Shore submits revised EIS for Star-Orion

In August, Shore Gold (SGF-T) submitted a revised environmental impact statement (EIS) for its Star-Orion project, in Saskatchewan, to provincial and federal regulators.

The 10,500-page document is based on the July 2011 feasibility study for Star-Orion and responds to hundreds of comments and information requests from federal and provincial authorities, as well as aboriginal groups, submitted in response to the original draft EIS, which was based on a prefeasibility study for the project.

At presstime, Shore had received comments 129 comments in total from the federal and provincial levels on the revised document. Saskatchewan’s Ministry of Environment will soon release the EIS for public comment.

As of Aug. 10, Shore had $11 million in working capital, which the company says is sufficient to see Star-Orion through permitting while it seeks financing for the project, projected to cost $1.9 billion to build.

The 2011 feasibility study for Star-Orion outlined probable reserves of 279 million tonnes grading 12.3 carats per hundred tonnes. Over a 20-year mine life, the study showed that an open-pit operation would have a pretax net present value of $2.1 billion ($1.3 billion after taxes and royalties) and an internal rate of return of 16% (14% after taxes and royalties).

Shore owns 100% of the Star kimberlite and 67% of the Orion South kimberlite, which is part of the Fort à la Corne joint venture with Newmont Mining (NMC-T, NEM-N).

Earlier this year, Shore laid off all but 15 staff in order to conserve cash while moving ahead with permitting.

At presstime, Shore Gold shares traded at 24¢ in a 52-week range of 17-50¢. The company has 224.7 million shares outstanding.