CH1 Kimberlite (PHASE 2)

CH-1 Kimberlite

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Update August 2016 --> August 3, 2016 Technical Update PDF
(Page 24 and 25)

Estimated Surface area of 2.6 hectares
More drilling is needed to understand internal waste in the kimberlite.

 Surface mini bulk was part of CH-1A and returned a 0.41 cpt grade.
CH-1 (other) shows a possible macro grade of 1.06 cpt +/- 0.24

Huge standard deviation with that grade, but if the grade can hold up over 1 cpt, it could easily be included in the mine plan before final construction of Chidliak is completed.

Valuation is the next step and the quality of the original 2.01 stone is excellent and would more then likely be included in the first parcel submitted for valuation.

Valuation will be the key driver here to give CH-1 an margin edge over CH-7.

Of the 225 stones sitting on the 0.6mm sieve, the colour distribution is phenomenal.
91% is either white/colourless or off-white.
The remaining 9% is about 1% brown, 4% grey and 4% yellow. The yellows will still hold value and give the potential for fancy stones whereas the brown's and grey's making up only 5% of the distribution are the disliked stones.

Of those same 225 stones, 83% of those stones are transparent. Its probably safe to assume that those 5% grey/brown stones are part of the 17% non-transparent portion.

CH-1 is now considered a brownfield kimberlite and will be about 4 to 5 km's away from the proposed mill and it will be about 1.5 km's to CH-7 and the road that is proposed between CH-7 and the mill.

Sometimes one must follow their first instinct when stumbling upon something knew. CH-1 was the first official kimberlite at Chidliak and that 2.01 stone in the outcrop was the first macro stone found at Chidliak. More work needs to be done to include CH-1 into the Life of Mine (LOM) for Chidliak, but there is a good chance that it will not just be included in the mine plan...but also give a good margin. If it can hit valuations similar to CH-6 and produce grades similar to CH-7, the profit margin on CH-1 could well be over $100 per tonne. With the 2.6 hectare size, it could extend the mine life or increase the mill throughput design.

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The CH-1 kimberlite was discovered in 2008, having a surface expression of 1 hectare and residing in Chidliaks Southern Focus Area. It has had several samples over the years totally 53 tonnes of kimberlite. The samples were primarily collected from an easily accessible out cropping which does not represent the entire kimberlite and returned a total of 24.557carats for a grade of 0.46cpt with the largest stone recovered to date being a 2.01 gem quality white/colourless diamond.

The potential value in CH-1 is not yet clearly understand as the earlier 2.28t sample yielded a magnificent 2.01 gem quality diamond while the largest diamond to drop out of the 43t sample conducted later was only 1.35c. That along with the fact these samples were taken mainly from surface and the mini-bulk sample being collected from an out-cropping that does not accurately represent the kimberlite body leaves the full story of CH-1 as yet untold.

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