Peregrine Diamonds Ltd. PGDIF

An old but wise friend.

[xDeBeers]

I caught up with one of my friends and colleagues over the Xmas break. He did all the evaluation work at the De Beers Victor mine among others. He is also of the (expert) opinion that Chidliak will be a mine. He made several other interesting points:

1. While I have always said that the Chidliak plant will be small and far less capital intensive, he reminded me that production costs will increase with a smaller plant.

2. Pushing an ice road over tundra is much easier than over big rivers and lakes.

3. Gahcho Kue was found in ~2000 and it is only coming on line now. Took ages to get to mining stage.

4. A botswanan pipe that De Beers sold for $13M to Lucara was assessed at 130$/ct by De Beers. Lucara guessed the larger diamond population was there and had not been sampled properly. They changed the crushers to allow larger diamonds through and now the mine is at $500+/ct. They have sold individual diamonds for over $20M. Bottom line. De Beers makes mistakes. Of course I never did when I worked there :D.

I can't confirm points 3 or 4.

FWIW. This geo is heavily invested in graphite in Mozambique. He thinks it will become a bulk commodity like iron ore.

Quite a few stories appearing on-line about what to invest in, in 2015. Diamonds tops the list due to the rapid $/ct price increases in 2014.