Peregrine Diamonds (TSX: PGD) and Dominion Diamond (TSX: DDC) Weigh Their Optimism Carat by Carat

Greg Klein | March 15, 2016 | ResourceClips.com: Maybe this time this Friedland will get it right. His older brother Robert’s first foray into diamond exploration was, from the gemstone perspective, a monumental flop. Sure, the company stumbled on enough nickel, cobalt and copper to get a nice little $4.3-billion consolation prize for Voisey’s Bay. But as for finding and building a diamond mine, that might be up to younger brother Eric. He evidently sees an optimistic, fast-paced scenario for Peregrine Diamonds’ (TSX: PGD) Chidliak project in Nunavut.

PGD logoIronically, given the outcome of Friedland the elder’s search for Labrador diamonds, mineral exploration in the Chidliak area seems to have started with another company’s 1996-to-1997 search for a Voisey’s Bay-type deposit. But little else happened until 2005, when Peregrine and BHP Billiton Canada began regional reconnaissance.

Now 100% owner Peregrine continues to advance, announcing on March 8 a diamond valuation for Chidliak’s CH-7 kimberlite, which has a maiden resource slated for later this month. The project’s more advanced CH-6 pipe has an update underway for a resource that currently shows an inferred 3.32 million tonnes averaging 2.58 carats per tonne for 8.57 million carats.

The evaluation for CH-7’s 735.75-carat parcel came to a current average price of $100 per carat but a base modelled average of $114 per carat. The Antwerp firm takes into consideration diamonds lost by breakage, using proprietary techniques to forecast average prices that could be achieved through actual production.

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