Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:Your discussion G

[ekim]

Great post robybob.

CH-7 is a tale of two worlds.

First throw away domain 1, 3 and 5.
Volumetrically insignificant. They will feed the mill for a couple of years in the early stages and only need to reach marginal cut-off. I expect everyone of the domains to do that and then some.

Focus on Domain 2 and 4. They both race to the bottom of the pipe with current knowledge.
They both decide how deep the pit will go.

Domain 4 diamonds are the cream of the crop in the photos....especially since it includes the 5.33 stone. It will come in the top for valuations amongst all the domains. The colour distribution looks above average for the parcel as well.

The broken grade for domain 4, came in at 1.09 cpt...even the broken grade is above the benchmark Domain 1 grade. With the volume adjustment, you could see that rise to 1.2 to 1.5 cpt.

I would not be surprised if the high end valuation of Domain 4 comes in at US$200 cpt. They will have a low end and a base case and an actual as wel. It will be pretty big ranges.

You could still look at CAD$400 per tonne in a production setting for Domain 4 (IMO).

Domain 2 is the other important factor...but you also have to realize that as Domain 4 is deepened, Domain 2 will be blasted and moved whether it is waste or ore. A sunk cost is already their...so you only need to meet a marginal cut off value to send it to the mill. What is that? $CAD30 to 40/tonne. Cost of milling really.  That is a pretty low bar to meet and I don't think that will be a problem. Question is how much higher it will make it?

The grade is at 0.76 cpt and that will move up to 0.9 to 1 cpt after breakage adjustment factor comes in. Still has one big coarse distribution...which will reflect well in teh valuation. Colour distribution is not as good as Domain 4 and Valuations won't be as good. The HIgh end could easily be over US$100 per carat...the low end could easily be below $US100 per carat.

I'm looking at Domain 4 coming out with valuations that exceed expectations and Domain 2 coming out with valuations that meet expectations.

5 domains, but 2 domains really determine the depth of the pit and, in turn, the tonnage for the PEA.

Also, as more TFFE and deeper resources are found and converted to Inferred in the future, changes are, it will be domain 2 or domain 4.

LONG....PGD

EKIM