Today, Peregrine Diamonds completed an acquisition of a land position in Botswana via a small consulting company out of the UK. The acquisition included 3 highly experienced diamond kimberlite experts who probably did not have a lot of work to do. Sounds opportunistic by Peregrine to do this acquisition.
Here is a link to the news release -- Botswana acquisition
This sounds like an asset and team to merge into the newly formed Peregrine Exploration limited.
How will this be funded?
That is a significant question. The warrants exercise is coming up within this next week and could raise up to $15 million in cash.
Eric and Tom have been on the road looking into additional funding for Chidliak.
If Eric and Tom were able to and/or soon to involve a third party to help fund Chidliak proper to production, then that would free up some of the $15 million to support Peregrine Exploration.
If this is the case, then a few million can sent to Peregrine Exploration and it can be spun off into a new entity. Existing Peregrine Diamonds shareholders will receive shares in the spinco and be able to liquidate non-chidliak value if they so choose.
If the plans for funding fall apart, then it does not make a lot of sense to support an overseas project via the Chidliak Treasury. Chidliak still holds all current value for Peregrine Diamond shareholders, and that is with the market valuing Chidliak at a huge discount to NPV.
It seems to be that the events of the last few months, including today, are lining up all the stars (diamonds) and significant events are within a short jump in time.
Next up is the warrant exercise.
Monday, March 30, 2015
Thursday, March 26, 2015
AGM details
Today was the AGM of Peregrine Diamonds.
I may have missed or misinterpreted a fact or two mentioned in the meeting..so please take the following as a recollection of one shareholder. Do not assume all is 100% correct.
A few details came to light at the meeting and also several questions that were sent via email were answered seperately.
First, about the AGM.
The were several of PGD employees and board members in attendance.
Noticeably absent were Tom and Eric.
Brooke was there and lead a presentation following the 2 issue vote and he was accompanied by many other supporting cast.
Including Dr. Pell, Cathy Fitzgerald, Alan O'Connor, 2 Board members, Lacey Kelly, Bev Downing and Bernard (lawyer) I might have missed a couple, but there was plenty of technical staff to answer questions.
Where were Tom and Eric:
The statement made were that they overseas on Peregrine diamonds looking for funding related initiatives. This would be beyond the warrant issue.
Shareholders in attendance.
The author of this blog plus 2 other very grey haired individuals. The tally for the onsite proxy for voting was a total of 1,073,000 shares. that would have been between the three shareholders The one guy was semi retired and originally from the oil and gas sector. He hadn't been to a meeting in a couple of years, but has been a holder of Peregrine for many, many years.
More well known was the other shareholder, Paul who is the CEO of Margaret Lake Diamonds.
If I were to guess at the ownership split amongst the 3.it would roughly work out to a 1/3rd, 1/3rd, 1/3rd...which is pretty close to the average of stockouse shareholders as well.
Just a guesstimate...but it is probably pretty safe to infer that the CEO of Margaret Lake Diamonds owns a few hundred thousand shares of Peregrine Diamonds.
One other shareholder came much later (missed out on the meeting) and brought his daughter (ie. spring break). They had a good look at the various kimberlite samples int eh room.
The Vote:
Vote for the board filling in 7 of the 8 available positions and approving the auditor.
Everyone showed their hands in the room.
Question time:
It asked again about the location of Eric/Tom and mentioned that Robert/Ned were in Hong Kong at the mines and money show. It was re-iterated that Eric/Tom were overseas. I'd assume if anything material comes out of their ventures, we may hear about it in the next 3 to 4 weeks...if anything at all comes from it.
The $2 million flow through will just go to the Chidliak proper as long as it isn't going to the bulk sample itself, it will be fine as per accounting rules.
On the south side of CH-6 where the gravity readings were, it sounds like they have decided it was not kimberlite pulling the readings, but gave some reasonable explanation. They were are still keen on the north end of the CH-6/string of pearls area.
Of note, the preliminary pit shapes on CH-6 on the northside pushes back through into CH-20...so part of CH-20 (pearl) will be mined by default without having to go through a big economic test.
CH-7 is the most diverse as far as geology and is the key driver for the bulk sample program.
They will have the core drill rig on site to try and deepen the inferred at ch-6 to 250 metres and also do significant geotechnical drilling for open pit designs.
The smaller RC drill rig (helicopter) is no longer onsite..concept of that vehicle was to quickly eliminate targets. In the process, they found a lot more kimberlites via the RC rig then they expected.
The core drill rig onsite will now be used on the existing targets that they will want to work on. Not sure when this will happen. Area B is not in focus..yet they didn't seem to rule out work on it. Sounds like they still want to get a handle of it.
With the small RC rig, there is breakage that occurs and different kimberlites do different forms of breakage. It was asked about CH-46 and it seems like the initial caustics would have been the larger micro's being crushed into tiny bits...that is why we are seeing lots of smaller diamonds and not much micros in those results. The core drills are more realistic. Some of the kimberlite RC drilling had very little breakage..so it isn't assumed all the time.
Bulk samples should be processed in the third quarter with valuations in late 2015 or very early 2016.
Probably expect a vast array of diamond photos this fall.
CH-6 was iterated that it is open at depth and is potential for underground in the future...but that is not the priority right now to firm that.
It was confirmed that going from inferred resource to indicated is a matter of a bit more information for the modeling itself and isn't nearly an arduous task as it would be to do a lot of infill drilling a narrow vein gold deposit. The agreement in the room seemed to indicate that going from inferred to indicated in a diamond kimberlite deposit is a lot easier and cheaper then a lot of other commodities and sectors out there. It was suggested that the investors may not fully understand this. As far as Peregrine Diamonds is concerned going from TFFE to Inferred does require the valuation work to be done. This isn't always the case, but it is the more conservative approach.
Meeting was adjourned and a token Peregrine Diamonds hat was offered.
A couple more items that were mentioned:
Depending on the kimberlite, the heli RC rig created a lot of breakage..so larger stones were turned into several smaller stones. It was kimberlite dependent on how much breakage occurred. With the much larger LDD RC unit, there will be significant less breakage as it is going to bring up more chunkier rock up the middle of the unit.
Also, on the 0.85 mm and 1.18 mm sieve size, Peregrine is more focused on the 1.18 mm knowing that they are pushing toward a production plan as opposed to exploration plan and in a production scenario the bottom sieve can actually be 1.5 mm.
A couple more items were also mentioned in relation to DO-27 pipe.
The Jay pipe is seriously going to be considered for mining has raised the potential to change the seasonal road into all year road and there is also consideration for sending power up that road as well. Both big boons for DO-27.
I may have missed or misinterpreted a fact or two mentioned in the meeting..so please take the following as a recollection of one shareholder. Do not assume all is 100% correct.
A few details came to light at the meeting and also several questions that were sent via email were answered seperately.
First, about the AGM.
The were several of PGD employees and board members in attendance.
Noticeably absent were Tom and Eric.
Brooke was there and lead a presentation following the 2 issue vote and he was accompanied by many other supporting cast.
Including Dr. Pell, Cathy Fitzgerald, Alan O'Connor, 2 Board members, Lacey Kelly, Bev Downing and Bernard (lawyer) I might have missed a couple, but there was plenty of technical staff to answer questions.
Where were Tom and Eric:
The statement made were that they overseas on Peregrine diamonds looking for funding related initiatives. This would be beyond the warrant issue.
Shareholders in attendance.
The author of this blog plus 2 other very grey haired individuals. The tally for the onsite proxy for voting was a total of 1,073,000 shares. that would have been between the three shareholders The one guy was semi retired and originally from the oil and gas sector. He hadn't been to a meeting in a couple of years, but has been a holder of Peregrine for many, many years.
More well known was the other shareholder, Paul who is the CEO of Margaret Lake Diamonds.
If I were to guess at the ownership split amongst the 3.it would roughly work out to a 1/3rd, 1/3rd, 1/3rd...which is pretty close to the average of stockouse shareholders as well.
Just a guesstimate...but it is probably pretty safe to infer that the CEO of Margaret Lake Diamonds owns a few hundred thousand shares of Peregrine Diamonds.
One other shareholder came much later (missed out on the meeting) and brought his daughter (ie. spring break). They had a good look at the various kimberlite samples int eh room.
The Vote:
Vote for the board filling in 7 of the 8 available positions and approving the auditor.
Everyone showed their hands in the room.
Question time:
It asked again about the location of Eric/Tom and mentioned that Robert/Ned were in Hong Kong at the mines and money show. It was re-iterated that Eric/Tom were overseas. I'd assume if anything material comes out of their ventures, we may hear about it in the next 3 to 4 weeks...if anything at all comes from it.
The $2 million flow through will just go to the Chidliak proper as long as it isn't going to the bulk sample itself, it will be fine as per accounting rules.
On the south side of CH-6 where the gravity readings were, it sounds like they have decided it was not kimberlite pulling the readings, but gave some reasonable explanation. They were are still keen on the north end of the CH-6/string of pearls area.
Of note, the preliminary pit shapes on CH-6 on the northside pushes back through into CH-20...so part of CH-20 (pearl) will be mined by default without having to go through a big economic test.
CH-7 is the most diverse as far as geology and is the key driver for the bulk sample program.
They will have the core drill rig on site to try and deepen the inferred at ch-6 to 250 metres and also do significant geotechnical drilling for open pit designs.
The smaller RC drill rig (helicopter) is no longer onsite..concept of that vehicle was to quickly eliminate targets. In the process, they found a lot more kimberlites via the RC rig then they expected.
The core drill rig onsite will now be used on the existing targets that they will want to work on. Not sure when this will happen. Area B is not in focus..yet they didn't seem to rule out work on it. Sounds like they still want to get a handle of it.
With the small RC rig, there is breakage that occurs and different kimberlites do different forms of breakage. It was asked about CH-46 and it seems like the initial caustics would have been the larger micro's being crushed into tiny bits...that is why we are seeing lots of smaller diamonds and not much micros in those results. The core drills are more realistic. Some of the kimberlite RC drilling had very little breakage..so it isn't assumed all the time.
Bulk samples should be processed in the third quarter with valuations in late 2015 or very early 2016.
Probably expect a vast array of diamond photos this fall.
CH-6 was iterated that it is open at depth and is potential for underground in the future...but that is not the priority right now to firm that.
It was confirmed that going from inferred resource to indicated is a matter of a bit more information for the modeling itself and isn't nearly an arduous task as it would be to do a lot of infill drilling a narrow vein gold deposit. The agreement in the room seemed to indicate that going from inferred to indicated in a diamond kimberlite deposit is a lot easier and cheaper then a lot of other commodities and sectors out there. It was suggested that the investors may not fully understand this. As far as Peregrine Diamonds is concerned going from TFFE to Inferred does require the valuation work to be done. This isn't always the case, but it is the more conservative approach.
Meeting was adjourned and a token Peregrine Diamonds hat was offered.
A couple more items that were mentioned:
Depending on the kimberlite, the heli RC rig created a lot of breakage..so larger stones were turned into several smaller stones. It was kimberlite dependent on how much breakage occurred. With the much larger LDD RC unit, there will be significant less breakage as it is going to bring up more chunkier rock up the middle of the unit.
Also, on the 0.85 mm and 1.18 mm sieve size, Peregrine is more focused on the 1.18 mm knowing that they are pushing toward a production plan as opposed to exploration plan and in a production scenario the bottom sieve can actually be 1.5 mm.
A couple more items were also mentioned in relation to DO-27 pipe.
The Jay pipe is seriously going to be considered for mining has raised the potential to change the seasonal road into all year road and there is also consideration for sending power up that road as well. Both big boons for DO-27.
Wednesday, March 25, 2015
$15 million investment in Chidliak
April 6th is the deadline for the current warrant exercise.
If all warrants are exercised, Peregrine Diamonds will raise CAD$15.1 million
Key investors:
$3,479,128 - Robert Friedland - 16,567,279 warrants
$2,955,462 - Eric Friedland - 14,073,631 warrants
$2,794,994 - Dundee (Ned) - 13,309,495 warrants
represents about 60% of total warrants.
I suspect the Friedland's will participate in the exercise. The current share price is above the strike price of the warrants. I'm a little less sure of Ned's portion as it is not clear where those current warrants are held. (spread out amongst Dundee and Ned).
Look for Peregrine Diamonds to have enough $$'s to get through the bulks sample and a PEA delivered in the first quarter 2016.
If you are looking to invest in Chidliak, please check out this page that tells you how -- How to Invest in Chidliak
If all warrants are exercised, Peregrine Diamonds will raise CAD$15.1 million
Key investors:
$3,479,128 - Robert Friedland - 16,567,279 warrants
$2,955,462 - Eric Friedland - 14,073,631 warrants
$2,794,994 - Dundee (Ned) - 13,309,495 warrants
represents about 60% of total warrants.
I suspect the Friedland's will participate in the exercise. The current share price is above the strike price of the warrants. I'm a little less sure of Ned's portion as it is not clear where those current warrants are held. (spread out amongst Dundee and Ned).
Look for Peregrine Diamonds to have enough $$'s to get through the bulks sample and a PEA delivered in the first quarter 2016.
If you are looking to invest in Chidliak, please check out this page that tells you how -- How to Invest in Chidliak
Tuesday, March 24, 2015
Peregrine Exploration update
Peregrine Diamonds just announced that they are starting to spin non-chidliak assets directly into the subsidiary called Peregrine Exploration Ltd.
Here is the official news release -- Asset move
Of particular note is focus on DO-27 kimberlite in the Lac De Gras area.
3 things stand out in this news release:
1:
"The range of diamond values determined for a 2,075 carat parcel from DO-27 in 2007 was US$43 to US$70 per carat, with a base case of US$51 per carat. WWW International Diamond Consultants who performed the DO-27 valuation, advised Peregrine Exploration this month that diamond prices have increased an average of 65 percent since then, with increases ranging from 50 to over 70 percent depending on diamond quality and size, and that current DO-27 prices are expected to be within that range."
With the CDN $ tanking as well, this is very positive news for potential economics at DO-27
2:
"Approximately 20 tonnes of kimberlite drill core recovered from DO-27 during the 2007 resource development program is stored in Yellowknife and available for processing to assess the diamond grade in certain parts of the kimberlite and further evaluate potential future commercial processing options."
They can spend a few extra dollars to gain even more information on the project.
3:
"In 2015, the Northwest Territories Geoscience Office ("NTGO") is conducting a surficial mapping and kimberlite indicator mineral study in the Lac de Gras region. Approximately 50 small diameter reverse circulation ("RC") holes are scheduled to be completed on Peregrine Exploration mining leases. Results from the NTGO program, expected by year-end, are expected to assist Peregrine Exploration in defining new kimberlite targets on its claim block."
Peregrine Exploration will be getting some free grassroots geology related work done on its current leases.
Peregrine's mgmt team is focused on Chidliak, but having some progress at a very inexpensive cost on another project is not bad.
Peregrine has had a way of getting work done without there money. BHP spent a significant $$'s on Chidliak, De Beers spent a few million on Chidliak and various geoscience government agencies have some $$'s on Peregrine's properties.
Here is the official news release -- Asset move
Of particular note is focus on DO-27 kimberlite in the Lac De Gras area.
3 things stand out in this news release:
1:
"The range of diamond values determined for a 2,075 carat parcel from DO-27 in 2007 was US$43 to US$70 per carat, with a base case of US$51 per carat. WWW International Diamond Consultants who performed the DO-27 valuation, advised Peregrine Exploration this month that diamond prices have increased an average of 65 percent since then, with increases ranging from 50 to over 70 percent depending on diamond quality and size, and that current DO-27 prices are expected to be within that range."
With the CDN $ tanking as well, this is very positive news for potential economics at DO-27
2:
"Approximately 20 tonnes of kimberlite drill core recovered from DO-27 during the 2007 resource development program is stored in Yellowknife and available for processing to assess the diamond grade in certain parts of the kimberlite and further evaluate potential future commercial processing options."
They can spend a few extra dollars to gain even more information on the project.
3:
"In 2015, the Northwest Territories Geoscience Office ("NTGO") is conducting a surficial mapping and kimberlite indicator mineral study in the Lac de Gras region. Approximately 50 small diameter reverse circulation ("RC") holes are scheduled to be completed on Peregrine Exploration mining leases. Results from the NTGO program, expected by year-end, are expected to assist Peregrine Exploration in defining new kimberlite targets on its claim block."
Peregrine Exploration will be getting some free grassroots geology related work done on its current leases.
Peregrine's mgmt team is focused on Chidliak, but having some progress at a very inexpensive cost on another project is not bad.
Peregrine has had a way of getting work done without there money. BHP spent a significant $$'s on Chidliak, De Beers spent a few million on Chidliak and various geoscience government agencies have some $$'s on Peregrine's properties.
Tuesday, March 10, 2015
Significant CH7 results
New press release today with new caustics and a new area within CH-7 kimberlite.
Here is the link -- Press Release
The new domained area within ch-7 has an outstanding stone count of 5.7 stones/kg and a preliminary grade of 4 CPT.
This will again, add significant ROR and quicker payback just like CH-6 kimberlite will do.
This is great news for Chidliak.
Compare the best hole in this new result @ 6.3 stones per kg and compare it to the CH6A hole from September 21, 2009 that also came in at 6.3 stones per kg. I've adjusted for size comparison
This new CH-7 hole may take the record on a population curve for all of Chidliak.
Mr. Eric (2009) says:
"We believe these microdiamond counts from CH-6 are some of the best results in the history of Canadian diamond exploration and a testament to the outstanding potential of Chidliak"
Mr. Tom (2015) says:
"The new results from CH-7 define a previously unknown geological domain that has the potential to exceed the resource grade of 2.58 carats per tonne ("cpt") established at CH-6."
That pretty much sums it up.
Here is the link -- Press Release
The new domained area within ch-7 has an outstanding stone count of 5.7 stones/kg and a preliminary grade of 4 CPT.
This will again, add significant ROR and quicker payback just like CH-6 kimberlite will do.
This is great news for Chidliak.
Compare the best hole in this new result @ 6.3 stones per kg and compare it to the CH6A hole from September 21, 2009 that also came in at 6.3 stones per kg. I've adjusted for size comparison
This new CH-7 hole may take the record on a population curve for all of Chidliak.
Mr. Eric (2009) says:
"We believe these microdiamond counts from CH-6 are some of the best results in the history of Canadian diamond exploration and a testament to the outstanding potential of Chidliak"
Mr. Tom (2015) says:
"The new results from CH-7 define a previously unknown geological domain that has the potential to exceed the resource grade of 2.58 carats per tonne ("cpt") established at CH-6."
That pretty much sums it up.
Friday, March 6, 2015
Chow Tai Fook possible interest in Chidliak?
Update - Sept 4th, 2015
Read this article that just came out --> Journey of the Heritage Diamond
It is quite obvious how deep Chow Tai Fook's pockets actually are.
They have invested $35.3 million in a single diamond and put time and effort into to create a $200 million masterpiece with no plans of selling it.
---------------------------------------------------------------------------------------
It is not too hard to put two and two together.
John Kaiser mentions in his latest video from PDAC 2015 that there is possibility of a jewellery company taking a minority interest in the Chidliak project.
Check out Kaiser's Chidliak related info (included recent video) here -- John Kaiser and Chidliak
Unrelated to Kaiser, there have been murmurings in the social world that the company in question is Chow Tai Fook.
Here is an article from a few months ago that puts Chow Tai Fook on an aggressive stand for investing in Canadian projects -- Chow Tai Fook
Talks about how they want to invest in projects and much prefer a destination like Canada over Africa.
I believe since this article has been published there has no official moves on behave of Chow Tai Fook into the Canadian market and I believe any current discussions would be going on behind closed doors.
Peregrine Diamonds not only owns 100% of Chidliak, it also has, up to now, held onto 100% marketing rights for all Chidliak production....so Chidliak and Peregrine Diamonds would be in negotiation position with a company like Chow Tai Fook. They would have a lot to offer.
Don't forget , since this article from Chow Tai Fook, Peregrine Diamonds has made a strategic reorganization move that isolated Chidliak from the rest of Peregrine Diamonds.
Here is a link to that article -- Peregrine Reorganization
Either these are all just murmurs or the stars are finally starting to line up for Chidliak.
Robert Friedland and Ned Goodman were at the Mines and Money show in Hong Kong.
Possibly Eric and Tom were also attending that event as well. (confirmed overseas, final location - unconfirmed).
Read this article that just came out --> Journey of the Heritage Diamond
It is quite obvious how deep Chow Tai Fook's pockets actually are.
They have invested $35.3 million in a single diamond and put time and effort into to create a $200 million masterpiece with no plans of selling it.
---------------------------------------------------------------------------------------
It is not too hard to put two and two together.
John Kaiser mentions in his latest video from PDAC 2015 that there is possibility of a jewellery company taking a minority interest in the Chidliak project.
Check out Kaiser's Chidliak related info (included recent video) here -- John Kaiser and Chidliak
Unrelated to Kaiser, there have been murmurings in the social world that the company in question is Chow Tai Fook.
Here is an article from a few months ago that puts Chow Tai Fook on an aggressive stand for investing in Canadian projects -- Chow Tai Fook
Talks about how they want to invest in projects and much prefer a destination like Canada over Africa.
I believe since this article has been published there has no official moves on behave of Chow Tai Fook into the Canadian market and I believe any current discussions would be going on behind closed doors.
Peregrine Diamonds not only owns 100% of Chidliak, it also has, up to now, held onto 100% marketing rights for all Chidliak production....so Chidliak and Peregrine Diamonds would be in negotiation position with a company like Chow Tai Fook. They would have a lot to offer.
Don't forget , since this article from Chow Tai Fook, Peregrine Diamonds has made a strategic reorganization move that isolated Chidliak from the rest of Peregrine Diamonds.
Here is a link to that article -- Peregrine Reorganization
Either these are all just murmurs or the stars are finally starting to line up for Chidliak.
Robert Friedland and Ned Goodman were at the Mines and Money show in Hong Kong.
Possibly Eric and Tom were also attending that event as well. (confirmed overseas, final location - unconfirmed).
Sunday, March 1, 2015
Stockhouse investors own 13% of public float - Peregrine Diamonds - Chidliak
The most active forum for Peregrine diamond's investors is the stockhouse forum.
Forum -- Peregrine Diamonds Forum
I've been posting to it for many years and every year, we see more and more regular participants.
A recent survey has indicated that the 20+ regular's on the Peregrine Forum own about 13% of the public float for Peregrine Diamonds.
Here is the ownership breakdown -- Peregrine Diamonds Ownership
Including SH investors, there is a public float of about 90 million shares with SH investors owning 11.8 million of those shares.
this works out to roughly 13% of that share.
We all know the Friedland's and Ned own a big chunk of the company, but it is amazing how a small group of investors can still own a significant part of the retail/institutional pool available to the public.
Majority of those SH investors have been accumulating over time and that means less shares available for the public going forward.
Forum -- Peregrine Diamonds Forum
I've been posting to it for many years and every year, we see more and more regular participants.
A recent survey has indicated that the 20+ regular's on the Peregrine Forum own about 13% of the public float for Peregrine Diamonds.
Here is the ownership breakdown -- Peregrine Diamonds Ownership
Including SH investors, there is a public float of about 90 million shares with SH investors owning 11.8 million of those shares.
this works out to roughly 13% of that share.
We all know the Friedland's and Ned own a big chunk of the company, but it is amazing how a small group of investors can still own a significant part of the retail/institutional pool available to the public.
Majority of those SH investors have been accumulating over time and that means less shares available for the public going forward.
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