Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:RE:RE:RE:Port and Road and Share Price

[ekim]

Renard has poked a couple  of 1 km deep holes to extend their deposits down further.

Assuming Chidliak CH-6 goes down to 2 km and maintains structure...the question is about haulage costs and margin available.

If you are producing $130 per tonne of revenue and your costs are $100 per tonne down to 500 metres. You are going to be squeezing that margin as you reach down to 1 km and no way in H$LL are you going to be going to 2 km's deep.

CH-6 does not have revenue of $130 per tonne. It is going to have a blend of $400 to $1000 per tonne of material depending on if you are talkinga bout the High grade zone or the regular grade zone.

That is a lot of margin to squeeze before you become unprofitable.

1 km to 2 km down..you are talking about Platinum mines in South Africa. Not sure what the deepest mine in Canada is....might be 1 or 2 mines that go deeper then 1 km.

CH-6 will have a chance to go as deep as it profitably can. 
Like I have said before...the successful drilling between 250 metres to 525 metres below surface really increases the chances that 500 metres to 750 metres becomes a viable resource. Deeper then 750 metres is unknown at this time.

LONG...PGD

EKIM