Peregrine Announces Coarse Diamond Distribution in CH-44 Kimberlite at Chidliak

November 25, 2010 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report a coarse diamond size distribution for a 312.2 kilogram sample of reverse circulation (“RC”) drill cuttings collected from the CH-44 kimberlite on the 9,800 square kilometre Chidliak project (“Chidliak” or “the Project”) on Baffin Island, Nunavut, Canada. The sample yielded 910 diamonds larger than the 0.106 mm sieve size, including nine diamonds larger than the 0.850 mm sieve size which weigh a total of 0.45 carats. The CH-44 pipe is the sixth kimberlite at the Project with economic potential in Arctic settings.

In addition to CH-44, the Company has also received caustic fusion results demonstrating that five more kimberlites at Chidliak, CH-19, 21, 23, 35 and 38, are diamondiferous. To date, Peregrine has discovered 50 kimberlites at Chidliak, with 34 of those being discovered in 2010. Microdiamond results have been reported for 24 of the 50 kimberlites, and 23 are diamondiferous. Microdiamond results for additional kimberlites discovered in 2010 are expected by year end.

The following table summarizes caustic fusion diamond results from the CH-44 kimberlite. 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-44 KIMBERLITE

Sample
Weight
(kg)
Numbers of Diamonds According to Sieve Size Fraction (mm) Total
Diamonds
Carats
(+0.850
mm size)
+0.106
-0.150
+0.150
-0.212
+0.212
-0.300
+0.300
-0.425
+0.425
-0.600
+0.600
-0.850
+0.850
-1.180
+1.180
-1.700
+1.700
-2.360
+2.360
-3.350
312.2 431 208 146 72 31 13 6 2 0 1 910 0.45

Of the nine diamonds larger than the 0.850 mm sieve size, two were classified by the SRC as being white/colourless, five were off-white and two were brown. The largest diamond was a 0.325 carat off-white, transparent octahedron.

Brooke Clements, President of Peregrine stated “We are very encouraged by these results from CH-44, yet another kimberlite at Chidliak with a strong coarse diamond size distribution and economic potential in Arctic settings. This kimberlite clearly requires more work in 2011, including core drilling and mini-bulk sampling. The CH-44 pipe is located in what we now refer to as the ” Southern Focus Area”, an area with an eight kilometre radius that currently hosts five kimberlites with economic potential: CH-1, CH-6, CH-7, CH-31 and CH-44.”

The discovery of the CH-44 kimberlite by RC drilling was announced on September 16, 2010. The CH-44 pipe is located one kilometre west of CH-31 and 2.5 kilometres south of CH-7. One vertical hole was drilled into a magnetic high geophysical anomaly with an estimated surface expression of 0.9 hectares and kimberlite was intersected from two to 35 metres, with the hole being terminated in kimberlite. Dry RC cuttings of kimberlite were collected directly into 20 litre pails without screening and were security-sealed prior to shipment to the SRC. The CH-44 pipe is described as an olivine macrocrystic kimberlite (macrocrysts to 1.4 cm) with abundant fresh kimberlite indicator minerals including garnet, chrome-diopside and ilmenite. Paleozoic carbonate rock fragments and basement xenoliths