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Peregrine Diamonds Ltd. PGDIF

"Peregrine Diamonds Ltd is a diamond exploration and development company with interests in diamond exploration properties located at Nunavut and the Northwest Territories in Canada and The Republic of Botswana."


GREY:PGDIF - Post by User

Bullboard Posts
Comment by Durkastanon Dec 06, 2010 5:09pm
363 Views
Post# 17808347

RE: Any thoughts?

RE: Any thoughts?The catalysts are:

1) Results from any of the remaining 26 kimberlites showing extraordinary promise (big stones, and/or a distribution like CH-6, CH-7, or CH-44. I'm personally guessing that at least 20 of the remaining 26 will not show much promise, and 1 of the 26 (CH-17) will be too small to make any inferences. But if even a couple of them show coarse diamond distributions like CH-44 or better, then we are well on the path to achieving the scale necessary for a mine - this is definitely cause for a higher average share price.

2) Results from the other samples outstanding from kimberlites discovered pre-2010 showing extraordinary promise. Remember, in the September 16 news release, PGD stated that they took extra samples from CH-1, CH-7, CH-9,  CH-12, and CH-16. CH-7 results would in all likelihood not move the market at this point; however, results from the other phases of CH-1 that were NOT bulk sampled in late 2009 are being tested, and I suspect that the results might impress.

Aside from tangible diamond results, there are a couple of other catalysts for a short-term price pop, namely:

3) Eric appearing on BNN touting the results - so far without fail, this man creates a rally for PGD every time he appears on TV.

4) Analyst coverage from new houses. This is fairly unlikely at this stage. I suspect that we may start to garner some coverage in late 2011 and beyond, but for now this is just too speculative for the big players to stick their necks out. I doubt that Kaiser can move this market on his own at this point, regardless of how bullish his report on CH-6 is.


I did end up selling a little over half of my position today at 3 bucks when I realized (guessed?) that there wasn't going to be a big CH-6 - inspired rally. My position was quite a bit larger than what I was comfortable with, so it wasn't a hard decision to make. However, I'll be holding the remainder in case any of the above events take place. It could take until late January before we get every single last result in. There's no way I'm going to be left with no shares for any news event.
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