Saturday, February 28, 2015

Peregrine Diamonds Rights offering share turnover

The rights offering for Peregrine Diamonds expired on October 8th, 2014.

Since then, we have seen 32,612,076 shares trade hands (to Mar 6th, 2015).

I have estimated ownership of Peregrine Diamonds to come out with a public float.
Here are the details -- Peregrine Diamonds Ownership

The public float is calculated as 79.33 million shares.
Somewhere in here includes Kaiser's ownership, but I have no idea how many he may hold...so I will leave his shares in.

What we can infer from this is that 41.1% of shares of the public float have changed hands since the rights offering expired.

This 39.9% occurred at an average price of CAD$0.17

This is a significant number that has moved from weak hands to strong hands.

Technicals are turning up and Chidliak has excellent fundamentals.

Wednesday, February 25, 2015

CH-6 Kimberlite - Video - 120 metres

Here is a quick video of a wireframe I constructed based on the image given in the technical report.
This is the surface to 120 metre section of CH-6.


I've also created a 3D PDF that you can rotate the wireframe yourself.
You can need to save this locally before opening -- 3D PDF - CH6

Enjoy...ps...sorry for the background audio noise...not in an ideal recording environment.

Chidliak - CH6 - Diamond Valuation Update - up/down 6%

From the original press release -- CH6 Maiden Valuation

We get the following:

"The average price was US$213 per carat and the entire parcel was valued at US$215,605. The modelled price ranged from a minimum of US$162 per carat to a high of US$236 per carat with a base case modelled price of US$188 per carat."

We now have an updated Technical report for Chidliak and new information has been provided as follows:

 "In January 2015, Mr. Neil Buxton issued the following statement:

“WWW International Diamond Consultants (WWW) valued the Chidliak diamonds in February 2014, and prices increased steadily through to August 2014 before liquidity concerns in the diamond markets became a reality. This was exacerbated by the Antwerp Diamond Bank (ADB) announcing that it was withdrawing from the diamond business. It is estimated that ADB was financing $1.6bn to the diamond trade or eleven percent of the total $14.5 billion of debt. At the same time wholesale polished diamond prices softened in the last quarter of 2014.  As with other commodities, there is currently a degree of uncertainty in the market and the WWW overall rough price index currently stands 6 percent lower than in February 2014.” "

From the Bank of Canada currency rates -- Bank of Canada Converter

We find the CAD$ was worth .9029 during the initial valuation.
Now it stands at .8052 today.

So, with a bit of calculation.

The Valuation of CH-6 has gone down 6% in US $ terms from US$212/carat to US$200/carat.
In CAD$ terms it has gone from CAD$235/carat to CAD$250/carat

The depreciation in the Canadian dollar outweighs the decrease in international diamond prices.

Result - Valuation of Chidliak is down 6% in US Dollar terms and up 6% in CAD terms




Wednesday, February 18, 2015

PDAC 2015 - Geosoft - Chidliak

Update - June 2015

Geosoft is hosting a similar webinar in the European Timezone

For details and registration --  Geosoft Webinar - June
Wednesday, June 24, 2015
12:00pm - 1:00pm
Central European Summer Time (CEST)
Wednesday, June 24, 2015 
12:00pm - 1:00pm
Central European Summer Time (CEST)
- See more at: http://ww2.geosoft.com/2015.Jun24.Webinar.Constrained.Magnetization.Vector.Inversion.html#sthash.DN9AvH2o.dpuf

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Details from PDAC 2015
Geosoft is presenting an analysis of one of the Chidliak Kimberlites.

This is part of the Explorer Speaker series

Link -- Geosoft Details - PDAC Seminar

Details here for the Chidliak portion:

"Constrained magnetization vector inversion used to improve the geological model of a kimberlite at the Chidliak project, Baffin Island, Canada.

Sean Walker - Senior Geophysicist, Campbell & Walker Geophysics Ltd.

As part of continued subsurface exploration of a sparsely drilled kimberlite with potentially complex internal geology, Peregrine (100% owner of the Chidliak project) commissioned a geophysical investigation by the two senior authors. This talk presents a detailed review of the methodology and results."

Chidliak = Profit Margin

A diamond mine requires 3 key aspects to produce cash flow
1 - Valuation per carat
2 - Grade (how many carats in a tonne)
3 - Operating cost to mine and process 1 tonne.

What is the margin for CH-6 predicted to be.

1 - Valuation = US$213 per carat
2 - Grade = 2.58 cpt (carats per tonne)
3 - Operating cost - Open pit focus = CAD$75 or US$60 per tonne

Profit margin = 213*2.58-60 = US$490 per tonne.

Where does this line up in the world.

Thanks to Mountain Province (MPV) who have recently posted a presentation that lists this out very clearly.

Here is a link to the presentation -- MPV Presentation

Go to Page 5.

Chidliak barely fits on this chart...as the chart tops out at US$500 per tonne puts it well ahead in 1st place.

That is with CH-6.

If CH7 and CH44 come back with comparable valuations as per ch-6, then those would hit 1.04 x 213 - 60 = US$180 per tonne would place those in 3rd or 4th place on that chart.

A lot of mines talk about cpht (carat per hundred tonne). Chidliak has been focused on cpt (carat per tonne) since day 1.

Chidliak is still argumentatively one of the top valued rock in the diamond world and quite possibly the highest margin diamond mine in the world.

Apple Computers and Peregrine Diamonds

What is the connection between Apple Computers and Peregrine Diamonds.

This is quite an interesting blog -- Steve Jobs - Mentors

I did not know that the name of Apple computers came from a visit to the Friedland's farms.

Steve Jobs also had Robert has his first mentor back in the day.


Monday, February 16, 2015

400K Tonnes per year - Chidliak Production Profile - 1 million carats

I believe there are some ideas on what production rate Chidliak will run it.
Until we see a PEA, we won't know what Peregrine Diamonds comes up with.

However, I used an arbitrary figure of 500K tonnes per year in my first NPV Calculation.
If you missed it before, here it is again -- NPV Calculation 1

I have just discovered a publish document that has assigned a production rate to Chidliak.
It is in this very detailed and well written article by Paul Ziminisky.
Here is the link to the article -- Paul Ziminsky - february 2015

Way, way down on the article it lists development products and under anticipated production, it puts 1 million carats per year for Chidliak.

Based on 2.58 cpt, that gives a 387K tonnes per year rate.
Round that up to a nice and easy 400K tonnes per year.

If it mixes with some of the 1 cpt kimberlite from the other pits, you can see it works its way up to 450 or 500K tonnes per year to get to that 1 million carats.

Either way, I haven't been too far off with my first NPV calculation for that assumption.

Possibly, I will run NPV #2 at 400K tonnes per annum and see how that goes.

Sunday, February 15, 2015

Inferring the Inferred Value? NI43-101

Chidliak came up with an updated inferred resource on CH6 kimberlite and some updated TFFE (Tonnage for future exploration) on CH6, CH7 and CH44.

Valuations on CH7 and CH44 will not be available for over a year..so based on this statement from Peregrine Diamonds:

"NI 43-101 standards and Canadian Institute of Mining and Metallurgy guidelines stipulate that a Mineral Resource needs to have a "reasonable prospect of economic extraction". In assessing whether the CH-6 Inferred Mineral Resource met this standard, Geostrat considered publicly available costs from northern Canadian diamond projects relative to the total estimated in-situ value of the CH-6 Mineral Resource and concluded that there is a reasonable prospect of economic extraction."

To be able to determine if a resource exists, you must first get a valuation to see if it has a potential for economic extraction.

Now, I take this that CH7 and CH44 will not get an inferred resource regardless of how much core drilling has taken place on the property.

Then you fast forward to another company - Dunnedin Ventures Inc.

and here they flag a maiden inferred resource without any valuation --  Dunnedin release

With this snippet:

"The potential diamond valuation or mining characteristics of the Kahuna and Notch kimberlites have not yet been determined.  However, a 2008 evaluation of Kahuna diamond characteristics by Mineral Services Canada (MSC) describes the Kahuna diamond population as having encouraging value characteristics, with a high abundance of colourless and near colourless varieties with octahedral shapes being the dominant morphology.  The Notch kimberlite displays similar diamond characteristics to Kahuna and other significantly diamondiferous kimberlites within the Kahuna Project including the PST and Killiq kimberlites."

They squeak around the issue by saying like kimberlites are like kimberlites and therefore let's use that. They infer a value. An Inferred resource with an inferred valuation...yet they are not allowed to give a number on that inferred valuation..yet the geologist is still allowed to use it to create an insitu and potential economic extraction validity.

I don't want to mess around with the NI43-101 police...but does not mean that since CH45 and CH46 are quite in the vicnity of CH44 and CH7...that we can then infer valuations across those pipes?

I would say if the modeling of CH7 and CH44 are very similar, then the answer to that would be yes.

Not sure how valuable that is anyway...because if you can't find a $ to attribute to the inferred resource..yet, you include an inferred resource in a PEA study...you are stuck, at a dead end.

I'm going to go out on a limb and say Dunnedin is crossing the grey area threshold and more likely they could just release a very narrow spread on the TFFE information and still advertise a grade like CH-7 has a 1.04 cpt grade associated with it.

Interesting concept. However I have to figure out what makes an indicated resource..just more drilling, more carat valuation? what?  Kimberlite pipes being confined..it is not that much to a couple of infill drill holes.

Thursday, February 12, 2015

Peregrine Diamonds - Reorganization

Here is the official release -- Peregrine Reorg

Several key points here.

1 - Tom is the front man for Peregrine Diamonds. Pretty obvious choice here as he has been the clear representative for Peregrine in most, if not all Community related events. I don't know how many times Eric has been up to Nunavut...but I can bet Tom has many multiples on Eric.

2 - Isolating Chidliak from all other assets. Could be several reasons for this.
   a - Could spin out non chidliak assets into a seperate shared structure and have that structure share some of overhead costs with Peregrine Diamonds.
   b - Could sell the spinco altogether to another company and raise more $$ s to spend on Chidliak
   c - spinco could start consolidating similar assets (previous partners) for dirt cheap. Create something more cohesive and appetizing.

3 - Eric has withdrawn his CEO title. Is executive chairman for both entities and also the Chair for the Board of Directors. Focusing on the strategic planning, but more importantly funding initiatives. He may even take a pay cut for the good of the company. He does own a lot of shares, so is already heavily vested into making this thing work. Another thing is that he is part of the trifecta (Eric/Robert/Ned). If they are going to do anything significant together (whatever that is), by withdrawing from CEO, he may be in a better position to not incur a conflict of interest at some point in the future. Technically the Chairman (and he is now 3 of those) does not have a regular vote..but is only used to vote if there is a split.

4 - I don't think they would just do this arbitrarily without having a plan for the future. That will only be known as the future unfolds.

5 - Spincos regularly get created when a company gets taken over and the management/board of directors still want a job at the end of the deal. They go with the spinco plus some cash and the original entity goes to the company taking it over. In this case, that would be imply the carriage before the horse...but they can also be putting this on a silver platter for all to look at.

Tuesday, February 10, 2015

PDAC 2015 - Building a Diamond Resource at Chidliak - Baffin Island - Peregrine Diamonds

Peregrine Diamonds will be at PDAC via one of the Diamond sessions.

The Session is titled Diamonds are forever: Canada's Turn.
One of the chairs is Jennifer Pell from Peregrine Diamonds and one of the speakers is Tom Peregoodoff from Peregrine Diamonds.

This is a great opportunity to see an update on Chidliak and also see what is happening in the Diamond industry in Canada.

Here is a link to the schedule -- Diamonds are forever - Canada

Including in the schedule is an update from Matt Manson of Stornoway, George Read of Shore Gold and Leo Fusciardi of De Beers Canada.

Other Agendas
Registration brochure
Schedule at a glance

Corporate Presentation for Investors - Diamonds - Room 801B on March 3rd from 10 am to 12 noon.

Included in this presentation are Mountain Province Diamonds, Lucara Diamonds, Stornoway Diamonds.

Interactive Map of Booths -- Floorplans

Diamond companies with booths:
Arctic Star Exploration - Booth 2103
Shore Gold Inc. - Booth 2330
Stornoway Diamond Corporation - Booth 2938
Diamcor Mining Inc. - Booth2316
North Arrow Minerals - Booth 2707
Canterra Minerals - Booth 2741
True North Gems - Booth 3100
Talmora Diamond Inc. - Booth 2423B

Good to see significant Diamond exposure at PDAC in all facets of the conference. I think Stornoway is involved all facets and others pick and choose.

Hopefully Peregrine Diamonds release a nice updated powerpoint presentation at the time.

Kaiser will be having a session to -- Kaiser Details

Community Relations Continue - Public Meetings recently

Peregrine Diamonds Ltd. Public Meetings in Pangnirtung

PUBLIC INFORMATION MEETING
PEREGRINE DIAMONDS LTD.
Monday, January 26, 2015
COMMUNITY CENTRE
7:00 pm to 10:00 pm
Presentation, Questions & Informal Discussion
Refreshments will be served and door prizes to be given away.
OPEN HOUSE
PEREGRINE DIAMONDS LTD.in PANGNIRTUNG
Tuesday, Jan. 27- 10am to 12pm & 1pm to 4pm
Wednesday, Jan. 28- 10am to 12pm & 1pm to 4pm
COMMUNITY CENTRE
Drop in for a chat and we’ll be happy to answer any questions.
Representatives from Nuna Logistics and Royal Bank will also be in
attendance.

Link -- Link to details
Link to PDF advertisement -- Event Advertisement
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Good to see Peregrine is spending $$'s where it counts.
Royal Bank also in attendance...interesting.

This is part of the long process of building a mine.

See if we can drum up a copy of the public meetings notes at some point in the near future.



Saturday, February 7, 2015

Kimberlite Details

I'm going to start laying out details of each kimberlite at Chidliak periodically. Probably add a new one every couple of days.

Starting with kimberlite CH2 -- Details_ch2

Result of CH2 is a 2 hectare estimated size with some hope of commercial size diamonds.
Further testing will be needed, but this will not be in the PEA analysis or initial mine plan.
A couple of macros were considered fragments, so this does add some enthusiasm to further test this kimberlite in the future.

See more details in the link above.

Friday, February 6, 2015

Friedlandnomics

Just recently, Robert Friedland's Ivanhoe Mines released a PFS study.
Here is an article on it -- PFS - Ivanhoe Mines

Ivanhoe mines is currently sitting at about $500 million market cap.
The NPV sits at $972 million @ 8% discount

Eric Friedland's (brother) Peregrine Diamonds (pgd.to) will be releasing a PEA in next 12 to 16 months.

With bulk sampling from both CH7 and CH44 and continued conversion of TFFE in CH6, there is significant chance to exceed what Ivanhoe's PFS has created.

Could younger brother Eric's project exceed Robert's project over time?

Ivanhoe has a much larger project, Peregrine Diamonds has a much more valuable project.

Of note, Robert owns shares in Peregrine Diamonds as well as Ivanhoe.

Peregrine Diamonds sits between $40 to $50 million market cap, representing 1/10th of what Ivanhoe is worth.

Thursday, February 5, 2015

Workshop - Kimberlite Evaluation: Essentials for understanding primary diamond deposits - Toronto, Ontario

Workshop upcoming in Toronto, Ontario.
February 28th to March 1st, 2015

Here is a link to the registration and agenda information --> Diamonds workshop

Jennifer Pell from Peregrine Diamonds will be speaking at 9:30 am on the first day.
Title of her presentation - Beyond G10's: Contemporary Indicator Mineral Applications in Diamond Exploration.

Jennifer Pell is the Chief Geoscientist for Peregrine Diamonds..the owner of Chidliak.


I've created an initial youtube playlist for interviews related to Chidliak.
Check it out here --> Chidliak Videos playlist

Wednesday, February 4, 2015

3D PDF - Kimberlites

Here is a sample of what 3D PDF's look like of a couple of Chidliak pipes.

CH7 -- CH7 Kimberlite

CH44 - CH44 Kimberlite

I created these wireframes a few months ago based on some public information available.

Enjoy.

John Kaiser and Chidliak

Kaiser and Chidliak

New Video interview - John Kaiser - Discovery Watch - August 25th, 2017
(Chidliak talks start at ~20:50)






Video interview - John Kaiser with John Goddard - August 4th, 2017
(Chidliak talk starts at ~ ~2:40)



Video interview - John Kaiser with Allan Barry - July 15th, 2016
(Chidliak talk starts at ~1:09:20)



Video interview - John Kaiser with Allan Barry (June 30), 2016
(Chidliak talk starts at ~41:30 minutes)




Latest Video interview - Update June - 2016 -  





NEW - April 29th, 2016 (Available now)  - Apr 2015 Report
NEW - May 24th, 2016 - John Kaiser with Allan Barry
Available - May 6th, 2016 -- Report 1

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New audio/video interview:

March 30th - John Kaiser with Allan Barry -- March 30, 2016
March 26th - John Kaiser on Al Korelin weekend show -- March 26, 2016
March 8th - interview on BNN -- Top Picks - BNN
Feb 5th -Allan Barry reports talks to John Kaiser -- Video Link
Aug 26th - The fundamentals of gloom and doom
July 25th - This week in money
June 3rd, 2015 -  Diamond Investing News Interview

New presentations:

July 30th, 2015 - Sprott Workshop
June 1st, 2015 - Fast and Slow Trains out of the Bear Market Trough
May 30th, 2015 - Looking at Juniors from a Security of Supply Perspective

Here is an audio interview from May 30th on the Korelin Show (includes Kaiser)
Link to show -- Korelin Show - Segment 3

Here is an audio interview from Feb. 7th on the Al Korelin Show.

Link to show -- Korelin - Kaiser video

John Kaiser Recommendation Strategies on Peregrine Diamonds.

April 29th, 2016 (Available now)  - Apr 2015 Report
March 14th, 2016 (Available now) - Report 1 Report 2
Jan 28th, 2016 (Available now) - Jan 2016 report 4
Jan 20th, 2016 (Available now) - Jan 2016 report 3
Jan 19th, 2016 (Available now) - Jan 2016 report 2
Jan 12th, 2016 (Available now -- NEW) - Jan 2016 report 1
Nov 19th, 2015 (Available now) -- Nov 2015 Report
Oct 28th, 2015 (Available now) -- Oct 2015 Report
July 14th, 2015 (available now) -- July 2015 Report
July 11th, 2015 (quarter update) -- July 2015 QTR report
May 14th, 2015 (available now) -- May 2015 Report
May 5th, 2015 - May 2015 Online Interview
Apr 16th, 2015 (available now) -- Apr 2015 Report
Mar 31st, 2015 (available now) -- Mar 2015 Report #2
Mar 10th, 2015 (available now) -- Mar 2015 Report
John Kaiser video interview at PDAC 2015 --  Kaiser Video 2015
John Kaiser at PDAC 2015 - March 1st - 10:45 am to 11:10 am - Room 801 - Details

PDAC Presentation #1 - 4 Core Narratives
PDAC Presentation #2 - The Future of the retail investor and the resource juniors

Jan. 26, 2015 (available now) -- Jan 2015 Report
Jan 2015 conference presentation -- Cambridge Conference Presentation
Aug. 25, 2014 (available now) -- Aug 2015 Report
Jul. 16, 2014 (available now) -- July 2014 Report
Mar. 19, 2014 (available now) -- Mar 2014 Report
Feb. 26, 2014 (available now) -- Feb 2014 Report #2
Feb. 24, 2014 (available now) -- Feb 2014 Report #1
Jan. 16, 2014 (available now) -- Jan 2014 Report
Dec. 3, 2013 (available now) --  Dec 2013 Report
Oct. 11, 2013 (available now) --  Oct 2013 Report
Aug. 28, 2013 (available now) -- Aug 2013 Report
Jan. 28, 2013 (available now) --  Jan 2013 Report #2
Jan. 11, 2013 (available now) -- Jan 2013 Report #1
Sept. 5, 2012 (available now) --  Sept 2012 Report
Aug. 22, 2012 (available now) -- Aug 2012 Report
Video - Chidliak - Check out NPV #1 Calculation --> NPV1