March 7, 2005
Mr. Eric Friedland, President of Peregrine Diamonds Ltd (“Peregrine”),
is pleased to announce that the extraction of a 200 tonne bulk sample
using a 14-inch diameter Reverse Circulation (RC) drill rig began at the
DO-27 kimberlite pipe, NWT, Canada, on February 25, 2005.
The program will consist of 5 drill holes, to be drilled at and around
the centre of the Southern Lobe of the pipe, to an average depth of 250
meters. The kimberlite material will be processed at BHP Billiton’s
Ekati™ Diamond Mine from mid to the end of March, in order to determine
macro grade and diamond quality. The cost of the bulk sample program
will be borne entirely by Peregrine in order to increase its ownership
in the project from 38.475% to 54.475% plus Operatorship.
In addition, Peregrine, DHK Diamonds Inc., Archon Minerals Ltd., and
SouthernEra Diamonds Inc., have agreed, following the extraction of the
200 tonne sample, to conduct a jointly funded N.Q. sized core drilling
program, as close as possible to the 5 RC holes. Three holes will be
drilled to a depth of 250 meters, and 2 holes to a depth of 600 meters,
at an estimated cost of Cdn.$500,000.
It has been noted that some of the kimberlite pipes in the Northwest
Territories have a marked increase in grade with depth and the two 600
meters holes will explore this possibility for DO-27. It should also be
noted that none of diamond core holes drilled in DO-27 by Kennecott
Canada Exploration in 1993 went beyond a depth of -215 meters and that
Kennecott’s underground bulk sample drift itself, in 1994, leveled out
at -100 meters below the surface, or only -50 meters below overburden,
and never entered the higher grade portion of the Southern Lobe. The
bulk sample, coupled with the N.Q. core drilling, will now properly test
the Southern Lobe.
This N.Q. core, initially, will likely be stored and logged, pending the
analysis of the sample, before being subjected to caustic fusion and
micro diamond grade analysis.
Since this present bulk sample will be limited to 200 tonnes, this
additional information is required to construct a statistical model of
the DO-27 kimberlite pipe to assess its commercial viability and to
assist in further exploration. A similar methodology appears to have
been employed by DeBeers and Kensington at their Fort a la Corne
kimberlites, where a recently completed exploration program on the No.
140/141 pipe consisted of five core and five large diameter RC holes.
(See Stockwatch Eblast, February 22, 2005).
On Behalf of the Board of Directors
Eric Friedland, President
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