For thousands of other reports visit RSC's Mineral Intellingence Map
Peregrine Diamonds Ltd.
Summary
| Project: | Chidliak | |
|---|---|---|
| Deposit: | Chidliak | |
| Location: | Canada | |
| Commodities: | Diamonds | |
| Date: | 5/23/2018 | |
| Report Code: | NI43-101 | |
| Report Type: | PEA | |
| Project Stage: | Pursuing Pre-Feasibility Study | |
| Report details: | 23-5-2018: Peregrine Diamonds Ltd. announces a PEA report for its Chidliak deposit at the Chidliak project. PEA results incl. post-tax NPV of US $679M (7.5%), IRR 31.1%, and 13 yr LOM at the project. Vancouver, Canada – Peregrine Diamonds Ltd. (TSX:PGD) ( | |
| Resources: | (Resource, Inf.): 12.45Mt @ 1.86cpt for 22.2M carats contained at Chidliak | |
| CP/QP: | [Resources]: Catherine Fitzgerald, Hermanus Grutter (Internal) | |
| ABSTRACT: | Vancouver, Canada – Peregrine Diamonds Ltd. (TSX:PGD) (“Peregrine” or the “Company”) is very pleased to announce the positive outcome of an updated independent Preliminary Economic Assessment (“PEA”) for the Chidliak Phase One Diamond Development (“CP1D”) incorporating the 2018 expanded diamond resource at the CH-6 and CH-7 kimberlite pipes on the Company’s 100%-owned Chidliak Diamond Project on Baffin Island, Nunavut, Canada. The updated PEA highlights that the CP1D represents a robust, high margin, open-pit mining project with very attractive economics. At Chidliak, the Company has discovered 74 kimberlites to date, with eight having been identified as potentially economic through drilling and microdiamond analysis, while other kimberlite pipes require additional work to determine their economic potential. The Company owns all of the diamond marketing and sales rights and there are no non-government royalties or other encumbrances on diamond production. The updated PEA the Company is announcing today utilizes the expanded Chidliak Inferred Mineral Resource that was announced on February 15, 2018. Highlights of this expanded resource include: The updated PEA envisages a mine life of approximately 13 years, producing from an open pit at the CH-6 kimberlite pipe for nine years, followed by production via an open pit at the CH-7 kimberlite. The resources at both CH-6 and CH-7 remain open at depth, representing significant expansion opportunities which have not been included in this current economic study. The PEA was prepared by JDS Energy & Mining Inc. (“JDS”), independent consulting engineers based in Vancouver, Canada. The JDS team has a long history of northern Canadian diamond project experience, including the construction of the Gahcho Kué diamond mine, in the Northwest Territories, Canada. The Base Case Net Present Value (“NPV”) reported above uses a discount rate of 7.5% and an annual diamond price escalation of 1.75%, down from the 2.5% used in the Company’s 2016 PEA, also prepared by 2 JDS,reflecting current softer rough diamond markets which are currently showing signs of strengthening. With a 2.5% escalation rate consistent with the 2016 PEA base case, the After-tax NPV is $770 million. Table 5 below shows the sensitivity of NPV to the annual diamond price escalation assumption. | |
Full Report
opaxe is a smart software platform that reconfigures and redistributes information and produces business insights to help mining professionals and investors make better decisions. We utilise technology and machine learning for data collection and human intelligence for the value-added services.
Full Report