Friday, May 15, 2015

NPV Update - Chidliak

Peregrine Diamonds is not allowed to release any economic analysis on Chidliak without the resource being moved into inferred and the analysis being completed by an independent 3rd party that has a qualified person to sign off on diamond deposits. This is due to 43-101 requirements.

Based on the information that is known, there are 3 iterations of NPV Calculations on this blog.

NPV #1 - $750 million - Includes only the CH-6 stand alone pit operation.

NPV #2 - $1.5 billion - Includes CH-6,7,44 open pit operations plus a CH-6 underground operation.

NPV #3 - $900 million - Includes CH6 open pit and CH7 open pit.

The third calculation is the most relevant at this stage as the company will be producing a PEA (preliminary economic assessment) on the NPV #3 scenario and that will be available in early 2016.

The information being obtained this year is the valuation model for CH-7. As you you can see by the comparisons between NPV #1 and NPV #3, the increase in NPV based on those valuations could upwards of $150 to $250 million. If valuations per carat exceed CH-7, you will get even more increase in NPV.

The biggest benefactor to Chidliak is the fact that the high grade near surface rock from CH-6 can easily be put in the front of the Mine Schedule and it will be. Then you will mine the next highest grade rock (CH-7 Domain 5) before moving on. Scheduling and optimizing of the pits at Chidliak is going to be very easy and very NPV friendly.

1 comment:

  1. MIke thanks thanks for all the work as always.