Peregrine Diamonds Ltd. PGDIF

Is the winter programme cancelled?

[ekim]

Ramblings of that only on this thread. Wonder if someone could provide some confirmation on whether that is the truth or not.

As for the program itself...here is a snippet from the feb 9th earnings. A lot more detail in the permit applications.

"Further  programs  at  Chidliak  as  recommended  in the  PEA  consist  of  (i)  core  drill  to  potentially upgrading existing TFFE’s to a Mineral Resource, and (ii) bulk sampling programs with the objective of potentially upgrading the Inferred Mineral Resource to an Indicated Resource level. The Company estimates  that  the  combined  cost  of  these  programs  would  be  approximately  $15  million.  The Company will consider implementation of either or both of these programs at such time as financing or other potential arrangements are made which are appropriate to the support of these expenditures (See Liquidity and Capital Resources).  The Company has been in discussions with a number of groups concerning  the  on-going  development  of  Chidliak.  
The  Company  is  continuing  discussions  with various  entities  regarding  various  options  to  finance  future  work  programs  and  advance  Chidliak towards commercial production.  There can be no assurance that these discussions will be successful."

So, we have 2 potential programmes that may be combined or not or defeerred.

1-- Core drill to convert TFFE to a resource.
2-- Bulk sample to firm up valuation models to stamp it with indicated category.

These are both recommendations for PGD, a junior to proceed with and it is really the only path for a junior to follow. Keep de-risking and de-risking, etc.

As far as Rio Tinto and Anglo ,etc. go....they could care less about converting material from tffe to resource to get a few more diamonds to firm up the valuation. They take a lot of this stuff in house and have a big cash flow treasury chest that they can use for whatever they want and they will use it they want.

Point is I would like to see a deal done before early march to possibly push through the winter programme as mentioned in the permitting....but if a deal is not done by end of February...it doesn't necessarily mean that the winter programme was a necessity or want for the other party.  You really need to take off the junior hat and put on the conglomerate hat to see a project in a very, very different light. The conglomerate will absolutely care about economics, money, etc. ...but they will not just be looking at a 3rd party consulting firm who came up with a NPV based on many assumptions (correct or incorrect).

We sit, we wait.

Maybe it would be worthwhile to discuss what a conglomerate would do if they got dealt a chidliak hand. I'm all ears.

LONG...PGD

EKIM