January 23, 2012
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
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.
- 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
Planned for Q1, 2012
- 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 Q2-Q3, 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 Q1, 2013 through 2014
- 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.
- 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