A recent mineral resource estimate has ended favourably for a CH-6 kimberlite pipe at Peregrine Diamonds’ Nunavut-based Chidliak Diamond Project. Located 120 km (74 mi) from Iqaluit, the project is wholly owned by Peregrine.
The company’s 2017 Resource Development Program revealed an updated inferred mineral resource of 17.96 million carats in 7.46 million tonnes of kimberlite. This is a 61 per cent increase from the previous tonnage of 4.64 million, and a 58 per cent increase from the previous inferred mineral resource of 11.39 million carats.
“Since we announced our maiden inferred resource at CH-6 in May 2014, we have grown this resource by an incredible 140 per cent, from an initial 7.5 million carats to the 18 million carats we are proud to announce today,” said Tom Peregoodoff, the company’s CEO. “The growth of the CH-6 resource is remarkable, and together with the CH-7 kimberlite resource, it brings the Phase One Diamond Development resource at Chidliak to an impressive 22 million carats.”
Based on a 2016 Preliminary Economic Assessment (PEA), the mine is estimated to have a 10-year lifespan with an average annual production rate of 1.2 million carats. A revised PEA is currently being produced by JDS Energy and Mining.
“The PEA we announced in 2016 clearly established Chidliak as a unique diamond development opportunity,” said Peregoodoff. “Today’s announcement of the significant expansion of the diamond resource should have a material, positive impact on the forthcoming economic analysis, and I look forward to sharing the results of the updated Phase One Diamond Development PEA with all of our stakeholders as soon as possible.”
