Upside Down

Upside Down

What is known #1:

Quote from Neil Buxton on CH-6. Neil is an independent expert with WWW International Diamond Consultants Ltd.

"It is also important to understand that the high modelled price does not represent a maximum price and that the ultimate average diamond price in a mine production scenario could be higher than US$236 per carat. Given the number of large stones in this parcel, and their relatively high value, even the high modelled price may be considered conservative."

What is known #2:

Drilling in 2017 delineated the high-grade CH-6 kimberlite pipe to a depth of 540 metres below surface (mbs) and the kimberlite remains open below that depth.

What is known #3:

17.96 million carats inferred from surface down to 525 mbs (metres below surface).

What is known #4:

CH-6 is a steeply dipping pipe.

What is known #5:

Quote from Tom Peregoodoff, CEO of Peregrine Diamonds Ltd.

"Simply put, there is no other Canadian development-stage diamond project that compares with Peregrine's flagship project in terms of resource value or upside potential."

--------------------------------------------------------------------------------------------

Interpretation?

The current pipe down to 525 mbs has around 18 million carats that could be worth north of US$236 per carat in a production setting and this project has a lot of upside left into it...not withstanding the open below depth stigma is still attached and no indications that the pipe won't just continue deep into the earth as uncovered to date.

So...the answer then is that the upside potential is really down. Deep down into the earth where the rock value will continue until it doesn't.

If this pipe goes down to 1500 metres with the steeply dipping pipe walls, it could generate 50 million carats of diamonds potentially worth more than US$236 per carat.

That number is around US$12 billion or CAD$15 billion.

The stock is currently trading at US$45 million or CAD$60 million.

This truly indicates that not only is the upside potential down...the valuation argument for Chidliak and Peregrine Diamonds is truly upside down.

PDAC 2018 - Diamonds

PDAC - 2018 - Diamonds

Another year at PDAC and Diamonds will be one of the main topics of discussion on Monday, March 5th.

PDAC General links -- www.pdac.ca/ - @the_PDAC - #PDAC2018

Technical Program

The 25th anniversary of Canadian diamond mining: The next generation - Link to Agenda

Location: Room 716
Time - Monday, March 5th - 2:00 pm to 4:30 pm
co-Chairs - Jennifer Pell (Peregrine Diamonds) and Patricia Sheahan (Consultant)

Session one: 2:00 to 2:25 pm
Title - Stornoway's Renard Mine: Lessons learned from the financing, construction and mining at Quebec's first diamond producer
Speaker - Matt Manson, Stornoway Diamond Corporation

Session two: 2:25 to 2:50 pm
Title - Further development of the Chidliak diamond resource, Nunavut, Canada
Speaker - Tom Peregoodoff, Peregrine Diamonds Ltd.

Session three: 2:50 to 3:15 pm
Title - Star and Orion South: Huge kimberlites with large stone potential
Speaker - George Read, Shore Gold Inc.

Session four: 3:15 to 3:40 pm
Title - How we built the largest new diamond mine in the world
Speakers - Allan Rodel & David Whittle, De Beers Group of Companies, Mountain Province Diamonds Inc.

Session five: 3:40 to 4:05 pm
Title - Operational evolution of the Ekati Diamond Mine
Speaker - Chantal Lavoie, Dominion Diamond Corporation

Session six: 4:05 to 4:30 pm
Title - The Diavik Diamond Mine a 20+ Year, Tier 1 Operation
Speaker - Andy Davy, Rio Tinto Diamonds

Corporate Presentation Forum for Investors -- Diamonds

Location - Room 801B
Chair - Geordie Mark, Haywood Securities
Time - Monday, March 5th - 10:00 AM to 11:30 AM
Link to agenda

10:00 to 10:15 am - Diamcor Mining Inc. - Dean Taylor
10:15 to 10:30 am - Lucara Diamond Corp. - Dr. John Armstrong
10:30 to 10:45 am - North Arrow Minerals - Ken Armstrong
10:45 to 11:00 am - Peregrine Diamonds - Tom Peregoodoff
11:00 to 11:15 am - Stornoway Diamond Corporation - Matt Manson
11:15 to 11:30 am - Talmora Diamond Inc. - Alan Davies

Booths

Altius Minerals Corp.  - Booth #2435
Anglo American - Booth #2325
Arctic Star Exploration - Booth #2103
CanAlaska Uranium Ltd. - Booth #2140
Diamcor Mining Inc. - Booth #2316
Fivestar Diamond Limited - Booth #3230
Lundin Group of Companies - Booth #2515
North Arrow Minerals Inc. - Booth #2707
Olivut Resources Ltd. - Booth #2419A (2 days only)
Osisko Gold Royalties Ltd. - Booth #2640
Peregrine Diamonds Ltd. - Booth #2217A (2 days only)
Rio Tinto - Booth #2100
Shore Gold Inc. - Booth #2330
Talmora Diamond Inc. - Booth #2423B (2 days only)

PDAC list by commodity - Diamonds

Company Website and Twitter handles

Arctic Star Exploration Corp. - www.arcticstar.ca - @ArcticStarExpl
Anglo American - www.angloamerican.com - @AngloAmerican
Diamcor Mining Inc. - www.diamcormining.com
Lundin Group of Companies - www.thelundingroup.com - @LucaraDiamond
North Arrow Minerals Inc. -  www.northarrowminerals.com - @NARminerals
Olivut Resources Ltd. - www.olivut.com
Peregrine Diamonds - www.pdiam.com - @Peregrine_PGD
Shore Gold Inc. - www.shoregold.com
Stornoway Diamond Corporation - www.stornowaydiamonds.com - @SWYDiamonds
Talmora Diamond Inc. - www.talmoradiamond.com