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Peregrine Diamonds Transfers Certain Assets to Subsidiary for Exploration

Mar 24, 2015 1:29 PM   By Jeff Miller
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RAPAPORT... Peregrine Diamonds Ltd. transferred the Lac de Gras project in the Northwest Territories and the Nanuq and Nanuq North properties in Nunavut to its wholly owned subsidiary, Peregrine Exploration Ltd.  In addition, Peregrine Diamonds granted Peregrine Exploration an exclusive license to utilize its North American diamond exploration database, which includes information from over 38,000 kimberlite indicator mineral samples that have been collected across Canada over a 10 year period.

The Lac de Gras project hosts the nine hectare DO-27 kimberlite, which has an indicated mineral resource of 18.2 million carats and is open at depth, according to Peregrine Diamonds. The Nanuq and Nanuq North properties currently host four diamondiferous kimberlites and the company considers it to have excellent exploration potential.

Brooke Clements, the president and CEO of Peregrine Exploration, explained,  "With diamond prices projected to rise due to strong demand, it is a great time for Peregrine Exploration to advance its diamond properties and focus on finding the next diamond district. A key focus will be the DO-27 diamond resource which is located just 27 kilometers from the Diavik diamond mine and 35 kilometers from the Jay kimberlite at the Ekati diamond mine, where a pre-feasibility study was recently completed. With a resource of 18.2 million carats, DO-27 is ideally positioned to play a role in the continued evolution of the Lac de Gras diamond district. There is excellent potential for the discovery of another prolific diamond district in North America and I believe that our proprietary diamond exploration databases and the unparalleled experience and expertise of the Peregrine team gives us a real strategic advantage to make that discovery."

In addition to the indicated mineral resource at DO-27, Peregrine plans to  further explore  6.5 million to 8.5 million tonnes of kimberlite at open depth. The range of diamond values -- from a 2,075-carat parcel in 2007 -- was between $43  and $70 per carat, with a base case of $51 per carat, according to the company. WWW International Diamond Consultants, which performed the first DO-27 valuation, advised Peregrine Exploration this month that diamond prices have increased an average of 65 percent since the original report.

Approximately 20 tonnes of kimberlite drill core recovered from DO-27 in 2007 is stored in Yellowknife and is available for processing to assess the diamond grade and further evaluate potential commercial processing options.

Peregrine Diamonds operates the 582,477-hectare Chidliak project, which is located 120 kilometers from Iqaluit, the capital of Nunavut. The project defined an inferred mineral resource of 8.57 million carats  for a portion of the CH-6 kimberlite. As part of  ongoing resource development, core and small diameter reverse-core drilling was completed at the CH-6, CH-7 and CH-44 kimberlites in 2014. The objective of the 2015 Chidliak program is to delineate a resource base that would be the subject of a preliminary economic assessment in 2016.

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Tags: Canada, Jeff Miller, mining, Peregrine Diamonds, resources
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