PEREGRINE DIAMONDS ANNOUNCES A POSITIVE PRELIMINARY ECONOMIC ASSESSMENT FOR THE CHIDLIAK PHASE ONE DIAMOND DEVELOPMENT PROJECT
July 7th, 2016
Phase One development envisages a 10 year mine life at an annual average production rate of 1.2 million carats
After-tax Net Present Value of C$ 471 million, Internal Rate of Return of 29.8% and a capital payback period of two years
Conference call and webcast on Tuesday, July 12, 2016 at 8:00AM Pacific Time
Vancouver, Canada – Peregrine Diamonds Ltd. (TSX:PGD) (“Peregrine” or “the Company”) is very pleased to announce the positive findings of an independent Preliminary Economic Assessment (PEA) for the Chidliak Phase One Diamond Development (“CP1D”) of the CH-6 and CH-7 kimberlite pipes on the Company’s 100%-owned, Chidliak Diamond Project on Baffin Island, Nunavut, Canada. The PEA highlights that the CP1D represents a robust, high margin, ten-year, open-pit mining project with very attractive economics. Peregrine owns 100% of the 564,396 hectare Chidliak Project, where 74 kimberlites have been discovered to date, with eight currently being identified as potentially economic. The Company also owns all of the diamond marketing and sales rights and there are no non-government royalties or other encumbrances on diamond production.
Exceptional diamonds are forever and the last few months have been an epoch of new exceptional diamonds. In the wake of the discoveries in Botswana (Lucara Diamonds Karowe kimberlite south lobe – the 1,111 ct Type IIa Lesedi La Rona and several other large diamonds) and in Angola (Lucapa Diamond Company – 404 ct recovered in the Lulo project, recently sold by 16 million USD), Petra Diamonds recently announced the discovery of an exceptional 32.33 carat pink diamond from the Williamson mine in Tanzania. This diamond was sold for US$15.0 million (US$463,965 per carat); Petra Diamonds also retains an interest in the polished proceeds (Petra will receive 10% of the value uplift of the polished).
Both the Karowe kimberlite (especially its south lobe) and the Lulo alluvials (and the close by kimberlites) are establishing a name as new sources for very large diamonds. Relatively new technological developments – the XRT diamond recovery machines, have also had a major contribution in the surge of discoveries.
A last minute decision – I am traveling to Toronto to attend PDAC 2016.
It’s the perfect place to meet and talk: Angola, Mozambique, Brazil and Portugal, diamond and other gems, Nb-Ta and other pegmatite minerals, tungsten, gold, ferrous and base metal deposits, industrial minerals, natural stone. Challenges and opportunities.
The International Kimberlite Conference is the most important scientific and technical event on the kimberlite and diamond geology and exploration. This edition will be held in Gaborone, Botswana in 2017, marking the 50th anniversary of the discovery of the first economic kimberlite in Botswana, now the Orapa Mine.
To highlight the transformation of Botswana into the largest diamond producer by value worldwide and Gaborone becoming the world’s premier diamond centre, the anniversary will be celebrated at 11 IKC (11th International Kimberlite Conference) under the banner of “50 Years of Diamonds in Botswana”.
To obtain more information just check the Conference’s website: www.11ikc.com.
Lucapa Diamond Company Limited (ASX: LOM) (“Lucapa” or the “Company”) is preparing to commence the next phase of the the Company’s kimberlite exploration program at the Lulo Diamond Concession in Angola. New program includes extensive further evaluation of four known diamond-bearing Lulo kimberlites as Lucapa steps up its search for the sources of the exceptional alluvial diamonds being mined at Lulo. – March 23, 2015 ASX Announcement.
More than 80 kimberlite targets to be sampled and/or drilled at Lulo as part of a comprehensive 24-month program which builds on the positive kimberlite exploration results achieved to date.
New program to commence in April with extensive further evaluation of four known diamond- bearing pipes at Lulo and laboratory analysis of drill core.
First bulk samples also to be excavated from the priority L46 kimberlite, which has been identified as a likely source of the high-grade diamonds recovered from the E46 alluvial area at Lulo.
Program includes drilling of 48 priority targets in the western kimberlite province and first testing of 38 targets in the new eastern kimberlite province at Lulo.
Kimberlite program will utilise the original 10tph diamond sampling plant at Lulo to enable continuous alluvial diamond mining through main 150tph diamond plant.
Peregrine Diamonds Ltd. (TSX:PGD) reports a 15 percent increase in the Inferred Mineral Resource estimate for the upper 250 metres of the CH-6 kimberlite pipe, and a 23 to 26 percent increase in the estimate of additional kimberlite tonnage at CH-6. The tonnage estimates for the CH-7 and CH-44 kimberlite pipes have also significantly increased by 35 to 51 percent and 10 to 56 percent respectively, both results of drill programs completed by the Company in 2014. The CH-6, CH-7 and CH-44 kimberlite pipes are located on Peregrine’s 100 percent-owned Chidliak project (“Chidliak”) on Baffin Island, 120 kilometres from Iqaluit, the capital of Nunavut, Canada.
This information updates their initial May 2014 technical report, available at their site or in this blog’s REPORTS page.
Sínese is a Lisbon-based consulting and engineering company specialised in Economic Geology. For further information or advice on mineral projects (Angola, Mozambique, Portugal, Brazil or elsewhere), contact us at firstname.lastname@example.org or use the contact form.
Lucapa Diamond Company Limited (ASX: LOM) recently released some reports containing information (grade and stone size) on the samples recovered in their Lulo concession – our post of December 19 about the scheduled start of the alluvial operations.
The releases are detailed but we decided to extract the locations of their reported sampling pits and kimberlite and convert it to kmz layers so that you are able to feel first hand the information by browsing it with Google Earth or another suitable application. Consider it a late New Year gift from Sínese or a way to celebrate this blog’s 50th post.
The Kimberlite Provinces of Angola Map has just been released (in pdf format, A1 size). To get it, just click this link or write me an e-mail (email@example.com). This map follows the release in last October of our report “One century of Angolan diamonds”, which you can still get here or writing me an e-mail.
This is a project developed by Chambel, Correia and Caetano, the 3 Cs of Angolan diamonds 😉 . You can follow us here, our xmbl.wordpress.com (never perfect, continuously improving) blog or at Linkedin (look for and follow Sinese in Linkedin), joining the Diamonds – Angola Linkedin group or connecting with me. You can always write me an e-mail firstname.lastname@example.org.
Comments, suggestions, questions, help requests, project proposals, joint research projects on economic geology always welcome.