March 2016 Update -- Valuation results have finally arrived.
Here is the link to the news release -- March 8th 2016.
The appraised value (as-is) came in at US$100 per carat and that is considering that up to 80% of the diamonds had some breakage occurring and 10 to 40% of gem quality stones did not even make it to the appraisal because they broke into little tiny pieces. That value is a significant achievement inclusive of all those challenges. If the parcel had not rec'd significant breakage, the valuation 'as-is' would have been significantly higher.
The model did take the breakage into account and it came up with a base case of US$114/carat that is being recommended to use in the upcoming PEA (preliminary economic assessment).
The upside on the model is also very significant as indicated by this independent statement:
Mr. Neil Buxton, responsible for geostatistical modelling at WWW stated "based on our analysis of the parcel, WWW believes that if CH-7 were in production in the current diamond market, it is unlikely that the average price would be lower than the low average modelled price. It is equally important to understand that the high average modelled price does not represent a maximum price and that the ultimate diamond price could be higher than US$155 per carat. These results need to be confirmed with a larger sample."
Remember, these are all in $US and the Canadian dollar conversion leads to a base case of CAD$152/carat and a high value of CAD$206/carat that could even go higher.
This significant news confirms that CH-7 will have a very reasonable profit margin to be included in the PEA with no real concerns.
November 2015 Update - Bulk sample has arrived at the SRC and is Domain's 3,4,5 have already been through the DMS unit and are now in the diamond recovery stage. There is good potential for one or more of these results to be a news item in December with diamond photos. Domain 2 is still going through the DMS unit and is the largest sample...so it might be there for a while.
Here is a small assortment of diamonds from CH-7:
Here are some photos of diamonds from Domain 1:
Here is the one photo from Domain 5:
July 2015 Update - Bulk sample of 558 tonnes (already sieved to 1.18 mm) is sitting in Iqaluit waiting for a sealift to send it to the SRC. In addition, the field program has been announced and 3 vertical core drillholes will be done 220 metres deep in the southern part of CH-7 (mostly Domain 2). They are also taking 1200 kg's of selected samples from 11 previous core holes to process and add to the model. All this work is done to maximize the conversion of TFFE to a maiden Inferred resource in conjunction with a valuation model.
Update - New Zone in CH7 will bring up the Grade from 1.04 cpt to a higher value.
Indicated grade in the new zone is 4 cpt and it depends on how much of the new zone versus the rest of the kimberlite to figure out the new grade.
The new results are absolute value added to the whole Chidliak project.
See here for more information on those results -- ch7 new results
CH7 is the second best Kimberlite as part of Chidliak.
There will be bulk sampling in March to determine a value per carat of the diamonds.
To date, the grade has been 1.04 cpt
Anything above $100 per carat should make this profitable material.
Here is a 3D Image of CH7 before the last update --> 3D PDF - CH7
Will be updated as we get new images from the company.
CH7 has an updated TFFE from the last technical report.
The numbers are as follows:
3,720,000 to 6,010,000 to a depth of 290 metres below surface.
@ 1.04 cpt, and potentially similar valuation to CH-6, that would give a potential of CAD$1.5 billion in the top 300 metres of this pipe.
Valuations need to be confirmed and an LDD unit is onsite drilling into CH-7 shortly.
Valuations will not be known until early 2016. We may see photos of ch7 diamonds in late 2015.
The photos of page 3 on this presentation -- exploration update clearly show the quality of diamonds that the 50 tonne mini bulk on CH-7 has produced.
The 250+ tonne bulk sample from this year should be produce a nice population of clear gem quality diamonds and should lead well into the valuation task.