Peregrine Diamonds Ltd. PGDIF

RE: RE: RE: something up?

[Durkastan]

Overall, I thought that the news was pretty weak and summed up my suspicions about how well this year's exploration was going. The lack of news pointed to a weak discovery season, and indeed none of the new kimberlites appear to be in the same leagues as kimberlites from years past.

A lot is going to rest on the mini bulk sample from CH-28 and results from CH-31, as they are both going to have to confirm and/or improve the potential of the kimberlites. It is likely that CH-6 and CH-7 alone are not large enough/sufficiently economic to justify mine construction, so adding those extra sites will be crucial. CH-44 also looks very promising.

A massive bulk sampling program for the 5 (or 6 if you include CH-45, which doesn't really look that great to my admittedly unscientific eyes) is certainly going to mean a hefty equity raise sometime in the near future. Unfortunately, it doesn't look like it's going to be at a price that will be palatable to current shareholders, unless the CH-28 mini-bulk blows us away and management adeptly takes advantage of the ensuing pop.

My outlook is pretty negative on this stock until the future equity raise gets finalized. I still believe in the potential here but I'm going to wait for the dust to settle before I consider buying back in. I haven't held this stock for several months now.

GLTA longs.