March 8, 2016
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to announce the results of an independent diamond valuation for an aggregate 735.75 carat parcel
of commercial-size (+1.18 mm square mesh) diamonds recovered from five geological units of the CH-7 kimberlite pipe at the Company’s 100 percent owned Chidliak Diamond Project, Nunavut, Canada. The current average price was US$100 per carat, and ranged from US$73 to US$154 per carat across parcels from the five geological units represented. The modelled average price ranged from a low of US$94 per carat to a high of US$155 per carat, with a base modelled price of US$114 per carat.
The eight highest value diamonds ranged in size from 1.35 carats to 5.33 carats, weighed 21.58 carats in total, and had a current average price valuation of US$1,619 per carat.
The diamond valuation was undertaken in Antwerp, Belgium by WWW International Diamond Consultants (“WWW”), an international diamond valuation and consultancy company. Diamond prices were determined using their February 1, 2016 price book and their proprietary price modelling techniques which predict the average price per carat in a mine production scenario. Through its partnership in Diamonds International Canada Ltd., WWW performs the Canadian federal and provincial government diamond valuations for producing diamond mines in Canada and has been working with Canadian diamond production since 1998.
Photos of the valued diamonds from CH-7 are available here.
Mr. Neil Buxton, responsible for geostatistical modelling at WWW stated “based on our analysis of the parcel, WWW believes that if CH-7 were in production in the current diamond market, it is unlikely that the average price would be lower than the low average modelled price. It is equally important to understand that the high average modelled price does not represent a maximum price and that the ultimate diamond price could be higher than US$155 per carat.
These results need to be confirmed with a larger sample.”
Mr. Tom Peregoodoff, Peregrine’s President and CEO stated “This result represents the successful culmination of the 2015 Resource Development Program at Chidliak and is further confirmation that Chidliak is Canada’s highest potential undeveloped diamond resource. The diamond valuations from CH-7 provided by WWW will support the maiden CH-7 resource statement expected this month and, together with the revised resource at CH-6, will form the foundation of the independent Preliminary Economic Assessment of a Phase 1 Diamond Mine expected this June.”CH-7 DIAMOND VALUATION
As reported on January 12, 2016, Peregrine recovered an aggregate 717.65 carat parcel of commercial-size (+1.18 mm) diamonds from 814.0 dry tonnes extracted by large diameter reverse-circulation drilling of the KIM-2, KIM-3, KIM-4 and KIM-5 geological units in the CH-7 kimberlite. The diamonds were shipped to Antwerp in January 2016, and were accompanied by a previously unvalued 47.29 carat parcel obtained in 2010 by excavating 47.2 dry tonnes of the KIM-1 geological unit of CH-7 from surface. The CH-7 diamonds were deep-cleaned by acid boiling and sized to the +3 DTC sieve class in Antwerp, resulting in an aggregate 735.75 carat commercial-sized parcel for valuation.
WWW determined current market values ranging from US$73 to US$154 per carat for five parcels ranging from 46.01 carats to 306.37 carats in weight, with eac