Peregrine Announces 2012 Chidliak Program

January 23, 2012 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) has completed its analysis to determine the most efficient way to advance the 8,580 square kilometre Chidliak project (“Chidliak” or “the Project”), located 120 km from Iqaluit, Baffin Island, Nunavut, Canada. This review was prompted by the Company’s opportunity to increase its interest in the Project to 100% by acquiring BHP Billiton’s 51% interest, as announced on December 20, 2011. Planned work under the 2012 program will consist of three components: continued execution of bulk sample related activities, continued pre-bulk sample delineation drilling on key kimberlites, and ongoing exploration to discover more diamondiferous kimberlites.

Mr. Eric Friedland, CEO of Peregrine, commented “Working with the local communities, we are committed to develop Baffin Island’s first diamond mine as rapidly as possible in a safe and environmentally sensitive manner. The first significant step towards this goal is the initial bulk sampling of key kimberlites to obtain diamond parcels for valuation. Upon receipt of positive valuation results, we would advance the project into pre-feasibility by obtaining larger diamond parcels and by completing initial engineering work. In addition, as there are many geophysical anomalies and a number of unresolved kimberlitic indicator mineral dispersions at Chidliak that need to be fully investigated, we are confident that more kimberlites will be discovered this year.”

REVERSE CIRCULATION (“RC”) BULK SAMPLING
Preparations for bulk sampling began in mid-2011 with the selection of a RC drilling contractor, the commencement of the modification of the bulk sample RC drill rig, the procurement and mobilization of support equipment and fuel to Iqaluit, and the submission of applications for the land use permit and water license amendments necessary for certain components of the bulk sample program.

Completed
  • The procurement and mobilization of equipment including the Morooka MST3000VD, Caterpillar Challenger 835C, Sno-Cat BR 350, two Caterpillar wheeled loaders, fuel tanks, water tanks, drill casing and steel sleds for transporting equipment and the bulk sample along groomed trails is completed. The Morooka, Caterpillar and Sno-Cat are equipped with low ground pressure tracks. This equipment was delivered to Iqaluit by Sealift last October.
  • Fuel and bulk supplies were delivered to Iqaluit by Sealift.
  • The RC drill contract was awarded to Cooper Drilling LLC. of Monte Vista, Colorado. Modification of the specialized, bulk sample RC drill rig to suit Chidliak conditions is well advanced.
  • The contract to provide equipment and logistical support for the program was awarded to Nuna Logistics Ltd.

Images of the equipment can be viewed here.

In Progress
  • Amendments to Peregrine’s existing land use permit and water license are required to conduct key components of the bulk sample program including utilization of certain access trails, drill rig mobilization and recovery and transportation of bulk sample material. The amendment applications were submitted by Peregrine in September, 2011 and are currently going through the Nunavut Impact Review Board screening process. Upon successful completion of this screening, Aboriginal Affairs and Northern Development Canada and the Nunavut Water Board are expected to issue the amendments this quarter.
Planned for Q1, 2012
  • Pending receipt of the land use permit amendments described above, the Morooka MST3000VD, Caterpillar Challenger 835C and Sno-Cat BR 350 will be mobilized overland to site and transportation routes between kimberlites and aircraft landing areas will be driven to ensure safe and efficient operations during bulk sampling.
Planned for Q2-Q3, 2012
  • Commissioning of the RC drill equipment, including the drilling of a large diameter hole to depths of over 200 metres to verify performance and reliability, will be followed by mobilization of the drill rig and associated equipment to Iqaluit by Sealift.
Planned for Q1, 2013 through 2014
  • Preparation of an ice-based airstrip and transportation of the bulk sample drill rig and associated equipment to site from Iqaluit by Hercules aircraft is scheduled for early 2013.
  • Bulk sample collection from key kimberlites is scheduled to commence in February 2013, and, subject to