A mineral exploration company says it might be feasible to develop a diamond mine in Saskatchewan.

Shore Gold has been drilling holes around Prince Albert, Sask., for several years looking for commercially viable deposits of kimberlite, the ore which yields diamonds.

The company issued a news release Thursday saying it has a feasibility study which shows, if diamond prices are strong, its holding could be developed into a commercially viable mining operation.

"Shore is very pleased with the positive results of the feasibility study," Kenneth MacNeill, the president of Shore Gold, said in a news release. "The robust economics confirm that a world class diamond mine is feasible in central Saskatchewan."

According to the release, the study's positive outlook is bolstered by the fact that current rough diamond prices are about 30 to 35 percent higher than the prices referenced in the company's economic models.

"The feasibility study takes a conservative approach to the economic model which still produces strong positive values," the release said.

The company said it would take five years to get to full production of a mining and processing operation that would last about 20 years.

It said its economic projections are based on construction of a mine starting in late 2012.

"The economic analysis assumes that diamond prices will increase at a rate faster than costs," the company noted.