Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:Phase 2

[schocor]

Ch1 and Ch44 are larger potential pits with considerably more kimberlite than Ch6 and Ch7. Lower grade - likely - but accretive to NPV based on the early results. As it sits now - with the PEA we have - we are looking at a relatively small mill with a corresponding throughput and a relatively short mine life. The PEA is positive, but a lower $/carat and thus a higher NPV could be achieved is they can up the throughput. I do not think they will go ahead with mining/construction/design etc until they poke around Ch1 and Ch44 further to see if that is part of the mining plan and plant through put design. I am sure these two pits will be part of the mining plan. This will probably take a few years AT BEST. There was always fuss over Ch1 (original fuss) and CH44 (big fuss). These are important pipes in the underexplored kimberlite swarm that underlies Childiak. Ekati and Diavik are world class mines. These mines has an annual throughput of 3-4M tonnes of kimberlite and a mine life of 12-25 years. AS a benchmark a good target before we design anything production wise would be to get about 30-50M tonnes quality economic kimberlite into the mine plan. Speculating - we would have a multi billion dollar NPV if we can get there based on the indicative grades shown thus far. That if The company has stated that they are looking for a partner to foot the bill/share the expense for future exploration/development.