Peregrine Announces $13.5 Million, 2010 Diamond Exploration Programme At Chidliak, Baffin Island, Canada

December 21, 2009 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report that a 2010 diamond exploration programme with a budget of $13.5 million has been approved for the 9,800 square kilometre Chidliak project (“Chidliak” or “the Project”) on Baffin Island, Nunavut, Canada.

The 2010 Chidliak exploration programme has been carefully designed with two main objectives in mind, the discovery of new diamond-bearing kimberlites by the drilling and prospecting of high priority geophysical anomalies and further sampling of kimberlites that exhibit characteristics consistent with economic potential. The 2010 work will be executed in two phases, a spring phase lasting from mid-March to the end of June and a summer phase lasting from the beginning of July to mid-September. The spring phase will include an airborne geophysical survey, core drilling on ice of lake-based kimberlite targets and a large ground geophysics programme. The summer phase will principally consist of the drilling of high priority kimberlite targets using two core rigs, the collection of mini-bulk samples from the CH-6 and CH-7 kimberlites, additional till sampling, ground geophysics and intensive ground prospecting.

Mr. Brooke Clements, President of Peregrine stated “We are confident that this $13.5 million exploration programme will add significant value to the Chidliak project in 2010. In 2008 and 2009, we highlighted the real possibility of Chidliak becoming a world class Canadian diamond mining district by discovering 16 kimberlites with at least three of these displaying characteristics consistent with economic potential in arctic settings. The technical and operational knowledge gained and the infrastructure established at Chidliak in 2009 will allow us to increase our effectiveness in prioritizing targets for drilling and in conducting a cost-effective programme next year. We are planning to generate more than twice as much exploration data as we did in 2009 by way of drilling, mini-bulk sampling, airborne and ground geophysics, prospecting and laboratory analyses. We are confident that the 2010 results will set the stage for moving Chidliak to the next level in the evaluation of diamond deposits, which is the bulk sampling of multiple kimberlites to obtain parcels of diamonds large enough for reliable diamond valuations.”

Peregrine will be the operator of the 2010 exploration programme which will include the following key components:
  • Drilling. Approximately 11,000 metres of drilling will be completed utilizing two core rigs; for reference, a total of 3,984 metres was drilled in 2009. High priority kimberlite-type geophysical targets will be drill tested using NQ (4.8 cm diameter) core. The spring drilling programme will commence in April utilizing one drill rig on at least five lake-based geophysical anomalies. The first two anomalies scheduled for drilling are situated approximately 35 kilometres north of the nearest known kimberlites, CH-6 and CH-10. These two anomalies are approximately 200 metres apart with each having an estimated surface expression greater than one hectare as determined by ground geophysics. Geochemistry studies of kimberlite indicator minerals recovered from till samples collected down-ice of these two anomalies in 2009 suggest good diamond potential. The summer drill programme will commence in early July and two drill rigs will be used to test up to 30 high priority land-based geophysical targets.
  • Mini-Bulk Sampling. Mini-bulk samples will be collected from the CH-6 and CH-7 kimberlites in an effort to obtain an initial parcel of approximately 60 carats of commercial-sized (+0.85 mm sieve size) diamonds from each pipe. A representative sample of approximately 12 tonnes will be extracted from CH-6 by drilling HQ (6.4 cm diameter) core. A sample of approximately 50 tonnes will be collected by surface excavation from CH-7. In 2009, 569 and 221 kilogram samples collected from CH-6 and CH-7 respectively yielded 4.58 and 0.70 carats of commercial-sized diamonds.
  • Airborne Geophysics. A helicopter-borne airborne geophysical survey will commence in March 2010. The survey will be designed to cover kimberlite indicator mineral anomalies not covered by the 2008 survey. The exact size and boundaries of the survey will be determined after all results from the 1,273 kimberlite indicator mineral samples collected in 2009 are received in February, 2010.
  • Prospecting and Indicator Mineral Sampling. Two, two-person crews will be devoted to prospecting and indicator mineral sampling in the summer phase of the programme. Prospecting has proven to be a