April 19, 2005
Update On The Bulk Sampling Of The DO-27 Kimberlite, Slave Craton, NWT, CanadaMr. Eric Friedland, President of Peregrine Diamonds Ltd., today reported that approximately 150 tonnes of kimberlite of the 200 tonne bulk sample have been extracted using a 14" diameter, RC drill rig operated by Midnight Sun Drilling. A total of six holes were completed to varying depths and the kimberlite extracted has been shipped to BHP Billiton's Ekati(tm) Diamond Mine for processing through their test plant, including x-ray and grease table concentration, to be followed by hand sorting of diamonds. All processing and sorting is expected to be finalized by the end of May 2005, at which time more information including, but not limited to, total carats recovered will be provided.
Peregrine is confident that sufficient information will be obtained from this sample to make sound decisions regarding the future testing of DO-27.
Peregrine, Midnight Sun and BHP Billiton have come to agreement whereby Midnight Sun's large diameter RC drill rig will be stored at Ekati(tm) until next winter. This advance planning will allow Peregrine, in anticipation of positive results from this current program, to commence next year's bulk sample program in early January, 2006, and could add as much as sixty extra drilling days to the winter drill season, rather than waiting for the opening of the main Tibbitt to Contwoyto ice road.
A program of NQ sized core drilling of the DO-27 pipe is scheduled to begin by the end of this week. The first core hole is planned to be drilled to 600 meters of depth into the perceived center of the pipe. A total of six core holes, drilled in close proximity to the previous 6 RC holes, are scheduled as long as safe lake-ice conditions exist. The core drilling is intended to provide additional geological and geotechnical information on DO-27.
Unless otherwise negotiated, upon completion of a 200 tonne sampling program, Peregrine's interest in the project will increase from 38.475% to 54.475% plus operatorship. The other partners' project interests will be: Archon 13.275%, Aber Diamonds 7.35%, DHK Diamonds Inc. 20%, (DHK Diamonds is 1/3 owned by each of Dentonia Resources Ltd., Horseshoe Gold Mining Inc. and Kettle River Resources Ltd.), and SouthernEra 4.9%. All interests are subject to a 1.3% Royalty.
On Behalf of the Board
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