Chidliak Property Update: Size Of Airborne Geophysical Survey To Increase By 30 Percent After Kimberlite Discovery

August 7, 2008 PDF version
Mr. Brooke Clements, President and Mr. Eric Friedland, Chief Executive Officer of Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) are pleased to provide an update on exploration activities on the Chidliak property (“Chidliak”), Baffin Island, Nunavut, Canada. On July 23, 2008, Peregrine announced the discovery of a new kimberlite with an estimated size of six hectares, now named CH-1. This discovery has prompted BHP Billiton to request the expansion of the size of the airborne geophysical survey by over 30 percent from the original 9,000 line kilometres to approximately 12,000 line kilometres. The survey extensions will be solely funded by BHP Billiton. Chidliak is owned 100% by Peregrine subject to certain back-in rights held by BHP Billiton. If BHP Billiton elects to exercise their back-in rights in the future, they will receive a credit towards their back-in costs commensurate to the cost of the survey extension.

To date, approximately 7,200 line kilometres of the 12,000 line kilometre airborne survey have been completed and 65 kimberlite-type anomalies have been selected by Peregrine’s geophysicist in the field, including the anomaly representing the CH-1 kimberlite. Information on the CH-1 kimberlite including an image of the geophysical anomaly is available here.

Peregrine is highly encouraged with the success of the airborne survey thus far. With sixty percent of the survey complete, the presence of a new kimberlite district with good tonnage potential has been confirmed and geophysical anomalies with characteristics similar to the known pipe are present. Upon completion of the airborne survey and final detailed geophysical interpretation, the anomalies will be prioritized for ground geophysics and drilling in 2009.

The kimberlite outcrop at CH-1 is described as being magmatic material with abundant olivine macrocrysts and pyrope garnets. A sample of approximately 200 kilograms collected from the outcrop and nearby boulders has been received by Saskatchewan Research Council Geoanalytical Laboratories (“SRC”) in Saskatoon, Saskatchewan. The sample will be analyzed for its microdiamond content by caustic fusion and results are expected this month. A second kimberlite lithology was discovered as a collection of boulders interpreted to come from CH-1, suggesting the presence of at least two kimberlite phases. This material is described as being a kimberlite breccia with abundant olivine macrocrysts and other mantle minerals, notably garnet (for photographs, see the website link provided above). A sample of approximately 100 kg of this material will be shipped to SRC for microdiamond analysis. An additional one tonne sample of the CH-1 kimberlite has been collected and is awaiting shipment to SRC pending the microdiamond results from the initial samples.

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.

For further information, please contact Brooke Clements, President, Eric Friedland, CEO, or Peregrine Diamonds Investor Relations, at 604-408-8880 or at investorrelations@pdiam.com.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Peregrine’s projects and other statements that are not historical facts. When used in this document, the words such as “could,” “commonly,” “confident,” “plan,” “encouraging,” “estimate,” “expect,” “anticipated,” “intend,” “imply,” “likely,” “may,” “potential,̶