Weir River Project
On July 18, 2006, Peregrine entered an agreement whereby it was granted an option to acquire a 90% interest in 1 Mineral Exploration Licenses (MEL's), comprising 10,500 hectares located in northern Manitoba, Canada, approximately 50 km north-northeast of the town of Gillam. (Click here to view the location map) Under the terms of this agreement, Peregrine must pay an aggregate of $460,000 to the vendor over a five-year period ending in 2011 and incur minimum assessment expenditures on the property aggregating $950,000 over the same period. Peregrine is responsible for 100% of all exploration and other costs up to completion of a bankable feasibility study. The vendor may participate in subsequent mining operations under a joint venture with the Company, but can elect to have its 10% interest convert to a 1% gross overriding royalty on diamond production or a 1% net smelter royalty on other metal or mineral production. Peregrine can terminate this option at any time by providing 30 days notice to the vendor.
The Weir River Project is located off the northern edge of the Superior Craton, just north of its exposed margin. It is underlain by Ordovician cover, below which is believed to be Proterozoic rocks of the Trans-Hudson Orogen.
A 2,700 line kilometer fixed-wing airborne magnetic survey was completed over the Weir River property in March, 2007 and follow-up ground magnetic surveys were completed over 10 anomalies later in the year. In April 2008, one high priority magnetic anomaly was drilled without intersecting kimberlite.