Andrea Markey
Northern News Services

Yellowknife (Nov 23/05) - Located between an operating diamond mine and another that's under construction is a nine-hectare kimberlite that's one of largest known pipes in the region.

Peregrine Diamonds is drilling on its nine-hectare kimberlite again this winter, after encouraging results from last season. Margaret Harder, a project geologist with the company, displayed some core samples at the Geoscience Forum last week. - Andrea Markey/NNSL photo

The DO-27 pipe was discovered in 1993 and tested in 1994 by Kennecott Canada Exploration - with discouraging results.

Stocks fell 80 per cent, literally overnight.

While Diavik and Ekati opened around it, and the Snap Lake project broke ground, DO-27 sat undisturbed until this year.

The company that now controls the property, Peregrine Diamonds, is betting it will find good quality diamonds - possibly enough for another mine.

The property, located just off the top of MacKay Lake, actually contains nine known kimberlite pipes including DO-27. The bulk-sample by Kennecott just scratched the surface of the largest kimberlite on the property, said Eric Friedland, president of Peregrine Diamonds.

Compared with Ekati's Panda pipe at 3.1 hectares and Diavik's A154S and A418 pipes at two and 1.8 hectares respectively, Peregrine's DO-27 nine-hectare kimberlite is substantial.

Friedland was in Yellowknife recently to discuss the project with support companies and community leaders, including Tlicho Grand Chief George Mackenzie.

Peregrine, which has a 54 per cent share in the property, collected a 151-tonne sample last winter from a different area of the kimberlite than had Kennecott.

Jennifer Pell, Peregrine's vice-president of exploration, presented the company's results and plans at the Geoscience Forum last week.

The samples averaged 0.98 carat/tonne, compared with 0.36 carat/tonne from Kennecott's tests, she said.

Diamond values averaged $58-$78 a carat.

Encouraged, the company plans to extract a 3,000-tonne sample this winter, beginning in December.