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De Beers acquire Peregrine Diamonds

De Beers Canada has entered into an agreement to acquire 100 per cent of the outstanding securities of Peregrine Diamonds, owner of the high quality Chidliak diamond resource located in Canada’s Nunavut Territory.

The Chidliak resource was discovered in 2008 and is located approximately 120 kilometres northeast of Iqaluit on Baffin Island.

According to De Beers a total of 74 kimberlite pipes have been identified at Chidliak, including the CH-6 and CH-7 pipes, which are the current focus of Peregrine’s Chidliak Phase One Diamond Development programme.

The programme has a total Inferred Mineral Resource in excess of 22 million carats. Peregrine’s recent Preliminary Economic Assessment for Chidliak points to the high quality of the CH-6 deposit in particular.

An estimated grade of 2.41 carats per tonne and a diamond valuation of US$151 per carat (equating to approximately US$360 per tonne) make CH-6 one of the most attractive undeveloped diamond resources in Canada.

Peregrine also has exploration properties elsewhere in Nunavut and the Northwest Territories.

Bruce Cleaver, Chief Executive Officer, De Beers Group, said the Chidliak resource holds significant development potential and will be an exciting addition to our portfolio.

“With a strong outlook for consumer demand, we are seeking new opportunities to invest in our future supply potential and look forward to growing our portfolio in Canada and working with community partners in the Nunavut Territory as we further develop the project.”

Meanwhile Kim Truter, Chief Executive Officer, De Beers Canada, said the investment reinforces De Beers Group’s long-term commitment to Canada, following our investment in the Gahcho Kué diamond mine, which entered commercial production last year.

“Chidliak is a high value prospect and the Peregrine team has done great work to bring it to this advanced stage.

“With the transformation of our company in Canada over the past two years, our focused investment in new and innovative mining methods, and our expertise in Canada’s arctic environments, we believe we are very well positioned to now develop the resource further.”

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