September 23, 2010
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to
report a coarse diamond size distribution from a 238.9 kilogram surface
sample collected from the CH-28 kimberlite on the 9,800 square kilometre
Chidliak project (“Chidliak” or “the Project”) on Baffin Island,
Nunavut, Canada. The sample yielded 174 diamonds larger than the 0.106
mm sieve size, including five diamonds larger than the 0.850 mm sieve
size which weigh a total of 0.196 carats. The CH-28 kimberlite pipe,
estimated at two hectares in size, is located at the north end of the
Chidliak diamond district which currently includes 49 additional
kimberlites and extends approximately 70 kilometres north-south and 40
The following table summarizes caustic fusion diamond results from the
CH-28 kimberlite, the first diamond results from the 2010 programme.
The analyses were performed at the Saskatchewan Research Council
Geoanalytical Laboratories (“the SRC”).
SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR A SAMPLE FROM THE CH-28 KIMBERLITE
|Numbers of Diamonds According to Sieve Size Fraction (mm)
Of the five diamonds larger than the 0.850 mm sieve size, three were
classified by the SRC as having an off-white color, one was grey and one
was yellow. The largest diamond was a 0.11 carat off-white,
Mr. Brooke Clements, President of Peregrine stated “With these highly
encouraging initial diamond results, CH-28 is currently the fourth, and
largest, kimberlite pipe at Chidliak that has economic potential in
arctic settings, joining CH-1, CH-6 and CH-7. We are confident that
this Project will continue to deliver kimberlites with economic
The discovery of the CH-28 kimberlite by prospecting was announced on
August 4, 2010. Abundant kimberlite boulders and cobbles were
discovered at surface within a depression having a diameter of 160
metres that corresponds with a magnetic-high geophysical anomaly.
Kimberlite boulders over one metre in size are present. The observed
kimberlite is volcaniclastic with limestone xenoliths and abundant
coarse-grained kimberlite indicator minerals (“KIMs”) including pyrope
garnet, ilmenite and chrome diopside. CH-28 is located near the CH-17
kimberlite, which is the northern-most of two high-priority magnetic
anomalies situated under a lake, each with an estimated surface
expression of at least one hectare, as announced on May 20, 2010.
The northern half of the Project, an area that includes the CH-28 and
CH-17 kimberlites, will be a focus of exploration for Peregrine in 2011.
This area hosts several unexplained high-interest KIM anomalies and
currently over ten high-priority geophysical anomalies. Exploration in