The BarkerLetter

I’m watching Peregrine Diamonds (PGD.TSX) heading into the new month.

At least one rating (Westwind Partners) on Peregrine has been raised to buy from hold in recent weeks on what is deemed the early success of PGD’s bulk sample program at DO-27 in Canada’s Northwest Territories.

We’ve been told the program is well underway, with 1,000 metric tons collected from the DO-27 kimberlite so far. The ice-based drilling is proceeding without the technical challenges it experienced last year.

Peregrine says it needs at least 3,000 carats for a meaningful diamond valuation. I think we’ll get some definite indicators this month as to whether it expects to meet that goal.

The company is busy elsewhere in the Canadian arctic as well. Ground based magnetic surveys at the Nanuq project in Canada’s vast Nunavut territory have outlined a large magnetic anomaly at the head of a well-defined mineral train. Peregrine is also exploring the Pellatt Lake Project, which it says is contiguous to the northeastern boundary of BHP Billiton’s Ekati Diamond Mine.

Westwind’s target on the stock is $3.00 Cdn. It currently trades in the $2 range.

I’m hopeful someone at least makes a significant diamond discovery in Canada this spring. The rising tide is bound to lift all boats.