De Beers Tells Peregrine: Not Interested in Chidliak Project

(IDEX Online News) – Peregrine Diamonds Ltd. has been told by De Beers Canada Inc. that it will not exercise its right to enter into an earn-in and joint venture agreement with Peregrine on the Chidliak diamond project in Nunavut, Canada.

De Beers signed an option agreement with Peregrine last year, under the terms of which it would have invested almost $60 million in Chidliak over five years and would have become the operator of Chidliak with a majority stake in it if it decided to enter a joint venture.

The processing of approximately 250 wet tonnes of the 508 tonne bulk sample collected from the CH-6 kimberlite by Peregrine commenced in late September with approximately 150 tonnes of the sample having been processed to date.

De Beers is funding the processing and the subsequent diamond recovery at the Saskatchewan Research Council. Final results, including independent diamond valuations, are expected in the first quarter of 2014.

Peregrine's objective is to use the results, together with geologic and diamond content information acquired from core drill programs in 2009, 2010 and 2011, to develop a preliminary revenue model and establish an initial resource for CH-6.

More detailed information on the De Beers decision and the company's plans for Chidliak will be provided as it becomes available.