Survivalto ensure that the hunter-gathering lifestyle of the Bushmen people would not succumb to development, but the Botswana government eventually decided to open up the CKGR to diamond exploration and development. The ex De Beers team assembled its land package on the premise that past exploration work which relied heavily on indicator sampling of the Kalahari Desert sands was flawed and may have overlooked world class diamond pipes, of which Jwaneng to the southeast is the richest in the world.

The Botswana initiative follows Peregrine's recent decision to transfer its Canadian Lac de Gras and Nanuq assets plus exclusive access to its BHP North American diamond exploration database into an exploration subsidiary called Peregrine Exploration Ltd of which Brooke Clements has been placed in charge. The Lac de Gras assets include the DO27 pipe on which Peregrine spent over $50 million to outline an indicated resource of 19.5 million tonnes of 94 cpht for which a base case value of US $51 per carat was modeled in 2007. The pipe hosts an additional 6.5-8.5 million tonnes for which a grade cannot yet be assigned due to insufficient sampling to establish carat value. AMarch 24, 2015 news release devotes a paragraph to the possibility of transporting DO27 ore to a third party diamond recovery facility such as Diavik or Ekati. The unnecessary detail is finished off with the statement "this material could be an excellent blending stock for a third party facility". While this makes sense with metallic ores for which grade and recovery can be easily measured ahead of blending, such a statement makes no sense in the context of kimberlite where the grade may be consistent between one tonne of ore and another, but the value of the diamonds can vary widely. There is simply no way to attribute the value of diamonds coming out of blended feedstocks to the original feedstock. Peregrine may unwittingly have tipped us off that a deal to sell DO27 outright may be in the works, for that is the only way its ore could be blended with that of Ekati or Diavik pipes.

The Peregrine warrants exercisable each at $0.21 for one share expire on April 6. With the stock now trading at $0.21-$0.22 the warrants are barely in the money. Although neither the Friedlands nor Ned Goodman have disclosed their intentions, given how under-valued I believe Peregrine Diamonds to be just on the basis of the CH6 pipe alone, I would be shocked to hear that they did not exercise their warrants. When Peregrine blindsided us last August with a guaranteed rights offering at 50% to the prevailing price, I recommended that Spec Value Hunters exercise their rights and clip the warrant for a free six month ride on the junior's ability to turn around its funk. It is now time to put that laid aside capital back to work by exercising those warrants. This week is probably the last opportunity to buy Peregrine Diamonds at $0.22, for when the half cent offered warrants are gone, the stock will likely leap higher, especially if Peregrine raises additional capital by doing a DO27 deal or selling a minority stake in Chidliak. Spec Value Hunters who need a refresher should re-read SVH Tracker: January 26, 2015 and SVH Tracker: March 10, 2015. Given everything that has ever been in the public domain for a diamond junior at any time since 1992, never has such exceptional value in a Canadian diamond junior been available to the market as now exists for Peregrine Diamonds Ltd.

*JK owns shares in Peregrine Diamonds Ltd