Diamond explorer Shore Gold Inc., of Canada, reported second quarter and first-half highlights for 2006 ending June 30. The company reported profits of $600,000,  and working capital of $235.4 million for the second quarter.

The Fidelity Group of Funds acquired a 12.5 percent interest in the company during the second quarter. 

Shore Gold and partners at Fort a la Corne voted in a $43.2 million budget program for the 2006 fiscal year on the  property, of which Shore Gold will finance approximately $20 million. This consensus was reached despite De Beers having launched an action to void the voting agreement among Shore Gold,  Kensington Resources Ltd., Cameco Corp., and UEM Inc.

By the end of June, two of the expected five core drilling rigs had begun drilling and the project is expected to complete by late December 2006.

Shore Gold's  net income of $600,000 was up from a net loss of $200,000, in second quarter of 2005. The increase  is predominately related to increased interest revenue for the second quarter of 2006. The increase in interest revenue was somewhat moderated, as expenses continue to increase as the company grows.

For the six-month period ending June 30, 2006, Shore Gold recorded net income of $1 million, compared with a net loss of $1.8 million in 2005. The $2.8 million positive change  is predominately from increased interest revenue.