Topic: How To Invest

Hi Pat: What is your advice on Peregrine Diamonds? Thank you.

Article Excerpt

Peregrine Diamonds, $2.33, symbol PGD on Toronto (Shares outstanding: 81.4 million; Market cap: $189.7 million), mainly develops and explores for diamonds in Canada. It is primarily focused on its discovery of diamond-bearing kimberlites on its Chidliak property on Baffin Island. Aside from its work at Chidliak, Peregrine explores for metals deposits. Kimberlites are cone-shaped pipes made up of magma (molten rock) and rock that volcanic activity carries to the surface from depths greater than 150 kilometres. Diamonds form at those depths, under a mix of extreme pressure and high temperatures. The rock in the kimberlites may pick these up on its way to the surface. In September 2009, Peregrine’s share price shot up from about $0.60 to as high as $4.65. That’s because the company announced that it had discovered seven additional kimberlites at Chidliak. It also announced results from tests on drill-core samples from the kimberlites it had previously discovered at Chidliak. These revealed that the sample contained high grades…