Shore Gold updated the valuation of diamond parcels recovered from the Star and Orion South kimberlites. The price of the highest value stone, an 11.96-carat, type IIa diamond recovered from the Star kimberlite, increased to $18,000 per carat in July from $15,000 per carat in the initial February valuation.

Two high value stones were identified from the Orion South parcel. A 10.53-carat stone was valued at $7,900 per carat and a 4.26-carat diamond was valued at $4,900 per carat in July, compared with February valuations of $6,000 and $3,900 per carat respectively.

The parcel prices, which did not include the high value stones, experienced increases between 31 percent and 46 percent from the February valuation. Model prices ranging from $172 to $456 per carat have been determined for the diamond populations of the major kimberlite units that make up the Star and Orion South kimberlites.

Richard Wake Walker of WWW International Diamond Consultants, who participated in the valuations, said, "While rough diamond prices have risen consistently since the March 2009 low, following the world financial crisis, there has been a dramatic price increase of some 50 percent in the first six months of 2011.

''Rough prices have continued to rise into July and the De Beers July 2011 sight is reported to have the largest value on record. It would seem unlikely, however, that the same rate of increase can be maintained for the rest of this year, although prices have continued to rise throughout July," Walker said.

Shore Gold's senior vice president of exploration and development, George Read, added that continued significant increase in rough diamond prices will have a major positive effect on the economics of the Star and Orion South diamond project, especially since the feasibility study suggests diamonds greater than 100 carats will be recovered from future production.