Peregrine Diamonds Ltd. PGDIF

Strip Ratios - PEA

[ekim]

We are approaching PEA and one of the key topics will be the strip ratio that is finalized in the study.

This is actually where size does matter and the small footprint of CH6 will hit hurtself in the fact that it does have to mine more waste material for each metre it goes deeper.
CH7 is a bit better (larger), but it doesn't have the margin to sustain it as well.

Here is a post with related information -- Strip Ratio Post

The biggest quesiton will be...when does it make sense to go underground. You can make the deepest pit possible..but if you have to move a small planet of waste to do it...it doesn't make a lot of sense.

LONG...PGD

EKIM

[madmann]

Hey Mike, With strip ratios being so high on vertical pipes, DO27 sounds like a no no brainer being 9 hectares+ no? When is pgd going to spin off and/or sell D027? With 7+ carat diamonds and 4.3 carat fancy yellows, surely D027 should be high priority? M

[ekim]

You might be on to something. The FS would have looked at a big open pit. What if they did a small pit with some overburden removal, but very little, if any, pit waste. They would haul it to the nearest mill or possible have to pay to scrub it down to a concentrate of 10% and then transport that. Operating cost would be lower because of less waste, but scales of economy dictate more expensive