Peregrine Diamonds Ltd. PGDIF

from Open Pit Only to OP + Underground

[Silverwhere]

The Aug 2016 PEA studied Open Pit Only at CH-6 and CH-7. The PEA was a prelim study to table some base numbers (“The purpose of this study is to obtain and document a preliminary project design and economics”). We now shift to a higher CH-6 gear - to uncover additional high grade drill bit truth.
 
The big boys want to see more out of Chidliak so more CH-6 meat they will get. They want more CH-6 proof to make it worth their while to get involved. CH-6 is & always has been the priority. It holds the key to PGD’s initial mine development success.
 
As ekim stated: “More CH-6 tonnage lessens the averaging down of the CH-7 margin” & this terrific post (thanks ekim!):
 
https://www.stockhouse.com/companies/bullboard/t.pgd/peregrine-diamonds-ltd?postid=25939086
 
So to quote Emeril: “Bam! Let’s kick it (CH-6) up a notch”.
 
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 6, 2017) - Peregrine Diamonds Ltd. (TSX:PGD) ("Peregrine" or "the Company") is pleased to announce that it has completed an internal concept study of a potential open-pit plus underground mining development at its 100% owned CH-6 kimberlite pipe at the Chidliak Diamond Project near Iqaluit, Nunavut, Canada. The study was completed in consultation with JDS Energy & Mining Inc. ("JDS").

The study has concluded there is the potential to substantially enhance the economics of the Chidliak Project by incorporating an underground mining operation below 260 metres of depth at CH-6, the current bottom of the open pit Inferred Resource defined in the August 2016 Preliminary Economic Assessment ("PEA") (see below). As a result of this conceptual study, a drill program targeting this deeper kimberlite is planned to commence in June 2017 to expand the resource to depths up to 500 metres below surface. In addition to the resource expansion drilling, geotechnical work and environmental studies in the Chidliak Project area and proposed transportation corridor will continue.
 
CH-6 PEA AND OPEN PIT PLUS UNDERGROUND CONCEPT STUDY
 
JDS completed a positive preliminary economic assessment titled "Preliminary Economic Assessment Technical Report of the Chidliak Project, Nunavut, Canada" dated August 19, 2016 on a Phase-One open-pit only mining operation of the CH-6 and CH-7 kimberlite pipes.
 
In December 2016, the Company engaged JDS to complete an internal, concept-level study on the project economic uplift that could be realized by developing the CH-6 kimberlite to a depth of 500 metres as a combined open-pit plus underground mining operation. The results of this study are excellent and have significantly changed the specifics for the 2017 work program. The study clearly demonstrates the benefit of focusing the 2017 program on proving the resource potential at CH-6 below 260 metres, the current bottom of the Inferred Resource in the PEA.
 
2017 CH-6 WORK PROGRAM
 
The 2017 work program at Chidliak will now focus on three main objectives:
 

• Expansion of the current Inferred Resource at CH-6 - through diamond core drilling of approximately 4,000-5,000 metres to further demonstrate geological continuity, establish pipe margin pierce-points and obtain spatially representative kimberlite samples for caustic fusion diamond assay. The main objective will be to increase the depth of a categorized resource from 260 metres to 500 metres. Caustic fusion results will be used to model diamond grade and grade distribution of the kimberlite to 500 metres.

• Refine open pit geotechnical design parameters - as part of the 2017 drilling program, oriented HQ diameter core and other geotechnical data required to refine the open-pit parameters, particularly the pit slope angles, will be acquired. This data will enable assumptions regarding open pit design to be tested and further refined.

• Advancing permitting - through continued environmental monitoring programs of the Chidliak Project area and the proposed transportation corridor.

 
The Company is currently working with Mineral Services Canada to finalize parameters for the 2017 drill program that would support robust future resource estimates. All necessary preparations to initiate this program, including equipment acquisition and camp preparation, were completed in 2016 and all permits have been obtained. The Company expects the microdiamond analyses to be completed in the third quarter of 2017 and anticipates an updated resource for CH-6 to be declared in the fourth quarter. If the resource at depths below 260 metres is of sufficient size and diamond grade, a new PEA outlining an underground mining operation for this material, in addition to the existing open-pit operation, could be completed in the first quarter of 2018. Total cost for the 2017 work program is estimated at C$7.5 million.
 
https://www.marketwired.com/press-release/peregrine-diamonds-completes-internal-ch-6-open-pit-underground-mining-study-revises-tsx-pgd-2200618.htm
 

If this CH-6 OP + UG eureka moment delivers the goods (to become the diamond darling “ show me the beef ” corporate crowd pleaser) well, be prepared to buckle up!

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