Mining News: Northern Neighbors: CH-7 diamonds average $100/c; priciest stone worth US$16,555

Peregrine Diamonds Ltd. March 8 reported that a 735.75 carat parcel of commercial-size diamonds recovered from five geological units of the CH-7 kimberlite pipe at its Chidliak project in Nunavut were valued at an average price of US$100 per carat. The eight highest value diamonds ranged in size from 1.35 carats to 5.33 carats, weighed 21.58 carats in total, and had a current average price valuation of US$1,619 per carat. The most valuable of the diamonds, the 5.33 carat white/colorless octahedron, was valued at US$16,555 (US$3,106 per carat). The modeled average price ranged from a low of US$94 per carat to a high of US$155 per carat, with a base modeled price of US$114 per carat. The diamond valuation was undertaken by Belgium-based WWW International Diamond Consultants. Neil Buxton, responsible for geostatistical modeling at WWW, said, “Based on our analysis of the parcel, WWW believes that if CH-7 were in production in the current diamond market, it is unlikely that the average price would be lower than the low average modeled price. It is equally important to understand that the high average modeled price does not represent a maximum price and that the ultimate diamond price could be higher than US$155 per carat. These results need to be confirmed with a larger sample.” With the valuation results in, Peregrine is working on resource estimates for the CH-6 and CH-7 kimberlites at Chidliak. “The diamond valuations from CH-7 provided by WWW will support the maiden CH-7 resource statement expected this month and, together with the revised resource at CH-6, will form the foundation of the independent preliminary economic assessment of a phase 1 diamond mine expected this June,” said Peregrine President and CEO Tom Peregoodoff.

–Shane Lasley