December 17, 2007
Vancouver, British Columbia, Canada - Monday, December 17, 2007 - Brooke
Clements, President of Peregrine Diamonds Ltd. (“Peregrine”) (TSX: PGD)
is pleased to report modelled diamond values for 2,075 carats of
diamonds recovered from the nine hectare DO-27 kimberlite pipe, WO
Diamond Project, NT, Canada. The average modelled value ranged from
US$43 to US$70 per carat, with a “Base Case” average of US$51 per carat.
The valuation was completed in Antwerp, Belgium under the supervision
of WWW International Diamond Consultants Ltd. (“WWW”), an
internationally recognized diamond valuation and consultancy company.
These valuation results, along with updated grade and geological
information, will be used by Peregrine and AMEC Americas Ltd. (“AMEC”)
to complete the Preliminary Technical Assessment (“PTA”) report, which
will investigate the current economic potential of DO-27.
DIAMOND VALUATION RESULTS
The cumulative 2,075 carat diamond parcel was acquired by large
diameter, reverse circulation bulk sample drilling campaigns completed
by Peregrine in 2005, 2006 and 2007. All of the diamonds valued are from
the Main Lobe and Northeast Lobe pyroclastic kimberlite (“PK”) units.
An additional 188 carats that were recovered from other minor,
volumetrically insignificant, Northeast Lobe lithologies in 2006 and
2007 were not included in the valuation model as these lithologies may
not be included in the final resource model. Detailed information on the
three bulk sampling campaigns can be found in Peregrine press releases
dated June 14, 2005, September 5, 2006 and September 18, 2007.
The valuation results are summarized in the table below.
DO-27 DIAMOND VALUATION RESULTS
(1) Sample weights represent
the total carat weight of diamonds presented for valuation following the
combination of individual sub-samples and after acid cleaning.
| Bulk Sampling Program
|| Weight Of Valuation Sample (Carats)(1)
|| Largest Diamonds (Carats)
|| “Base Case” Diamond Price Model (US$/Carat)(2)
|| “High” Diamond Price Model (US$/Carat)(2)
|| “Low” Diamond Price Model (US$/Carat)(2)
|| 9.45, 7.03, 6.03, 5.17, 4.84, 4.35, 4.19
|| 7.11, 3.91, 2.34
(2) As determined by WWW International Diamond Consultants Ltd.
(3) Values from the WWW October, 2006 price book, as reported by Peregrine on November 6, 2006.
(4) The combined sample was re-priced and modelled based on the WWW October 31, 2007 price book.
The modelled price estimates for DO-27 represent an average diamond
price in the rough diamond market in November, 2007 that might
reasonably be expected, based on standard production-scale recoveries of
commercial sized diamonds greater than 1.00 mm in size.
The most valuable diamonds in the 2007 parcel were a 4.35 carat fancy
yellow octahedron and a 4.19 carat white stepped octahedron, both valued
at US$1,900 per carat (see photograph
In addition to determining a modelled average price, WWW showed a 1,123
carat parcel from the Main Lobe PK lithology from the 2007 bulk sample
to four other internationally recognized, Antwerp-based rough diamond
valuators in order to obtain additional market-based, unmodelled
valuations. This parcel was selected for spot price valuation as it was
the single largest representative parcel of Main Lobe PK diamonds.
Average October, 2007 spot prices for the 1,123 carat parcel of US$46,
US$48, US$52 and US$56 per carat respectively were determined by the
four groups whereas the average spot price determined by WWW was US$46
WWW believes it is highly unlikely that the modelled average price will
be lower than the minimum values and that the high values should not be
considered maximum values. The modelled average price is extremely
sensitive to the value of large diamonds so there is a high degree of
uncertainty in the modelled value of the larger stones that would be
expected in a production scenario. This is an important fact given that
the 2,075 carat parcel s