1.15 Carat Diamond Recovered From 840 Kilogram Microdiamond Sample Collected From Five Hectare CH-31 Kimberlite

October 29, 2010 PDF version

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Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report the recovery of a 1.15 carat diamond from an 840 kilogram microdiamond sample collected from the estimated five hectare CH-31 kimberlite on the 9,800 square kilometre Chidliak project (“Chidliak” or “the Project”). Chidliak is located on south Baffin Island, approximately 120 kilometres from Iqaluit, the capital of Nunavut, Canada. The 840 kilogram sample yielded a total of 233 diamonds larger than the 0.106 mm sieve size, including five diamonds larger than the 0.850 mm sieve size which weigh a total of 1.39 carats. The CH-31 kimberlite is located approximately four kilometres southeast of the CH-7 kimberlite and approximately five kilometres southeast of the CH-1 kimberlite.

Mr. Eric Friedland, CEO of Peregrine, stated “These diamond results are very significant because CH-31, at five hectares, is the largest kimberlite discovered at Chidliak to date and the fifth kimberlite with economic potential in arctic settings. CH-31 is located less than 5 kilometres from CH-1 and CH-7, two of the other kimberlites with economic potential at Chidliak. More exploration work at CH-31, which could include a mini-bulk sample, is being considered for next year.”

The 840 kilogram sample consisted of four distinct sub-samples. Samples CH-31A and CH-31B consisted of surface material collected from the interpreted south and north edges of the kimberlite, respectively. Samples CH-31C and CH-31D were comprised of drill core collected from an angle hole drilled to a depth of 417 metres, from depths of six metres to 328 metres and 328 metres to 416 metres, respectively. CH-31 is comprised of volcaniclastic kimberlite with varying amounts of Paleozoic carbonate and basement xenoliths. Occasional mantle xenoliths were recognized including peridotites and eclogites. On preliminary inspection, CH-31 appears to be a uniform kimberlite body and distinct kimberlite phases are not recognizable.

The following table summarizes caustic fusion diamond results from the CH-31 kimberlite. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”).

SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR SAMPLES FROM THE CH-31 KIMBERLITE

Sample

Sample
Weight (kg)

Numbers of Diamonds According to Sieve Size Fraction (mm)

Total
Diamonds

Carats
(+0.85
mm size)

+0.106
-0.150

+0.150
-0.212

+0.212
-0.300

+0.300
-0.425

+0.425
-0.600

+0.600
-0.850

+0.850
-1.180

+1.180
-1.700

+1.700
-2.360

+2.360
-3.350

+3.350
-4.750

CH-31A

194

56

21

12

6