Updated Chidliak PEA Shows Over 22 Million Carats Inferred in Phase 1 of Diamond Mine

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Wednesday, May 23, 2018

Peregrine Diamonds Ltd. (TSX:PGD) said Wednesday morning that the updated independent preliminary economic assessment for its Chidliak Phase One Diamond Development had a meaningful positive impact on resources at the project. The Vancouver-based company's massive 317,213-hectare Chidliak project is located 120 kilometres from Iqaluit, the capital of Nunavut, where 74 kimberlites have been discovered to date, with eight being potentially economic as evidenced by drilling and microdiamond analysis.
The latest data incorporated the expanded diamond resource at the CH-6 and CH-7 kimberlite pipes, lending further credence to phase one of the project representing a robust open-pit mining opportunity with attractive economics. Peregrine owns 100% of the diamond marketing and sales rights at Chidliak and there are no non-government royalties creating overhang on margins.
Per the report, the CH-6 Inferred mineral resource is now17.96 million carats in 7.46 million tonnes at an average grade of 2.41 carats per tonne. That was up by 61% versus previous estimates with respect to tonnage. Contained carats were increased by 58%.
With the additions, total carats in the Inferred category are more than 22 million.
The PEA theorizes a mine life of 13 years, but it's worth noting the scale of the property and the fact that both CH-6 and CH-7 remain open at depth, meaning there is compelling reason to believe the project will be expanded.
The assessment goes on to conservatively estimate a pre-tax net present value of $1.07 billion and a pre-tax internal rate of return of 38.6%. On an after-tax basis, the NPV is $679 million and IRR is 31.1%.
Shares of PGD have been doing well in 2018, rising from a low of 11.5 cents on January 10 to as high as 18 cents on March 12. Shares closed trading Tuesday at 15 cents.

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