Issue link: http://resourceworld.uberflip.com/i/581931
34 www.resourceworld.com o c t o b e r / n o v e m b e r 2 0 1 5 Stornoway Diamond Corp. [SWY-TSX] – Performance YTD +45.28% Stornoway is advancing their Renard Project in Québec toward production in 2017 and this relatively small deposit should come on stream when global production will be needed. It has had a strong performance this year as it moves toward production in 2016. As such, more gains could be possible as they move towards cash flow. Kennady Diamonds Inc. [KDI-TSX] Performance YTD -29.59% KDI was a successful spin-off from Mountain Province Diamonds. It is cur- rently drilling and evaluating two very high-grade diamond deposits originally discovered by De Beers near the Gacho Kue Mine. Although smaller and more elongated than a typical kimberlite pipe, the Kelvin and Faraday kimberlites have shown to have grades in excess of 2 carats/tonne, making them among the highest grades ever found. They are currently delineating and assessing the value of the diamonds which have included some larger and very nice look- ing goods along with a population of brown diamonds. Peregrine Diamonds Ltd. [PGD-TSX] Performance YTD 0% Once a joint-venture with BHP, PGD suffered collateral damage from BHP's bombshell announcement in 2012 that the global mining giant was exiting the diamond business. Peregrine's Chidliak Project on Baffin Island is another smaller but high-grade deposit. PGD ended up buying BHP's interest for $9 million over three years and all of BHP's diamond exploration data. It was a good deal for PGD but it put most of the 2012 and 2013 exploration program on ice while they scrambled to find a new partner. Robert Friedland and Ned Goodman stepped in with a $10,000,000 equity investment. In January of this year, they announced a revised independent inferred resource for their flagship CH6 pipe of 8.57 million carats in 3.32 million tonnes of kimberlite to a depth of 250 metres grad- ing 2.58 carats/tonne. An independent valuation of a 1,013-carat diamonds parcel returned a value of US 213/carat. This is a high-grade, high value resource. In 2015, a 558.5 wet-tonne bulk sample was col- lected in May from the CH7 Kimberlite to confirm the continuity of diamond grade throughout the body and collect diamonds for evaluation. This is a very interesting and promising project that has had to advance at a much slower pace than ideal because of the dif- ficult financing environment. Peregrine also has majority ownership of the DO27 pipe in the Lac De Gras region with an indicated resource of 18.2 million carats grading 0.94 carats/tonne and a base case modeled price based on 2005-2007 prices of US $51/carat. According to WWW International Diamond consultants, dia- mond prices had increased on average by around 65% since then. continued to page 61