Issue link: http://resourceworld.uberflip.com/i/734523
20 www.resourceworld.com o c t o b e r / n o v e m b e r 2 0 1 6 C anada has five operating diamond mines; three in the Northwest Territories (Ekati, Diavik and Gaucho Kue) the first of which was Ekati, found in 1991, and put into production in 1998, plus one each in Ontario (Victor) and Québec (Renard). Their presence is due to the ancient Canadian Shield or Archean cra- ton that underlies much of the northern part of the country. We now know that cratons within the range of two billion years or older are the most favourable places to find diamond-bearing kimberlites. Canada's next diamond mine is destined to be found on Baffin Island, Nunavut, based on the exploration efforts of Peregrine Diamonds Ltd. [PGD-TSX]. Exploration began in 2005 with sampling of glacial till in search for kimberlite indicator minerals (KIM) followed by airborne geophysical surveys. In 2008, the first three kimberlites were discovered by surface prospecting and, subsequently, a total of 74 individual kimberlites have been found using a com- bination of surface prospecting, diamond and reverse circulation drilling on the Chidliak property (513,249 hectares) and adjoining Qilaq (51,147 hectares) claims, located 120 km northeast of Iqaluit on the eastern shores of Baffin Island on Cumberland Strait. Between 2009 and 2015, 27,855 metres of diamond and 6,052 metres of small and large diameter reverse circulation holes were drilled on the project. PROJECT LOGISTICS – Although cur- rently land locked and only accessed during winter months, when suf- ficient ice and snow is present, via the Iqaluit-Chidliak winter trail, supplies are readily provided by air- craft year round. As highlighted in their recently completed Preliminary Economic Assessment (PEA), access to seaborne freight, when required, will be best served by the construction of a ~160 km all- weather road to Iqaluit. The project has many similar character- istics to the Ekati diamond discovery at Lac de Gras in 1991: discovery by glacial till sampling, road access by winter ice road from the Territories' capital Yellowknife (with air service from major Canadian cit- ies) and in the mining-friendly Territory of Nunavut looking for the financial gains to be derived from a producing diamond operation. Year-round seaborne access from Iqaluit to the project of about 2/5 of the distance that accessed Lac de Gras from Yellowknife will considerably reduce trans- portation costs for equipment and supplies. KIMBERLITE DISCOVERIES TO DATE – Two of the 74 kimberlites discovered to date – CH-6 and CH-7 – host inferred min- eral resources and the recently completed, independent PEA indicates that they could support a robust, high margin, 10-year, open-pit, mining project with very attrac- tive economics. Kimberlite CH-6 is a high-margin, pipe encompassing one hectare on surface that contains an inferred mineral resource of 11.39 million carats of diamonds in 4.64 Peregrine Diamonds ChIdLIAk PROJECT, BAffIN ISLANd – CANAdA'S NEXT dIAMONd CAMP by Dr. Edward Schiller miNiNg map courtesy peregrine Diamonds Ltd.