More Resources

Diamond play's progression taken in stride by Shore.

SaskBusiness • May-June, 2007 •

Ken MacNeill conducts his business with the confidence and authority of a man who is a couple of chapters ahead of the rest of the book club. Or, more likely, of a man who wrote the book.

[ILLUSTRATION OMITTED]

As a second-generation miner, the President and CEO of Shore Gold may very well have been born into his current position. Very little surprises him about Shore's progression in the diamond fields east of Prince Albert, yet there is undeniable enthusiasm within his calmness.

"This is a very exciting time for Saskatchewan," MacNeill says. "The infrastructure is here and it allows for rapid growth. Opportunity abounds in the mining sector."

Born in Prince Albert and raised in Saskatchewan, MacNeill is clearly proud to be part of a mining industry that is bringing people back to their home province and bringing in new people from all over the world. The quality of life in Saskatchewan and the richness of its resources are top drawing cards for people such as Adam Buchanan, Shore's new Manager, Investor and Community Relations.

Buchanan says he probably would have gone anywhere in the world for the chance to work with Shore and be a part of a company with such tremendous potential. "I've lived my whole life in Vancouver and to be able to come to a place with a standard of living so high and a cost of living so low is fantastic."

MacNeill's love for the province only grows as Shore's diamond play expands. Through continued consultations and ongoing discussions with the local municipalities, cities, towns and First Nations, and after dealing with suppliers, consultants and contractors in the province, his appreciation for their professional and positive attitude is unbounded.

"We look first to the local community and they've been phenomenal in their support," MacNeill says, adding the University of Saskatchewan continues to supply the industry with highly trained graduates. Shore also imports diamond experts from other parts of the world, bringing the necessary expertise and would welcome the chance to work with locally-based final-stage diamond processors.

Touting one of the largest mineral exploration budgets in the world, Shore continues advanced stage exploration in Saskatchewan. They've gone from three-inch drilling to large diameter drilling (1.2 m) to underground bulk sampling, Buchanan explains, in an effort to get an accurate idea of the deposit's grade.

"These kimberlite bodies are extremely large," he says of both the Star and Joint Venture kimberlites. The approximately 100 m of overburden on top of the kimberlite may seem daunting, but the location is such that it can be accessed year-round. Also, the overburden was 'absolutely critical' in protecting the deposit.

"It was covered in sediment, basically, for millions of years and very little of the weathering process took place," Buchanan details.

"The diamonds have not been spread across hundreds of miles by the glaciers. That's good for us."

Also good for Shore has been the presence of diamonds larger than one carat. That's where a significant portion of the diamond value resides, Buchanan says, and Shore has been achieving average diamond values at about $135 U.S. per carat in the Star project, compared to the world average of $63 U.S. per carat for kimberlite mines. They've also found yellow diamonds, proof that coloured diamonds--the ones that often fetch extremely high prices--do exist in the field.

"Rising wealth around the world has given people in places such as China, India, and other countries with growing economies the power to buy diamonds," Buchanan says, suggesting that diamond demand may overtake supply in the coming years. "In terms of return on investment, diamonds probably have been one of the best mineral investments over the last 50 years."

Canadian diamond production has grown rapidly, to the point where Canada now sits at Number 3 in terms of diamond value production. We're becoming a household name on the world diamond market, MacNeill says, and the outlook is very positive.

In typical MacNeill fashion, he says Shore was 'very pleased with how the Joint Venture evolved over the past year'. To go along with their Star project, Shore Gold successfully secured the dominant position in the Joint Venture when 'other companies prioritized their projects in Canada'.

"Newmont Mining then came on board with an engineering capability that is unsurpassed," MacNeill outlines. "They are a large experienced mining company that has the ability to develop very large open pit mines at a low average cost."

With about 300 construction contractors and employees, Shore has grown rapidly and the learning curve in diamond exploration has been steep. MacNeill has been smart enough to surround himself with highly qualified people and he's thankful for the industry's support.

"The Saskatchewan Mining Association is a very good organization and they've done an exceptional job supporting the industry," MacNeill comments.

"It's a committed group and I know (new Executive Director) Pam Schwann will be a strong voice for the industry."

Shore itself is still collecting the information necessary for what's known as a National Instrument or NI43-101 compliant mineral resource for the Star Diamond Project, and advanced exploration is in progress on the Joint Venture. MacNeill expects most of the heavy lifting could be done by the end of the year.

"We're working with a diamond bearing kimberlite field that is second to none," MacNeill says, concluding:

"It's exciting to be working with a project of this scale, made even more special because it's such a pleasure to live here in Saskatchewan."


COPYRIGHT 2007 Sunrise Publishing Ltd. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2007, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.


Browse by Journal Name:
Today on Entrepreneur
Related Video

e-Business & Technology
Franchise News
Business Book Sampler
Starting a Business
Sales & Marketing
Growing a Business
E-mail*:
Zip Code*: