Diamonds found near IqaluitMore positive news this fall for the diamond industry up north.
From CBC:
Diamonds found at Peregrine site near Iqaluit
Peregrine Diamonds Ltd. reported early but promising results Mondayfrom its summer exploration work near Iqaluit, finding diamonds in oneof 16 kimberlite samples it collected.
Thousands of tiny "microdiamonds" and a few larger ones were foundin the kimberlite — a type of volcanic rock that erupted below theEarth's surface and, in some cases, brings up diamonds — fromPeregrine's Chidliak property, located 150 kilometres northeast of theNunavut capital on Baffin Island.
"They're similar to the early samples at the Lac de Gras district inthe Northwest Territories, where the Diavik and Ekati mines werefound," president Brooke Clements said Monday.
The largest diamond the Vancouver-based found in the sample was a0.62-carat white, transparent aggregate, the company said in a newsrelease.
Stock market response
The news triggered aninstant response on the Toronto Stock Exchange, with Peregrine's stockrising from Friday's closing price of 89 cents to $1.85 at the end oftrade Monday.
As of 10:30 a.m. ET Tuesday, the company's stock was around $2.
"Our price about doubled and we had quite a few million shares traded," Clements said.
The company is awaiting results from 11 other kimberlite samples itcollected this summer. Clements said they will likely conduct a lotmore exploratory drilling next summer.
And even with the optimistic comparisons to the Diavik and Ekatimines, both of which are currently in operation, Clements cautionedthat a mine on Baffin Island is a long way away.
'It does have the potential'
It took the Diavik mine nine years to open after diamonds were first discovered there, he said.
"It does have the potential to get there," Clements said. "There's alot of work that has to be done to get from here to there, but we arecertainly getting results that justify doing a lot of work to try toget there."
The prospect of a diamond mine opening on Baffin Island would stillboost the local economy, said Chris West, president of the BaffinRegional Chamber of Commerce.
"Once development falls into place, I'm sure there will be lots of opportunities for local companies," West said.