February 8, 2005
Mr. Eric Friedland, President of Peregrine Diamonds Ltd, Dr. Stewart
Blusson, President of Archon Minerals Ltd., Mr. Adolf Petancic,
President of Dentonia Resources Ltd., Mr. James McInnes, President of
Horseshoe Gold Mining Inc., Mr. George Stewart, President of Kettle
River Resources Ltd., and Mr. Howard Bird, Vice-President, Exploration
of SouthernEra Diamonds Inc., are pleased to announce that a 200 tonne
bulk sampling program on the DO-27 kimberlite pipe
located in the N.W.T., Canada, will begin in mid-February.
The Tli Kwi Cho kimberlite complex has a total exposed surface area of 16 hectares
, one of the largest in the NWT.
It consists of multiple vents and intervening hypabyssal sills. The
Northwestern Lobe is referred to as DO-18; and DO-27, with a surface
expression of 9 hectares,
is the Southern Lobe of the Tli Kwi Cho kimberlite complex.
A re-interpretation of the geology of this complex, suggests that the
main DO-27 Southern Lobe actually consists of two vents - a smaller
subsidiary northeastern vent and a main vent. The drilling of 16 wide
spaced core holes in the Southern Lobe by Kennecott Canada Inc. in 1993
identified a higher grade core zone to the main vent with lower grades
in the periphery of the main vent, the northeast subsidiary vent and in
hypabyssal sills. A 1994 underground bulk sample of 3,000 tonnes
primarily (>90%) sampled the subsidiary vent and some hypabyssal
kimberlite sills; it did not test the main vent of the Southern Lobe, which will now be sampled.
The evaluation of the diamonds recovered in 1994 was primarily based
on stones obtained from the subsidiary lobe and the hypabyssal phases,
and therefore the core of the main southern lobe remains untested to date, and hence the rationale for the bulk sample.
The bulk sample will be extracted via a program of 14 inch diameter RC drilling
conducted by Midnight Sun Drilling Co.
of Whitehorse, Yukon whose previous clients include DeBeers and Kennecott.
The bulk sample is scheduled to be processed at BHP Billiton’s
Sample Plant at the Ekati™ Diamond Mine
beginning in mid to late March. The anticipated processing time is two to three weeks.
Access to the DO-27 pipe, located 23 km southeast of the Diavik™ Diamond
Mine, is by way of an 11-kilometer winter spur road off of the main
Tibbitt to Contwoyto ice road. The spur road and drill pads are being
built and maintained by Nuna Logistics
of Yellowknife. A 25-person camp is being built on site at DO-27 by Discovery Mining Services
of Yellowknife. The total estimated budget for the program, including
RC and core drilling, sampling, transport, campsite, processing, diamond
evaluation and contingency, is approximately CDN$ 4.9 Million
which approximately CDN$ 680,000 may be contributed, pro rata, by all
project partners, subject to their final approval, in the ratio of their
respective interest in the project after Peregrine’s earn-in. Upon
completion of this 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% (a consortium
consisting of Dentonia 6.667%, Horseshoe 6.667%, and Kettle River
6.667%), and SouthernEra 4.9%,
all subject to a 1.3% Royalty.
AMEC Americas Limited
in Vancouver will be auditing the drilling and sampling protocols
as well as providing quality assurance/quality control audits
on the actual drilling, sampling, and evaluating procedures in order to
insure that the entire program will be performed to the highest
possible industry standards. Mr. Howard Coopersmith
of Coopersmith & Associates, Colorado, will also be providing audits
on the protocols
Dr. Jennifer Pell, P.Geo., is the Qualified Person that will be
overseeing the entire program, and Mr. Derrick Strickland, P.Geo., is
the Project Manager.
More information will be provided as the bulk sampling program progresses.
On behalf of the Board of Directors
Peregrine Diamonds Ltd.