November 25, 2010
Peregrine Announces Coarse Diamond Distribution in CH-44 Kimberlite at ChidliakPeregrine Diamonds Ltd. ("Peregrine" or "the Company") is pleased to report a coarse diamond size distribution for a 312.2 kilogram sample of reverse circulation ("RC") drill cuttings collected from the CH-44 kimberlite on the 9,800 square kilometre Chidliak project ("Chidliak" or "the Project") on Baffin Island, Nunavut, Canada. The sample yielded 910 diamonds larger than the 0.106 mm sieve size, including nine diamonds larger than the 0.850 mm sieve size which weigh a total of 0.45 carats. The CH-44 pipe is the sixth kimberlite at the Project with economic potential in Arctic settings.
In addition to CH-44, the Company has also received caustic fusion results demonstrating that five more kimberlites at Chidliak, CH-19, 21, 23, 35 and 38, are diamondiferous. To date, Peregrine has discovered 50 kimberlites at Chidliak, with 34 of those being discovered in 2010. Microdiamond results have been reported for 24 of the 50 kimberlites, and 23 are diamondiferous. Microdiamond results for additional kimberlites discovered in 2010 are expected by year end.
The following table summarizes caustic fusion diamond results from the CH-44 kimberlite. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ("the SRC").
SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR A SAMPLE FROM THE CH-44 KIMBERLITE
Of the nine diamonds larger than the 0.850 mm sieve size, two were classified by the SRC as being white/colourless, five were off-white and two were brown. The largest diamond was a 0.325 carat off-white, transparent octahedron.
Brooke Clements, President of Peregrine stated "We are very encouraged by these results from CH-44, yet another kimberlite at Chidliak with a strong coarse diamond size distribution and economic potential in Arctic settings. This kimberlite clearly requires more work in 2011, including core drilling and mini-bulk sampling. The CH-44 pipe is located in what we now refer to as the "Southern Focus Area", an area with an eight kilometre radius that currently hosts five kimberlites with economic potential: CH-1, CH-6, CH-7, CH-31 and CH-44."
The discovery of the CH-44 kimberlite by RC drilling was announced on September 16, 2010. The CH-44 pipe is located one kilometre west of CH-31 and 2.5 kilometres south of CH-7. One vertical hole was drilled into a magnetic high geophysical anomaly with an estimated surface expression of 0.9 hectares and kimberlite was intersected from two to 35 metres, with the hole being terminated in kimberlite. Dry RC cuttings of kimberlite were collected directly into 20 litre pails without screening and were security-sealed prior to shipment to the SRC. The CH-44 pipe is described as an olivine macrocrystic kimberlite (macrocrysts to 1.4 cm) with abundant fresh kimberlite indicator minerals including garnet, chrome-diopside and ilmenite. Paleozoic carbonate rock fragments and basement xenoliths were observed in the drill cuttings.
Images from CH-44 are available on Peregrine's web-site at http://www.pdiam.com/i/pdf/Chidliak517.pdf
CAUSTIC FUSION RESULTS FOR CH-19, 21, 23, 35 AND 38
Caustic fusion results for the CH-19, 21, 23, 35 and 38 kimberlites show that all five are diamondiferous. The analyses were performed at the SRC, and the results are summarized in the table below.
SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR SAMPLES FOR CH-19, 21, 23, 35 and 38
As reported on July 19, 2010, CH-19, CH-21 and CH-23 were discovered by prospecting, and in all three cases abundant magmatic kimberlite boulders and cobbles were found at surface associated with kimberlite-type geophysical anomalies. The discovery of CH-35 and CH-38 by prospecting and core drilling, respectively, was reported on August 23, 2010. At CH-35, abundant magmatic kimberlite boulders and cobbles were found associated with a magnetic high geophysical anomaly. At CH-38, volcaniclastic kimberlite was encountered in two inclined holes drilled into a magnetic high geophysical anomaly with an estimated surface expression of one hectare.
The SRC is an independent laboratory that is accredited by the Standards Council of Canada to the ISO/IEC Guide 25 standard for diamond recovery by caustic fusion. The kimberlite samples were collected, sealed in secure containers and shipped to the SRC under strict chain of custody protocols supervised by senior Peregrine personnel.
Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%). BHP Billiton has a Second Option to earn an additional seven percent interest in the Project by electing to fund the Project to completion of a Bankable Feasibility Study. Peregrine expects to be advised regarding the Second Option election this month.
Mr. Peter Holmes, P. Geo., Peregrine's Vice President, Exploration, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the programs carried out by the Company on the Chidliak property. Mr. Holmes has reviewed this release and approves of its contents.
For further information, please contact Mr. Eric Friedland, CEO, Mr. Brooke Clements, President, Mr. Mike Westerlund, Vice President, Investor Relations or Peregrine Diamonds Investor Relations, at 604-408-8880 or at firstname.lastname@example.org.
Forward-Looking Statements: This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the proposed exploration programme, funding availability, anticipated exploration results, resource estimates, and future exploration and operating plans) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to the availability and cost of funds, timing and content of work programmes, results of exploration activities, interpretation of drilling results and other geological data, world diamond markets, future diamond prices, reliability of mineral property titles, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, any changing budget priorities of BHP Billiton, operational and infrastructure risks, and other risks involved in the diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.
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