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The company has increased the inferred mineral resource estimate for the upper 250 meters of the CH-6 kimberlite pipe by 15 percent. It now sits at 3.32 million tonnes of kimberlite containing 8.57 million carats for a grade of 2.58 carats per tonne.
Peregrine Diamonds (TSX:PGD) kicked off the week with the announcement that it has increased the inferred mineral resource estimate for the upper 250 meters of the CH-6 kimberlite pipe by 15 percent.
It now sits at 3.32 million tonnes of kimberlite containing 8.57 million carats for a grade of 2.58 carats per tonne.
In addition, the company has upped the estimate of additional kimberlite tonnage at CH-6 by 23 to 26 percent and has “significantly” raised the tonnage estimates for the CH-7 and CH-44 kimberlite pipes. Tonnage for CH-6 has been bumped to 3.2 to 4.38 million tonnes, while CH-7 is now at 3.72 to 6.01 million tonnes and CH-44 is at 1.27 to 3.19 million tonnes.
All of those kimberlites are located at the company’s Nunavut-based Chidliak project, and the increases are the result of drilling completed by Peregrine during 2014.
Commenting positively on the news, Brooke Clements, president and CEO of Peregrine, said, “[i]t is very satisfying to see that our drill programs resulted in significant increases of the diamond resource at CH-6 and tonnage estimates at CH-6, CH-7 and CH-44. It is important to note that all of the resource expansion at CH-6 was near surface, above 120 metres depth. We are confident that more core drilling and the collection of bulk samples in 2015 will allow us to continue to grow the Chidliak diamond resource and complete a Preliminary Economic Assessment in 2016.”
He’s likely not the only one that’s pleased. Just last week at Cambridge House International’s 2015 Vancouver Resource Investment Conference, John Kaiser of Kaiser Research identified Peregrine as one of his top picks in the diamond space, noting that he owns shares in the company. Watch the video below to hear his thoughts.
As mentioned, moving forward Peregrine will be looking to put out a preliminary economic assessment in 2016. Shorter term, however, the company plans to focus on further expanding the inferred mineral resource at CH-6 and converting the tonnage estimates at CH-7 and CH-44 into inferred mineral resources. The bulk sampling mentioned by Clements will help it do so.
Shares of Peregrine ended Monday flat at $0.14.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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