announces First Quarter Results
NEWS RELEASE May 3, 2017
Stock Symbol: SGF: TSX Saskatoon, Saskatchewan
SHORE GOLD INC. ANNOUNCES FIRST QUARTER RESULTS
Shore Gold Inc. (“Shore” or the “Company”) reports that the unaudited results of Shore’s
operations for the quarter ended March 31, 2017 will be filed today on SEDAR and may be
viewed at www.sedar.com once posted. A summary of key financial and operating results for the
quarter is as follows:
Overview
The Company’s Star – Orion South Diamond Project (“Project”) is situated in the Fort à la Corne
kimberlite field in central Saskatchewan. The Project includes the 100 percent Shore owned Star
Diamond Project, as well as Star West and the Orion South Kimberlite, which fall within the
adjacent Fort à la Corne Joint Venture (“FALC -JV”). Shore has a 69 percent interest in the
FALC-JV and Newmont Canada FN Holdings ULC (“Newmont”) has a 31 percent interest.
Shore recently announced that it has successfully completed significant aspects of test work
towards an updated feasibility stud y on the Project (See SGF News Release dated March 6,
2017). The work completed in recent months includes: X -ray Transmission (“XRT”) recovery of
diamonds from Star pyroclastic kimberlite, ore processing data review, diamond parcel
characterization, kimberlite particle size analysis and overburden removal investigations. These
programs investigate the use of new technology for the efficient excavation of the open pit and
improvements to the flow -sheet of the diamond processing plant, while simultaneously re ducing
pre-production capital costs and the time to initial diamond production.
Results
For the quarter ended March 31, 2017, the Company recorded a net loss of $0.9 million or $0.00
per share compared to a net loss of $1. 4 million or $0.01 per share for the same period in 2016 .
The losses during these quarters were due to operating costs and exploration and evaluation
expenditures incurred by the Company exceeding interest income earned on cash and cash
equivalents and short -term investments. Losses during the three months ended March 31, 201 7
were lower than the same perio d in the previous year primarily due to higher expenditures that
were incurred in the quarter ended March 31, 2016 relating to the 2016 drilling program.
Exploration and evaluation expenditures incurred during the quarter ended March 31, 2017 w ere
primarily related to work relating to geotechnical investigations and test work for the Project.
Selected financial highlights include:
Condensed Consolidated Statements of Financial Position
As at
March 31,
2017
As at
December 31,
2016
Current assets $ 2.3 M $ 3.2 M
Capital and other assets 1.5 M 1.5 M
Current liabilities 0.2 M 0.3 M
Premium on flow-through shares and long-term liabilities 0.8 M 0.8 M
Shareholders’ equity 2.9 M 3.6 M
Consolidated Statements of Loss and Comprehensive Loss
For the
Quarter Ended
March 31,
2017
For the
Quarter Ended
March 31,
2016
Interest and other income $ 0.0 M $ 0.0 M
Expenses 0.9 M 1.6 M
Flow-through premium recognized in income 0.0 M 0.2 M
Net and comprehensive loss for the period (0.9) M (1.4) M
Net loss per share for the period (basic and diluted) (0.00) (0.01)
Condensed Consolidated Statements of Cash Flows
For the
Quarter Ended
March 31,
2017
For the
Quarter Ended
March 31,
2016
Cash flows from operating activities $ (0.9) M $ (1.4) M
Cash flows from investing and financing activities 0.0 M 0.0 M
Net decrease in cash (0.9) M (1.4) M
Cash – beginning of period 2.8 M 4.0 M
Cash – end of period 1.9 M 2.6 M
Outlook
The 2016 core drilling programs were required to further expand the internal stratigraphy of the
Orion South and Star Kimberlites extending and in- filling geological continuity from the
successful programs of 2015. The Company intends to update the previous Feasibility Study with
a revised mine plan, where new technology is applied to more eff iciently remove the sand and
clay of the overburden, in addition to the application of new technology in the processing plant.
Preliminary calculations suggest that such an updated feasibility study can positively change the
economic model for the Project by increasing the Mineral Reserve estimate and reducing the pre-
production capital costs and schedule to diamond production.
In addition, the Company is proceeding with the environmental assessment process and is
continuing to seek opportunities for development capital through participation in the Project by a
third party or a syndicate of investors.
As of May 3, 2017, the Company had approximately $2.1 million in cash and cash equivalents
and short -term investments (excluding $0.8 million in restric ted cash). A portion of the
Company’s cash and cash equivalents and short-term investments will be used to advance certain
aspects of the Project, including work required for an updated feasibility study, the environmental
assessment process, as well as for general corporate matters.
Caution Regarding Forward-looking Statements
This news release c ontains forward-looking statements within the meaning of certain securities laws, including the
"safe harbour" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform
Act of 1995. The words "may," "could," " should," "would," "suspect," "outlook," "believe," "plan," "anticipate,"
"estimate," "expect," "intend," and words and expressions of similar import are intended to identify forward-looking
statements, and, in particular, statements regarding Shore's futur e operations, future exploration and development
activities or other development plans contain forward-looking statements. Forward -looking statements in this news
release include, but are not limited to, statements related to the Feasibility Study; stateme nts relating to mineral
resources and/or reserves; statements related to the approval of the development of the Star - Orion South Diamond
Project; statements relating to future development of the Star - Orion South Diamond Project and associated timelines ;
the environmental assessment and permitting process; the Company's intention to seek developmental capital though
participation by a third party or syndicate of investors; Shore's objectives for the ensuing year, the optimization of the
feasibility study, anticipated capital and operating cost savings and the anticipated positive change in the economic
model for the Project; the aim of Shore to undertake additional studies and the potential updating of the f easibility
study.
These forward-looking statements are based on Shore's current beliefs as well as assumptions made by and information
currently available to it and involve inherent risks and uncertainties, both general and specific. Risks exist that
forward-looking statements will not be achieved du e to a number of factors including, but not limited to, developments
in world diamond markets, changes in diamond valuations, risks relating to fluctuations in the Canadian dollar and
other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration
results and changing budget priorities of Shore or its contractual partners, the effects of competition in the markets in
which Shore operates, the impact of changes in the laws and regulations regulating mining e xploration and
development, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the
additional risks described in Shore's most recently filed Annual Information Form, annual and interim MD&A, news
releases and t echnical reports. Shore's anticipation of and success in managing the foregoing risks could cause actual
results to differ materially from what is anticipated in such forward-looking statements.
Although management considers the assumptions contained in forward -looking statements to be reasonable based on
information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect
to Shore, investors and others should not place undue reliance on these statements a nd should carefully consider the
foregoing factors and other uncertainties and potential events. Unless required by applicable securities law, Shore does
not undertake to update any forward-looking statement that may be made.
For further information: [email protected] or (306) 664-2202
www.shoregold.com