Federal And Nunavut Governments To Fund Construction Of Iqaluit Marine Port

July 31, 2015 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or the “Company”) (TSX:PGD) is pleased to report that funding for the construction of a Marine Port and Sea Lift Facility in Iqaluit, the capital of Nunavut, has been approved by the Government of Canada and the Government of Nunavut. The announcement was made on July 30, 2015 in Iqaluit by the Honourable Leona Aglukkaq, Minister of the Canadian Northern Development Agency and Member of Parliament for Nunavut. The estimated budget for the project is $84.9 million with the federal government funding up to $63.7 million and the Government of Nunavut the remainder. The new facility will significantly reduce the time required to offload cargo, improve safety for workers and recreational boaters, and be a potential base for military ships, commercial fisherman and search and rescue operations.

Iqaluit is located approximately 120 kilometres from Peregrine’s Chidliak project (“Chidliak” or “the Project”) where the Company has declared an Inferred Mineral Resource of 8.57 million carats of diamonds and is currently conducting a resource development program designed to increase the resource base. In 2016, Peregrine expects to initiate a Preliminary Economic Assessment of the Project. If Peregrine is successful in advancing to the development of a diamond mine at Chidliak, Iqaluit will be an important supply point for mine construction and ongoing operations. A modern deep water port would dramatically improve the efficiency of and lower the cost of shipping and supply.

Mr. Tom Peregoodoff, President and CEO stated “We are very pleased to see a commitment by the Governments of Canada and Nunavut to the building of a modern port in Iqaluit. In addition to being a key component of the infrastructure required to construct and operate a diamond mine at Chidliak, the efficiencies that the port will bring will improve the quality of life and lower the cost of living for the people of Iqaluit and the communities on Baffin Island.”

At its 100 percent-owned, 582,476 hectare Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, 71 kimberlites have been discovered to date with eight being potentially economic. An Inferred Mineral Resource of 8.57 million carats in 3.32 million tonnes of kimberlite at a grade of 2.58 carats per tonne has been defined for a portion of the CH-6 kimberlite. In addition, a Target for Further Exploration of 3.20 to 4.38 million tonnes of kimberlite to a depth of 380 metres below surface has been identified at CH-6. An independent diamond valuation of a 1,013 carat parcel of diamonds from CH-6 returned an average market price of US$213 per carat and modelled prices that ranged from a minimum of US$162 per carat to a high of US$236 per carat, with a base model price of US$188 per carat. A Target for Further Exploration of 3.72 to 6.01 million tonnes to a depth of 290 metres has been defined at the CH-7 kimberlite. In 2010, a 47 tonne mini-bulk sample collected from the surface of CH-7 returned a grade of 1.04 carats per tonne. A Target for Further Exploration of 1.27 to 3.19 million tonnes to 250 metres depth has been defined at the CH-44 kimberlite pipe. The objective of the 2015 Chidliak Diamond Resource Development program is to define a resource base that would be the subject of a Preliminary Economic Assessment in 2016.

Through its recent purchase of the shares of Diamexstrat Botswana (Proprietary) Ltd., Peregrine now controls eight prospective diamond prospecting licenses in Botswana that cover 5,746 km2. Further target generation and the drill testing of four priority targets are planned for the Botswana project in 2015.

Peregrine Exploration, a wholly owned subsidiary of Peregrine Diamonds holds the 8,493 hectare Lac de Gras project in the Northwest Territories, located approximately 27 kilometres from the Diavik Diamond Mine. The nine hectare 72.1%-owned DO-27 kimberlite, located at Lac de Gras, hosts an Indicated Mineral Resource of 18.2 million carats of diamonds in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne and it is open at depth. Through comprehensive evaluation of its extensive diamond exploration databases, Peregrine Exploration, is working towards acquiring and developing new diamond properties in North America. A key asset being utilized in the search for a new Canadian diamond district is a proprietary database acquired from BHP Billiton that contains data from approximately 38,000 kimberlite indicator mineral samples covering approximately three million square kilometres of Canada.

For information on data verification, exploration information and resource estimation procedures see the technical reports entitled, “2015 Technical Report for the Chidliak Project, 66° 21’ 43” W, 64° 28’ 26” N Ba