Peregrine Diamonds Ltd. (TSX: T.PGD, Stock Forum) said that a bulk sample weighing approximately 508 wet tonnes has been collected by surface trenching from the CH-6 kimberlite on the company's Chidliak project located on Baffin Island, 120 kilometres from Iqaluit, Canada.
To date, approximately 325 tonnes of the 508 tonne bulk sample from the CH-6 kimberlite have been transported to Iqaluit where the sample is being stored until the summer when it will be transported to Montreal on the sealift.
According to the Peregrine Diamonds press release, the sample is currently scheduled to be processed by the Saskatchewan Research Council in Saskatoon in the fourth quarter, followed by independent valuations of the resulting diamond parcel.
Currently, the project is subject to an option agreement with De Beers Canada, a private diamond mining company, whereby De Beers has the exclusive right until Dec. 31, 2013 to enter into an earn-in and joint venture agreement for Chidliak on a 50.1% De Beers / 49.9% Peregrine basis.
Peregrine will not commence processing of the bulk sample until De Beers delivers to the company binding notice of their decision regarding their right to enter into an earn-in and joint venture agreement for Chidliak or the option expires.
Peregrine's objective is to utilize the diamond grade and value information from the bulk sample and geologic and diamond content information acquired from core drill programs conducted in 2009, 2010 and 2011 to develop a preliminary revenue model and establish an initial resource for CH-6.
This work will serve as a foundation for future independent resource calculations and together with the mining study being completed by De Beers, enable the completion of a Preliminary Economic Assessment for CH-6 in the first half of 2014.
Peregrine is a diamond exploration and development company focused on Canada's North.
On Tuesday, Peregrine rose 7.7% and was trading at $0.35 a share. The company had a market cap of $45.2, based on 129.2 million shares outstanding. The 52-week high and low was $0.65 and $0.26 respectively.