November 2, 2009
Peregrine Diamonds Ltd. (“Peregrine” or the “Company”) announces that
the arbitration proceedings commenced by the Company against Indicator
Minerals Inc. (“Indicator”) and Hunter Exploration Group (“Hunter”)
reported on July 9, 2009 are now scheduled to commence in May, 2010.
The arbitration was initiated by Peregrine over a dispute that arose
over the joint venture which covers a portion of the 33,100 hectare
Nanuq North property (“Nanuq North”) located in Nunavut, Canada. Under
the Nanuq North joint venture, Peregrine and Indicator each hold a 40
percent interest in 13,900 hectares of claims (“the Core Claims”).
Hunter holds a 20 percent interest in the Core Claims and Peregrine and
Indicator are required to sole-fund exploration expenditures on a 50/50
basis through the completion of a scoping study. The dispute arose when
Indicator, as operator of the Nanuq North joint venture, issued notice
to Peregrine that it intended to proceed with a 2009 exploration
programme with a budget of $2.34 million without the Company’s approval.
Under the arbitration, Peregrine sought a determination that Peregrine’s
approval was required to proceed with the proposed 2009 programme, that
Indicator’s notice to Peregrine to contribute its share of the
programme expenditures was not validly issued and an order restraining
Indicator from acting on the notice and diluting Peregrine’s interest in
the Nanuq North joint venture.
Subsequently, Indicator did not proceed with implementing the proposed
programme and Indicator and Hunter each launched a counterclaim against
the Company claiming that the letter of intent entered into by the
Company, Indicator and Hunter in May, 2005 is unenforceable.
Peregrine’s position is that the 2005 letter of intent is an enforceable
agreement and governs all exploration work conducted on the Nanuq North
property. In 2008, Peregrine and Indicator, with Indicator as
operator, successfully completed a two phase exploration programme on
the Core Claims that included an airborne geophysical survey and ground
geophysics followed by a reverse circulation drilling programme. The
diamondiferous NQN-001 kimberlite, with an estimated size of 4.5
hectares, was discovered during the reverse circulation drilling
programme. This exploration work was completed under the letter of
intent and total exploration expenditures incurred by Peregrine and
Indicator on a 50/50 basis were $685,000.
Peregrine looks forward to resolution of the dispute with Indicator and
Hunter in 2010 so that exploration work can resume in a systematic,
cost-effective manner at Nanuq North.
A 2010 drill programme is currently being planned for Peregrine’s 100%
owned, 314,000 hectare, Nanuq Project (“Nanuq”) which is located
immediately adjacent to Nanuq North. The Company discovered three
diamond-bearing kimberlites at Nanuq in 2007 after drilling only three
geophysical anomalies. In 2009, Peregrine collected 1,300 indicator
mineral samples at Nanuq in preparation for the 2010 drill programme.
More comprehensive details of the up-coming 2010 Nanuq exploration
programme will be provided as they become available.
For further information, please contact Eric Friedland, CEO, Brooke
Clements, President, or Peregrine Diamonds Investor Relations, at
604-408-8880 or at email@example.com
Forward-Looking Statements: This news release contains
forward-looking statements. All statements, other than statements of
historical fact, that address activities, events or developments that
the Company believes, expects or anticipates will or may occur in the
future (including, without limitation, statements relating to the
proposed exploration programme, funding availability, joint venture
participation, and future exploration and operating plans) are
forward-looking statements. Forward-looking statements are subject to a
number of risks and uncertainties that may cause the actual results of
the Company to differ materially f