CH44 Kimberlite (PHASE 1)

CH-44 Kimberlite


Update August, 2016 - August 3, 2016

(Pages 21, 22 and 23)

From the presentation above, there is an indicated (internal model grade) and a nice color distribution.

Internal model grade --> 1.06 cpt +/- 0.16 cpt
Color population distribution for the 135 stones sitting on the 0.6 mm sieve:
82% white/colourless or off-white
18% is a mix of brown's, yellow's and grey's (in that order).
92% transparent

CH-44 is the third most progressed pipe on the project and is basically waiting for a trench bulk sample or an LDD RC drillholes to get a pracel for valuation.

TFFE between 1.266 and 3.185 million tonnes when compared with a potential 1.06 cpt grade would give  a carat count between 1.34 million carats and  3.38 million carats.

The key parameter missing is the valuation. If the valuation comes back between US$100 and US$200 per carat then that would give very good margin to this pipe and could clearly be added to the mine plan.

---Update November 2015 --
As per the May 14th news release:
"A program designed to establish a maiden resource at CH-44 is planned for 2016. The shallow overburden at CH-44 will allow a bulk sample to be collected by cost-effective surface trenching. "
What does cost-effective mean?
Looking at the overburden holes drilled in 2014..they range from 3.96 metres to 5.79 metres. This should be much easier to trench than even ch-6 was.
This type of program has usually been done in February to May timeframe..not because of the actual trenching..but the movement of material in and out over an ice track.
Details are lacking as all eyes are on the ch-7 bulk sample...but this could easily be the biggest field program ahead for 2016.

The largest diamond to date from the core samples is a 0.33 carat off-white transparent octahedron.

July 2015 Update - The LDD did not have enough to drill into this kimberlite for the bulk sample session. The current plan to have a trench bulk sample occur sometime in early 2016 (subject to change). This kimberlite will not be included in the base case PEA...but should be included in a subsequent PEA or PFS. No defined work for the 2015 field season. The overburden holes were completed in 2014 that are crucial for the trench program.

Update - New Caustic results in that extend known kimberlite down to 244 metres.
Between 154 and 210 metres look to have a higher stone count and higher grade. Grade could increase to about 1.5 cpt from the estimated 1 cpt in the upper 100 metres.

CH44 Kimberlite will be bulk sampled starting March 2015.

Significant core drilling happened in the summer of 2014.

Prior to that, I created a 3D PDF of the shape of the kimberlite.

Check it out here --> 3D image of CH44 Kimberlite

Will be updated at some point.

CH44 could be a 1 cpt kimberlite.

C44 has a TFFE estimate from the latest technical report.

Tonnage range:
1,266,000 to 3,185,000

Size - 0.5 hectares

The latest caustic showed 146 kgs creating 440 stones and 0.23 total carats.

That equates to a  1.6 cpt grade.
This indicates that ch44 should clearly be in line with the ch-7 1.04 cpt macro grade.

This will be confirmed through the 250+ tonne bulk sample with the LDD unit turning as we speak.

This is the last of the trifecta for Phase 1 mine devlopment at Chidliak.

Assuming it comes with similar value of ch6, we could see almost CAD$1 billion potential in the top half of this pipe.

This pipe packs a bunch for being only half hectare.

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