Peregrine Diamonds Ltd. PGDIF

RE: RE: 2012 Large Diameter Drilling

[Durkastan]

I was confused by this as well. My initial impression was that they meant that it would be over a year from now, but if they're shipping equipment up there now then perhaps they mean this coming winter? The thought of the logistics of drilling & bulk sampling in the middle of a Baffin Island winter makes me shudder, but I'm sure they know what they're doing.

If they do indeed mean this upcoming winter then I would definitely support that decision. With a less-than-stellar drill program this year, perhaps they are feeling the heat and want to try and prove the economics of the project as soon as possible. My impression prior to this announcement was that bulk sampling of any kimberlites wouldn't be until late 2012 at best.

The only problem is the money... to bulk sample 5-6 kimberlites surely means a cost in the tens of millions, and then there are the usual yearly exploration costs. We all know that CH-6 and CH-7 bulk results are going to make us basically wet ourselves and are worth the cost. Without any other near-term catalysts, though, it's going to take some creative financial voodoo to raise the cash without over-dilution to current shareholders. No one is going to feel this pressure more than the largest shareholder, Mr. Eric Friedland, which is surely a positive for everyone else. 

I believe that BHP will stay in at least until the bulk sampling is done, and will pony up their 51%. With any luck, managment will do another insider placement above market again for a portion of their total needs, but there's little doubt that a large financing is coming, and soon-ish; however, they'll probably wait until after CH-28 mini-bulk results as it's one of the few upcoming catalysts that can make a difference.

I'm waiting patiently for an opportunity to get back in. By waiting I risk missing the boat I guess, but it's too risky for my tastes right now. I'll wait for the smoke to clear over financing and then will hopefully get my chance. I really do want to see these guys succeed, as there are few mining stories out there as interesting as this one IMO.