New Microdiamond Data Supports Increased Diamond Content at CH-7 and the Potential to Add 2.5 to 3.1 Million Carats at CH-6

November 17, 2015 PDF version

Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to report new microdiamond results from the CH-7 and CH-6 kimberlites at its 100% owned Chidliak diamond project (“Chidliak”) in Nunavut, Canada. Interpretation of the CH-7 results supports an improved diamond content for the entire kimberlite pipe and confirms the exceptional diamond counts for the near-surface KIM-5 unit. The CH-6 results support continuity of the 2.58 carat per tonne (“cpt”) grade in the dominant KIM-L unit and the potential to add an additional 1 million to 1.2 million tonnes, or an additional 2.5 million to 3.1 million carats to the existing 8.57 million carat Inferred Resource at CH-6 that occurs shallower than 250 metres of depth. This tonnage is currently considered as a Target for Further Exploration (“TFFE”). The TFFE is conceptual in nature and it is uncertain whether the 2015 Diamond Resource Development Program will result in this being delineated as a Mineral Resource.

The integration of these microdiamond results with the forthcoming CH-7 bulk sample results will enable the Company to maximize the Inferred Resource statements for the CH-6 and CH-7 kimberlites.The updated Inferred Resource will be included in a planned Preliminary Economic Assessment (“PEA”), scheduled for the second quarter of 2016.

The caustic fusion assays were performed on representative drill core from the CH-6 and CH-7 kimberlite pipes by the Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”).

Mr. Tom Peregoodoff, Peregrine’s President and CEO said, “These new results confirm the potential to add significant carats to the Chidliak resource base. In 2014 we added over one million carats to the CH-6 Inferred Resource by core drilling, an increase of 15%. We believe that the results from our 2015 Diamond Resource Development Program have the potential to add significantly more to the known diamond content at the CH-6 and CH-7 kimberlites and will position us well for the upcoming PEA.”

CH-7 CAUSTIC FUSION RESULTS

Representative samples were collected from archived drill core and from 840 metres of core acquired during the summer 2015 program. The 2015 core program sampled four of the five geological units in CH-7, representing the majority of the CH-7 pipe to 250 metres depth. The caustic fusion assay results from this work are presented in Table 1. For reference, pre- 2015 caustic fusion results for CH-7 are presented in Table 2.

TABLE 1: 2015 CH-7 CAUSTIC FUSION RESULTS

Geological
Unit
Sample Weight (dry kg) Numbers of Diamonds According to Sieve Size Fraction (mm) Total Diamonds Carats
(+0.85
mm)
+0.106
-0.150
+0.150
-0.212
+0.212
-0.300
+0.300
-0.425
+0.425
-0.600
+0.60
-0.85
+0.85
-1.18
+1.18
-1.70
+1.70
-2.36
+2.36
-3.35
+3.35
-4.75
KIM-2 1262.6 543 412 249 163 81 56 20 8 2 5 0 1539 2.06
KIM-3 461.0 431 289 1