By Nigel Maxwell

Shore Gold signs deal with SaskPower

Apr 1, 2011 | 6:32 AM

Another hurdle has been cleared towards the opening of Saskatchewan's first diamond mine.

Shore Gold has signed an agreement with SaskPower that would see the construction of a 230 kilovolt power line that would stretch 21 kilometres.

According to SaskPower, the project is worth roughly $10 million dollars.

“We hope to have the project completed by September, 2013 and have customers online by the end of September,” said James Parker with Sask Power.

The agreement ensures SaskPower will have the generation capacity required for the Project's anticipated power requirements.

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“Our demand is growing at a much rate higher than historically — around 2.4 per cent — historically we have seen it at 1.8 per cent,” Parker said.

Parker said in the past several weeks there have been a number of open houses across the province for transmission projects and SaskPower is doing its part to keep up with the growing demand.

Before they can begin construction SaskPower needs several levels of approvals, including examining environmental impact, they will also work on defining a preferred route.

“We have fair amount of work to do before we can even considering starting construction,” Parker said.

Pending final government approval, Shore Gold still anticipates diamond production to start in 2016.

news@panow.com