Peregrine Diamonds Ltd. PGDIF

RE:RE:PGD Drill NR Sept 21st 2017

[ekim]

The argument between inferred resource going down to 380 metres or 500 metres or somewhere inbetween is a completely valid one and one we will find out in the 4th quarter.

The only point I want to make on this is that the current inferred resource above 260metres from a volume/tonnage point of view is actually in the indicated category based on the density of drilling available. There is a table in the last technical report that says exactly that.
Why it is not an indicated resource? - They need LDD RC drilling to confirm macro grade throughout the body..not just a trench at surface. Another round of carats for the valuation model may also be needed.

That being said...for a revised PEA and an updated inferred resource..the drilling density between 260 metres and 500 metres does not have to equate to the work done in the top 260 metres.

I think the opposite of what you suggest is also a possibility.
The width of the orebody at CH-6 does not work well with strip ratios. It quickly is a losing battle...hence they didnt' even include all inferred carats in the last PEA.
We may see them actually shallow up the pit and expand the underground above where the original pit bottom in the PEA was. The pits at Renard are quite shallow.

I'm going to suspect that they will at least have an inferred shape all the way down to 500 metres...especially with those two drillholes that go right through the kimberlite to 530 metres below surface...but they may have a cone or partial cone of TFFE surrounding part of the kimberlite pipe at depths between 380 metres to 500 metres.

LONG...PGD

EKIM