Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:Inferred to Indicated

[ekim]

It is in reference to the resource that is available to the engineers to put in an open pit or underground mine plan.

Sometimes the geologists put a pit boundary or a very low cut off to confine the inferred resource..but not in this case..not generally in Kimberlite pipes.

An open pit or underground mine is thrown on the inferred resource just for pure economics.

Once the resource is converted to indicated...then the resource can be thrown at a pit or an underground and if economic...a declared reserve is then made.

Once a reserve is made..that has an accounting implication to it as well.

Reserves are proven or probable. Indicated tonnages usually seep into the probable category.

measured resource or a proven reserve or usually only done in a production scenario where they can start seeing the face exposed or the pit wall exposed.

Open pits tend to have more proven or measured resources as drilling density usually decreases at a depth because of cost.

Probably doesn't clarify it does it?

LONG...PGD

EKIM