November 28, 2017
VANCOUVER, CANADA – Peregrine Diamonds Ltd. (TSX:PGD) (“Peregrine” or “the Company”) is pleased to report microdiamond results from the CH-6 kimberlite at its 100% owned Chidliak diamond project (“Chidliak”) in Nunavut, Canada. The 2017 resource expansion drill program at the CH-6 kimberlite has confirmed that the high-grade CH-6 kimberlite extends from surface to 540 metres below surface (“mbs”), an additional 280 metres below the 260-metre depth of the current CH-6 Inferred Resource announced on April 7, 2017. The CH-6 kimberlite remains open below 540 mbs, the current limit of drilling.
Caustic fusion microdiamond results released today from the 2017 drill program match well with pre-2017 microdiamond results for the KIM-L High Grade (“KIM-L.HG”, estimated at 4.16 carats per tonne (“cpt”) in the Inferred Resource) and the KIM-L Normal Grade (“KIM-L.NG”, estimated at 2.12 cpt in the Inferred Resource) kimberlite units. The 2017 diamond sample data below 260 metres have a very similar grade and size frequency distribution as the kimberlite contained in the Inferred Resource. The results of the 2017 program will form the basis of a revised CH-6 resource estimate, with the expectation of extending the categorized resource base from a depth of 260 mbs to 540 mbs.
Tom Peregoodoff, Peregrine’s President and Chief Executive Officer, commented: “The results we are releasing today confirm that the high-grade CH-6 kimberlite extends well below the current resource base of 260 metres. The microdiamond data from this years’ drilling clearly demonstrates that not only is the grade of this newly-defined extension of the CH-6 kimberlite very similar to that which we have previously defined, but also that we can expect the same macro diamond size distribution, which has important implications for future diamond valuations.
The Peregrine team is now using this information as the basis for a new resource statement due in mid-February, in which we expect to add significantly to the overall diamond content of the CH-6 kimberlite, especially given the apparent increase in the KIM-L.HG unit which has an estimated Inferred Resource grade of 4.16 cpt. In addition, the presence of a very rare green diamond bodes well for the presence of other rare, coloured diamonds that could have a significant impact on the overall average prices eventually received for diamonds recovered from the Chidliak project.”
DIAMONDS RECOVERED FROM CH-6 BY CAUSTIC FUSION
As reported on September 21, 2017, 10 core holes drilled in the 2017 summer season intersected a total of 2,450 metres of CH-6 kimberlite. Microdiamond assay results for all 10 core holes of CH-6 kimberlite are presented in Table 1, and represent all the kimberlite drilled in the 2017 season. Assay results for prior years are presented in Table 2, for comparative purposes. All assays were completed by caustic fusion at the Saskatchewan Research Council Geoanalytical Laboratories (“SRC”).
The 2017 caustic fusion results support a coarse stone size distribution for all material sampled and reproduce diamond recovery rates for the previously defined KIM-L.HG, KIM-L.NG, and KIM-C units at the CH-6 kimberlite (Tables 1 and 2). The Company reported +1.18 millimetres estimated resource grades of 4.16 cpt for KIM-L.HG and 2.12 cpt for KIM-L.NG on April 7, 2016. KIM-L.HG contains approximately double the amount of diamonds in each sieve class than occur in KIM-L.NG. The SRC recovered 213 diamonds weighing 9.32 carats in commercial diamond sizes at +0.85 millimetres from the 1,936 kilograms of sample submitted in 2017, with KIM-L.HG reporting 2.1 times higher +0.85 millimetre diamond content than KIM-L.NG (Table 1). Grade-size plots of 2017 and prior years’ caustic fusion results can be viewed here: https://www.pdiam.com/assets/docs/2017-11-chidliak-2017-microdiamond-results.pdf
TABLE 1: 2017 CH-6 CAUSTIC FUSION RESULTS