February 24, 2011
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to
report a coarse diamond size distribution in a 74.4 kilogram sample
collected by core drilling from the CH-20 kimberlite located on the
8,580 square kilometre Chidliak project (“Chidliak” or “the Project”),
Baffin Island, Nunavut, Canada. The sample yielded 96 diamonds larger
than the 0.106 mm sieve size, including two diamonds larger than the
0.850 mm sieve size which weigh a total of 0.036 carats. CH-20 is
located approximately 100 metres north of the CH-6 kimberlite and 250
metres south of the CH-10 kimberlite. As announced on December 6, 2010,
a 14.11 tonne mini-bulk sample collected from CH-6 returned an average
grade of 2.84 carats per tonne. As announced on November 12, 2009, a
111.4 kilogram sample collected from CH-10 yielded 152 diamonds larger
than the 0.075 mm sieve size including two stones larger than the 0.600
mm sieve size.
The CH-20 and CH-10 kimberlites are represented by two of four magnetic
anomalies referred to as the String of Pearls that are aligned along a
600 metre trend in a north-northwest direction from CH-6. Two of these
magnetic anomalies and the associated structural trend have yet to be
drill tested. The String of Pearls as well as other associated magnetic
low anomalies located several hundred metres to the east, present an
opportunity to discover significant additional kimberlite tonnage in the
vicinity of CH-6. For an image showing the String of Pearls and CH-6
CH-6 and the String of Pearls, along with five additional
diamondiferous kimberlites with economic potential in Arctic settings,
are located within an area that has an eight kilometre radius, the
Southern Focus Area.
The following table summarizes caustic fusion diamond results from the
CH-20 kimberlite. The analyses were performed at the Saskatchewan
Research Council Geoanalytical Laboratories (“the SRC”).
SUMMARY OF CAUSTIC FUSION RESULTS FOR SAMPLES FROM THE CH-20 KIMBERLITE
||Sample Weight (kg)
||Numbers of Diamonds According to Sieve Size Fraction (mm)
The two diamonds larger than the 0.850 mm sieve size were classified by
the SRC as being a 0.022 carat off-white, transparent, distorted crystal
and a 0.014 carat white/colourless, transparent tetrahexahedron.
As reported on July 19, 2010, CH-20 was discovered by drilling an
inclined hole across a magnetic low anomaly, kimberlite was intersected
from a depth of 23 to 44 metres. The kimberlite is described as being
olivine-rich, black macrocrystic kimberlite.
The SRC is an independent laboratory that is accredited by the Standards
Council of Canada to the ISO/IEC Guide 25 standard for diamond recovery
by caustic fusion. The kimberlite samples were collected, sealed in
secure containers and shipped to the SRC under strict chain of custody
protocols supervised by senior Peregrine personnel.
Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%).
Mr. Peter Holmes, P. Geo., Peregrine’s Vice President, Exploration, is a
Qualified Person under NI 43-101 and is responsible for the design and
conduct of the programmes carried out by the Company on the Chidliak
project. Mr. Holmes has reviewed this release and approves of its