NUNAVUT – Peregrine Diamonds of Vancouver has confirmed that the at CH-6 kimberlite at the Chidliak project near Iqaluit extends more than 500 metres below the surface. Hole CHI-17-DD39 ended in kimberlite 532 metres below the surface.
Resource model of the Chidliak CH-6 kimberlite. (Credit: Peregrine Diamonds)
The 500-metre mark was the expansion goal of this year’s drilling program at Chidliak. Other holes drilled to depths of 296, 485, 442 metres also ended in kimberlite.
Peregrine recently completed a preliminary economic assessment for phase one development at Chidliak that estimated over 15 million carats in the inferred resource. The base case gave the project a $1.31 billion pre-tax next cash flow, a pre-tax net present value of $743.7 million (7.5% discount), and a pre-tax internal rate of return of 38.1%. The payback period would be only two years.
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