Peregrine Diamonds Ltd. PGDIF

PEA - Key items not included

[ekim]

A few things not included in the recent PEA, not including the obvious resource below 300 mbs.

1 - Broken diamonds at CH-7 lead to an unquantified and artificial decrease in grade by 10 to 40%. Lead to a tough job trying to get a realistic valuation model. A clean sample would probably increase the value of stones.

2 - www expert on the CH-6 valuations basically said that the high end valuation (not used in the PEA) would be conservative. need more parcels from CH-6 to be able to move the base model valuation  higher on the assumption that this independent guy was right.

3 - PEA threw a bunch of diamonds in the waste pile. Here are the caustic results from CH-20 that is included in the Ultimate pit outline. They were able to include KIM-C into the PEA this time...but still left CH-20 out of the equation.

That coarse distribution above would likely fit perfectly in the CH-6 curves...just a question of whether it is $200 per tonne material or $500 per tonnne material or somewhere in between. This would also reduce the strip ratio a couple of percentage points. Need to poke some more holes into CH-20 and see/confirm if it matches CH-6 distributions. They might be able to piggy back the valuation model on that if there are enough similiarities.

A couple hundred thousand tonnes at $500 per tonne is a nice CAD$100 million waste pile.
That type of waste pile would be a lot of juniors dream deposit.

LONG...PGD

EKIM

[Kidlapik]

Jeez I really need a refresher course on all the Chidliak potential. Remind me Ekim is CH-20 part of that "string of pearls"? These were anomalies streaming out from the CH-6 deposit sort of right? Also was there not another anomaly that never got explored? a relatively large magnetic anomaly area? God they had a term for it......jeez I have to brush up on DD!

[ekim]

CH-20 is the first pearl North of CH-6. They had an anomaly South of CH-6 that they determined was basically shallow magnetic sand.  On the far north end of the deposit at or just past the last pearl, they drilled into some dyke material about 1 metre thick near surface. They haven't really done much beyond a shallow drillhole. The pearls are not really amenable to Open pit mining

[shneps]

It's interesting, this is the exact problem that DeBeers has at the Victor mine site. DeBeers has pretty much admittedly said they built a 7000tpd mill for the Victor pipe but this size mill is not economical for the remaining pipes. DeBeers has stated they need to find the best way of mining smaller pipes because the big ones are not around( or haven't been discovered yet). Victor will

[ekim]

Interesting concept. The problem with Mill location is that CH-6 has all the value and CH1/7/31/44/45/46 has all the tonnage. The tonnage is screaming to put the mill there...but the economics say otherwise.  go with the economics and if you can figure out a method as you say to be a bit more mobile...even better. LONG...PGD EKIM

[shneps]

Ekim, take a look at the ten mineral leases. Look at the ones that actually have known kimberlites on them and what doesn't. This will pretty much tell you the assumed location of the mill site. Keep in mind when DeBeers was involved they had already approached ADP to provide the DMS unit required (visit their website) and infrastructure locations have pretty much been already predetermined

[ekim]

I think I might have come aross the claims for the mineral leases..but never really mapped them out. Do you  know if they have been finally converted to Mining Leases. I believe the process has taken longer then expected as the Mining Recorder responsilities switched from the Federal Government to INAC a couple of years back. They have their main office in Iqaluit. I don't think they