Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:RE:Rio Tinto's war chest

[ekim]

I do want to talk to Tom about the PEA recommendations.

There is a flaw or there isn't a flaw.

From a purely NI43-101 point of view...if the green light on the project is to get to the PFS as a milestone before greenlighting the next stage..they have left CH-7 out to lunch with respect to moving into the indicated category before being able to include into the PFS.

From a completely practical point of view....knowing full well that CH-7 ore will be not be milled until year 4 or 5 of the project (2025+)...why would you waste your time and money on elevating that from inferred to indicated??  You can do all that in 2022, 2023.

We all know CH-6 is where the NPV is and where the green light to construct a mine is. CH-7 has now proven to be a LOM extender...but is not to be milled at the beginning because of the rock value of CH-6 > CH-7 even when they do correct for rock breakage, etc.

Get the pit walls on CH-6 leaner and deepen the mine a bit and bring in as much carats from there as possible for a the first 5 years of Phase 1 development.

It really is up to the investor, the partner and mgmt to understand where practicality wins over NI-43101 traditional timeline.

If CH-7 is excluded from a PFS...it absolutely not excluded from the mine plan.
You can still have a mine plan with a random pit that doesn't have any 'official reserves...yet'...and you can't disclose the economics because of the absent of reserves.

I do want to get a firm answer from PGD on the intention of CH-7 in future work programmes...just for my record.

LONG...PGD

EKIM