Peregrine Diamonds Ltd. PGDIF

RE:RE:Yes we can value the royalty

[oiltar]

aea257 Thanks for the question. My estimate for CH-7 is lower than CH-6 due to expected lower grade in CH-7.But CH-7 has a higher population of white  85% diamonds than CH-6 at 75%.It also may have bigger diamonds but we will wait to see.

But lets put it into world context average world diamond mines have on average 10% white diamonds so CH-6 and CH-7 are 7 to 10 times the world average.We could not be in a better position of quality.

My theory is Debeers will have no choice to buy back into Chidliak.They were late to the party in the early 90s and missed the chance to invest in the two best Canadian diamond mines Ekati and Diavik.They setteled for a buy out of Winspear and Snap to this day has never turned a profit.Victor has the highest quality diamonds in the world but only 7 million cts of them and is near mined out with Debeers stating the other pipes around Victor are not economic.

So Debeers is in a very tought spot.Mine snap diamonds for no profit and close down Victors high value diamond mine as its near out of ore.They will get 2 million cts from GK per yr but of less quality than Chidliak. With PGD confirming the rock value of the CH-6 at twice the value of the current richest diamond ore in the world Diavik then the Ch-7 rock value in line with Diavik as well Debeers will have no choice but to bid for PGD before DDC/Rio beats them to it.The Friedlands have assured me they can and will block a hostile bid by any party.

Debeers needs the quality of the PGD diamonds so does DDC/RIO.

Don't let a 22 cent stock price fool you Eric and Robert have set PGD up for a bidding war on the CH-7 results.For those who want to see the future of PGD look to Roberts creation of a bidding war for Diamond feilds were he pit Inco in one corner and Falconbridge in the other.He axtracted a $5 billion from Inco bid for Voiseys Bay with in situ value of only $2.5 billion at the time.

PGD has outlined a $7 billion ore value and thats a rising number with more exploration.

Buy all the shares of PGD you can now ahead of the CH-7 results and wait for the bidding war.Its comming