Peregrine Diamonds Ltd. PGDIF

RE:RE:RE: All weather road.....,

[mill44]

I am going by this: "Infrastructure Trade-off Study As part of the PEA, JDS completed a rigorous cost-benefit and risk analysis of constructing an all-weather road (AWR) to connect the Chidliak Project to Iqaluit on a year-round basis, compared to using an enhanced-winter road (EWR), which would generally be open for approximately six weeks during late winter. As Table 7 illustrates, the economic trade-offs of the two options are minimal. While the pre-production capital for the AWR is somewhat higher, the NPV is higher for an AWR as the annual transportation and operating costs are significantly reduced. In addition, the AWR option eliminates the risks associated with loss of capacity on the EWR as a result of weather-related shut downs and eliminates the inherent cost implications of using aircraft to support the enhanced winter road."