from Will P tonights stockwatch Eric Friedland and Tom Peregoodoff's Peregrine Diamonds Ltd. (PGD), down one-half cent to 18.5 cents on 228,000 shares, could get an indirect helping hand from the Canadian government for its Chidliak project on southeastern Baffin Island. Leona Aglukkaq, a cabinet minister who represents the riding of Nunavut, was in Iqaluit late last week to tout her government's $63.7-million contribution to an $85-million marine port in the Baffin Island city, home to 6,700 of her constituents. Mr. Friedland, chairman, and Mr. Peregoodoff, president and CEO, say an upgraded port capable of handling more cargo at a faster pace would "improve the quality of life and lower the cost of living for the people of Iqaluit and the communities on Baffin Island."
Naturally they have more in mind than the happiness and welfare of Baffin Islanders: the new port would also cut costs significantly for a mine at Chidliak, just 120 kilometres northeast of Iqaluit. Peregrine will of course need a winter road to connect its mine with Iqaluit, but its transportation costs would be significantly lower than those at Lac de Gras, where the Ekati and Diavik mines are connected to Yellowknife by a 300-kilometre ice road. If Peregrine can factor some of those lower costs into its preliminary economic assessment of Chidliak, expected next year, the dream sheet could be an even happier vision of a rosy mine plan than the company's shareholders are already expecting.