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RAPAPORT... Shore Gold Inc. recorded a loss of $1.6 million or 1 cent per share for the second quarter that ended on June 30. The loss was narrowed from $2.2 million one year ago, but both accounts were due to operating costs and exploration and evaluation expenditures. For the first half, Shore Gold reduced its loss by half year on year to $3.1 million, as lower exploration and evaluation expenditures were incurred. During the second quarter, Shore Gold's main focus was to prepare its final Environmental Impact Statement (EIS) for the Star-Orion South diamond project in Canada and continuing to seek development capital. The feasibility study from July 2011, included a cash flow model, base case net present value of $2.1 billion, using a 7 percent discount rate, for an internal rate of return of 16 percent before taxes and royalties. A revised EIS was submitted to provincial and federal regulators in August 2012, responses and requests for more information were returned to Shore Gold in October and the company prepared and submitted responses in January and again in April. Many of the comments were addressed by Shore's personnel, using existing information, but a limited number of comments required further discussion with and additional work by consultants. The revised EIS will be released for public comment by the Ministry when all comments and information requests have been resolved. Rough diamond prices have increased since the end of the third quarter of 2012, with overall rough diamond prices at the end of 2012 increasing slightly from rough diamond prices at the end of 2011. Current rough prices are estimated to be slightly above the price used in the feasibility study, Shore Gold commented. Shore Gold currently holds approximately $5.3 million in cash and cash equivalents and short-term investments, excluding $1.8 million in restricted cash.
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