by Greg Klein | May 7, 2014
Investors evidently liked what they saw when Peregrine Diamonds’ (TSX:PGD) Chidliak project debuted a maiden resource estimate for the CH-6 kimberlite pipe on May 7. The report from Baffin Island showed:
- 2.89 million tonnes of kimberlite averaging 2.58 carats per tonne for 7.47 million carats of diamonds inferred
The resource comes from the pipe’s top 250 metres and remains open at depth. Peregrine hopes to add more inferred carats by drilling 2.6 million to 3.47 million tonnes of kimberlite that the company estimates to sit below the resource.
Peregrine also reported tonnage estimates for two other pipes on the 748,000-hectare property 120 kilometres from the Nunavut capital of Iqaluit. CH-7, about 15 kilometres southeast of CH-6, shows an estimated 2.75 million to 3.97 million tonnes to a depth of 280 metres. CH-44, 17 kilometres southeast of the new resource, has an estimated 1.16 million to 2.05 million tonnes down to 230 metres’ depth. Like CH-6, both pipes are open at depth and targets for exploration, the company stated.
In 2010 a surface mini-bulk sample from CH-7 averaged 1.04 carats per tonne. Peregrine expects to report more diamond results from the two additional pipes this quarter. Exploration has revealed 67 kimberlites at Chidliak so far, with seven of them considered “potentially economic.”
An Antwerp evaluation of a 1,013-carat CH-6 parcel released last February rated an average market price of $213 per carat within a range of $162 to $236 per carat and a base model price of $188.
The company has also stated Chidliak “hosts mineral anomalies indicative of platinum-palladium, lead-zinc and copper deposits.”
Peregrine’s 72%-held WO project in the Northwest Territories’ Lac de Gras region has a 2008 resource for the DO-27 kimberlite showing 19.5 million tonnes averaging 0.94 c/t for 18.2 million carats indicated.
The May 7 news boosted Peregrine to $0.51 after opening at $0.44, three cents above its previous close. The stock finished May 7 on $0.475. At press time the company had 143.84 million shares outstanding for a market cap of $68.33 million.