Peregrine Announces 2011 Diamond and Metals Exploration Programmes for Qilaq and Cumberland and Confirms Precious and Base Metal Anomalies

February 15, 2011 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to announce 2011 plans for its 100%-owned Qilaq and Cumberland projects (“Qilaq” and “Cumberland” respectively) located on Baffin Island, Nunavut, Canada. At Qilaq, the Company discovered two diamondiferous kimberlites in 2010 very early in the exploration cycle for the project. This early success has prompted Peregrine to plan a programme of airborne geophysics, drilling, follow-up till sampling and prospecting for 2011. Qilaq also has strong metals potential, and at least five promising gold or base metal targets will be followed-up in 2011. At Cumberland, 35 promising gold and base metal anomalies that were discovered in 2010 will be the subject of follow-up sampling and prospecting in 2011.

Qilaq and Cumberland are located at the south end of Baffin Island in the same region as the Chidliak project (“Chidliak”), operated by Peregrine, where 50 kimberlites have been discovered to date by the Chidliak Joint Venture, with at least seven of those having characteristics consistent with economic potential in Arctic settings. Qilaq and Cumberland are 100 percent-owned by Peregrine and are not encumbered by any third party earn-in or back-in rights except for a one kilometre buffer zone at Qilaq along the boundary of Chidliak that is part of the Chidliak Joint Venture area of interest. The two kimberlites at Qilaq are outside of this buffer zone. The diamond and metals discoveries at Chidliak, Qilaq and Cumberland illustrate the potential for world class discoveries on Baffin Island and in other areas of Nunavut which are underexplored relative to other regions of Canada.

QILAQ
Background

Qilaq is 4,370 square kilometres in size, and borders Chidliak to the north, east and south. In 2010, 387 sediment samples were collected for kimberlite indicator mineral (“KIM”) processing, 476 sediment and 120 rock samples were collected for multi-element geochemistry and a 670 line-kilometre helicopter-borne electromagnetic/magnetic geophysical survey was flown. As reported on October 6, 2010, two diamondiferous kimberlites were discovered at surface in the northeastern portion of Qilaq, Q1 and Q2. The results from Q2 were especially encouraging with a 242 kg sample yielding 253 diamonds larger than the 0.106 mm sieve size including three stones larger than the 0.600 mm sieve size. In August and September 2010, a follow-up prospecting, mapping and sampling programme was conducted to evaluate 23 sites with anomalous orogenic gold or magmatic nickel-copper-cobalt-platinum group element signatures.

Of particular interest is successful metals follow-up work related to a site where a 2009 till sample contained 350 gold grains, with 80 percent of those grains described by the Overburden Drilling Management laboratory, responsible for processing the samples, as being “pristine”, suggesting they have been transported only a short distance. A rock sample collected less than 50 metres north of this site returned 0.58 grams per tonne gold and an altered rock sample associated with a gossan approximately three kilometres to the north returned 3.1 grams per tonne silver and 112 ppb palladium. Three soil samples in this area returned the following values: (1) 183 ppb gold, 2,196 ppb silver and 2.47 ppm tellurium, (2) 7,079 ppb silver and 162 ppb palladium, and (3) 3,046 ppb silver and 123 ppb palladium. In another target area, a till sample collected in 2009 returned 45 gold grains, 40 grains of sperrylite (a platinum mineral, PtAs2) and 2,060 grains of hercynite (an iron spinel). Eleven of the gold grains were classified as pristine. Additionally, the till geochemistry from a soil sample collected in 2010 one kilometre from the till sample with the sperrylite and gold grains returned 91 ppb palladium.

2011 Programme
The 2011 Qilaq exploratio