Monday, November 14, 2016

2017 Trench

Trench sample - 2017 - CH-6

Some detail from the trench bulk sample for early 2017 has slowly trickled out.
There has been some mention of a plan in the 2016 technical report, but only a figure of 400 tonnes and a budget of $2.5 million was mentioned.

As part of the water permit Peregrine Diamonds has in hand, it requires them to get approval for any trench bulk sample program and have at least 90 days before asking for approval and executing the bulk sample.

The target date for the program is March 1st, 2017 during the winter cold when the ground is frozen including all water in the vicinity.

Details: 30m x 15 m trench at depths from 3 metres to 8 metres.
Tonnage expected - 500 tonnes.

What can be expected of those 500 tonnes? How many carats?

The material will be extracted from the wKim-L phase. This basically means the kimberlite 'L' that makes up the majority of CH-6 and the 'w' means weathered. This usually is the material near surface that has had some exposure to the environment over the millions and millions of years.

The question is whether the material will be from the HG or the LG version of Kim-L. HG means the higher grade area whereas LG is the normal grade. It isn't really low grade as the deposit is very high grade for any diamond deposit.  What difference does this make?

LG - 2.12 cpt (carat per tonne) and the wLG has a density of 2.19 m^3 per tonne
HG - 4.16 cpt (carat per tonne) and the wHG has a density of 2.29 m^3 per tonne

HG, being more dense, means that you can blast a bit less (5% less) of material to get the same 500 tonnes of kimberlite.

HG, being much higher grade, means that you can get a lot more carats out of that same area.

At 500 tonnes - LG would produce 1060 carats and the HG would produce 2080 carats.

There is an obvious benefit to targeting the HG zone...if it is accessible.

Is Peregrine Diamonds targeting the HG zone?

Here is an image of the bulk sample area in plan view:

The bulk sample is near the dark blue circle. It is near the far West and toward the south part of the surface expression.

Here is an image showing the HG versus LG zone:

There is no specific co-ordinates on this image, other then the 'looking East', so an estimate of where that same bulk sample area for 2017 has been highlighted in dark blue.

One can see that hitting some tonnage from the HG zone is a possibility and it would make sense for Peregrine Diamonds to target this area to get as many carats as cheaply as possible.
More carats, means the resulting valuation model will be more robust.

Looks like the journey of 500 tonnes for 2017 has started its first chapter. This may be joined by LDD (larger diameter drill) tonnage as well along the way. (TBD)

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