Peregrine Diamonds Ltd. PGDIF

RE:Kaiser

[Kidlapik]

Those color charts from Pell's report are very interesting. Such a high % of white diamonds, those are the steak and potatoes of the diamond world. Maybe we get fancys sure but we do not NEED fancys for this to be extremely profitable.

Also, CH-6 has had a valuation done on roughly 1,000 carats of diamonds. Many diamond mines have valuations done on 10,000 carats of diamonds before going forward as the diamond game is a game of %'s and averages.

So think to yourself, what if I were a diamond valuator putting together a maiden diamond valuation on a new project. If a mine in production uses numbers generated from the valuation of 10,000 carats and here you are looking at the first 1,000 carats. The entire future of this diamond project and all its supports, not to mention your reputation are at stake. Are you more likely to be conservative? Yes, yes you are. That is exactly how the game is played. As the carat parcel for valuation grows larger so to does the modelled base value, WWW said as much after the first valuation was in.

" Based on our analysis of the parcel, WWW belives that if CH-6 were in production in the current diamond market, it is highly unlikely that the average price would be lower than the minimum modelled price. It is also important to understand that the high modelled price does not represent a maximum price and that the ultimate average diamond price in a mine production scenario could be higher than US $236 per carat." - CH-6 Valuation press release Feb.26, 2014

So their $162-236 with a base of $188 (while the parcel itself was avlued at $213/carat) is ONLY the starting point and has only established the MINIMUM valuation expected. More carats will mean a higher base which can be put into the PEA and further help the IRR.

Kaiser believes CH-6 now qualifies as a stand-alone mine. If CH-7 comes in anywhere near CH-6 in terms of carat valuation then that is full fledged diamond district status. Over 71 kimberlites have been discovered to date, with 8 currently listed as having economic potential and with dozens yet left with further testing being required. By the end of this year PGD could prove 2 out of 71 are massively profitable with another 6 having high potential, dozens left for further testing and unknown numbers left to be discovered.