Originally posted on WorldofMining.com
Diamond explorer Peregrine Diamonds (PGD) released the second and final batch of results from its bulk sample of the CH-6 kimberlite pipe at its 100% owned Chidliak project on Baffin Island, and they were good. Very good.
Here’s the news release.
Batch C returned a grade of 2.87 carats per tonne, including an 8.87-carat white/colourless octahedron, 42 diamonds one carat or larger and 133 diamonds more than .5 carats. The company also used the “y word” for the first time (as far as I know), with 11% of the diamonds in the parcel described by the Saskatchewan Research Council as yellow. Coloured diamonds are rarer and typically worth more than white/colourless diamonds. Another 17% are described as grey and brown, although the smallest diamond in the photo looks quite pink to me.
The grade for the entire 1,124-carat diamond parcel comes in at 2.78 carats per tonne, making CH-6 one of the highest-grade kimberlite pipes in the world, according to the company. (Kennady Diamonds (KDI) has returned higher grades at its Kennady North project in the Northwest Territories, but on much smaller samples.)
The Peregrine diamonds are en route to Antwerp for an independent diamond evaluation by the same company that values diamonds mined at Canada’s four producing operations. Results are expected this quarter.
The stock didn’t move much on the news, closing up 3 cents at 57 cents on the TSX, on volume of about 750,000. However, the stellar grades at CH-6 further de-risk the project, giving Team Friedland more ammunition in its quest to deliver shareholder value. Peregrine CEO Eric Friedland and brother Robert Friedland each own more than 14% of outstanding shares.
Peregrine is shaping up to be an interesting story in a world of few diamond mines and a dearth of high-calibre diamond exploration projects.
Disclosure: I own shares of Peregrine Diamonds. Do your own due diligence.