Peregrine Diamonds Ltd. PGDIF

CH-6 Underground expansion potential

[Kidlapik]

The previous estimates for CH-6 from 260m-380m depth called for an estimated tonnage increase of between 2.15 to 3.49-million-tonnes. As the drilling results show the resource is open at depth and the wall angle is roughly a straight shot, 90 degrees, lets double that and we are looking at: 4.3 to 6.98-million-tonnes at 2.45carats per or 10-17MILLION carats. Using the WWW valuation of $188US/carat that is an in situ increase of between $1.98-3.22US-BILLION in just one pipe....

[cudjo]

kidlapik, resource is open at depth, to where they have drilled to date, but you’re (only for you slippery) making a HUGE assumption it will continue below as above from 260-380m, mommanature could throw an "actual" curve ball in there, to be adult about it, what is the other scenario if indeed there is a curve ball?  Another year, more financing, to look at CH7 in more detail

[cudjo]

as your assignment today, recommend everybody go look at the 12th slide in the resource presentation and study the diagram and the numbers without the rose colored glasses on, note the quick narrowing of the high grade kim at 260M, so the ONLY tell will be the actual drilling to 500M, do not assume, good luck. see page 12:  https://www.peregrinediamonds.com/assets/docs/technical-update2016

[Kidlapik]

I appreciate where you are coming from cudjo, it is always good to have a balanced viewpoint. Even the "low grade" kimberlite zone comes in at 2.12cpt so the #'s I used I consider a fair range in which to compare actuals achieved against, hopefully, in a years time.

[Kidlapik]

There is a new corporate presentation out on the website that uses slightly different figures. 2.37cpt LOM average with $178US LOM average value.

[ekim]

The 2.37 cpt LOM average might be because they left some carats in the ground for the PEA. They would have tried and extracted out all the 4 cpt+ material in the ultimate pit for the PEA. LONG...PGD EKIM

[cudjo]

good point Kidlapik, we will see what the drill brings up, any thoughts on the financing? good luck.

[Kidlapik]

No clue but given managements history I am not prepared to rule out a discounted rights offering. Though they barely managed to raise $7million the last time they did it so I hope they find a better way, but as they say hope is not a strategy.

[mill44]

Rights are risky for the Friedlands in my opinion. Although I would not mind if someone would get a 5-10% interest in PGD, just to counter their power.

[cudjo]

risky, meaning they would not fill the offering like last time?  The first go around they stated they would fully participate, as well as buy up any rights not exercised, results - packed house, the last one they stated they expected management to fully participate sans the left over like the first, results, not completely filled, short a couple of million bucks.  If they stated

[mill44]

No, risky for them, possibly ok for small shareholders. They said that they were in talks with several parties. I assume the talks went nowhere because the price was too high. People keep talking about how Chidliak's numbers are better than anything else around.. With a rights offering at a discount, 15c or under, at least 50M new shares would be issued. How many  shares and rights would

[cudjo]

agree mil, PP at a premium or at a discount?  Or does it matter?

[mill44]

Not really. People on the sidelines waiting for cheap shares will drive the price up anyway once they realize that there is a real chance of missing out.