Bulk sampling at Peregrine Diamonds’ Chidliak project has been completed, the company announced.
A larger parcel of rough is expected from the CH-6 kimberlite, which will provide higher confidence in future diamond valuations. Although 200 tonnes were forecast to be extracted, Peregrine said it had exceeded that by 308 wet tonnes of kimberlite.
The sample will be shipped from Iqaluit, Nunavut, to be processed later this year. Chidliak is 100 per cent owned by Peregrine, however, De Beers Canada is funding and operating the $2-million summer program.
Chidliak is subject to an option agreement with De Beers, which has the exclusive right until Dec. 31, 2013 to enter into an earn-in and joint venture agreement for the project on a 50.1 per cent De Beers/49.9 per cent Peregrine basis. If De Beers does not enter into the joint venture, Peregrine will have no obligation to refund the $6.3 million the company has spent on Chidliak.
“We are pleased to have collected this substantial bulk sample at CH-6 and to have finalized the summer 2013 work program with De Beers,” said company president, Brooke Clements.
“Transitioning of operatorship to De Beers for this program is well advanced and I am confident De Beers will advance Chidliak with the technical and operational excellence for which it is renowned. The combination of the Peregrine and De Beers’ technical teams is already yielding considerable benefits for the project and we look forward to additional kimberlite discoveries this summer and to the results of the CH-6 bulk sample.”
