Bulk Sample Drilling on DO-27 Kimberlite Pipe, NWT, Canada, Began Feb. 25, 2005

March 7, 2005 PDF version
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
“Signed”
Eric Friedland, President

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