CH20 Kimberlite (PHASE 1)

CH-20 Kimberlite
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Update August, 2016

PEA Technical report -- Aug 18 2016 PDF
(Page 16-2)

In this image below, it is clearly shown that the top portion of CH-20 kimberlite is excavated in the PEA (preliminary economic assessment) of the CH-6 and CH-7 Phase 1 mine plan.
Tonnage for CH-20 is deemed waste at this point as is the KIM-C material from CH-6.
Both of these items have significant diamonds in them and will be processed through the mill.
It is just a question of how much and what value per tonne they hold.


The image below shows the CH-20 on the left hand side. It is clearly shown to be within the pit walls and is also open at depth. 


This also clearly shows how close the first pearl is to CH-6 and the other 2 or 3 pearls plus a dyke are not that far away either. It is clear that any underground at CH-6 would easily get material out of the pearls as well.

This image above also gives a sneak peek at the RQD factor. One of the key features used  determining geotechnical factors of safety. Most of those drillholes are within the kimberlite itself. More geotechnical information outside of the pipe is needed to adjust the pit angles.

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This kimberlite was first discovered in July 19, 2010 -- ch20 press release

It makes up part of the string of pearls in line from CH-6.
CH-20 is the first of those pearls and will actually be mined as part of the planned open pit of CH-6. CH-6 north wall will break right into CH-20.

Here are some details:

"The CH-20 kimberlite was discovered by drilling an inclined hole across a magnetic anomaly with an approximate surface diameter of 50 metres.  CH-20 is located approximately 100 metres north of the CH-6 kimberlite and 250 metres south of the CH-10 kimberlite, and, along with CH-10, is one of four magnetic anomalies referred to as the String of Pearls that are aligned along a 600 metre trend in a north-northwest direction from CH-6.  The kimberlite at CH-20 is described as being olivine-rich black macrocrystic kimberlite similar to that present at CH-6 and CH-10.  The String of Pearls and associated magnetic low anomalies located several hundred metres to the east, present the opportunity to discover significant kimberlite tonnage in the vicinity of CH-6.  Further exploration in the String of Pearls area is likely, after receipt of results from the CH-6 mini-bulk sample. "

Peregrine put one -50 degree core drill hole into this kimberlite.
It hit 13 metres of overburden before hitting country rock
Then it hit kimberlite from 23 metres to 44 metres. For an intercept of 21 metres.

Caustic results were announced in Feb. 2011 -- Caustic Results

For an image of CH-20 (page 3) -- string of pearls image

This will probably get some more work done as they get closer to putting a pit on CH-6. So they can ideally map the north wall and and bench/blast pattern. This material will be mined and either stock piled or put directly through the mill. It has an excellent population curve and there is no reason to think it will be significantly different then all the pearls including ch-6.

The question then becomes, how much tonnage is actually here?
The geophysics show upwards of 50 m x 60 m.
Down to 250 metres it would become 0.75 million cubic metres
Given a density of 2.5 g/cm3, the tonnage would be 1.8 million tonnes
The near surface core drillhole shows a much smaller intercept then the geophysics...so a bit more drilling is needed to determine area as the kimberlite gets deeper.

Conservatively, 1 million tonnes.

In an open pit scenario, this could add $500 million to the insitu value.
In an underground scenario, you could add another $500 million.

The above is using rock value and grade similar to CH-6.

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