March 18, 2014
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is
pleased to announce that the 2014 exploration and diamond resource
definition program at its 100 percent-owned Chidliak diamond project
(“Chidliak” or “the Project”), on Baffin Island, Nunavut, Canada, has
commenced. The primary objective of the 2014 program will be to advance
3 to 5 kimberlites showing economic potential to the bulk sample stage
and to commence logistical preparations for the 2015 bulk sampling
program. The objective of the 2015 bulk sampling program will be to
confirm sufficient diamond resources to enable commencement of a
pre-feasibility study for Baffin Island’s first diamond mine. The
approved budget for the 2014 program is $7,000,000.
A bulk sample that was collected from the CH-6 kimberlite in 2013 has
confirmed the economic potential of this kimberlite. Two additional
kimberlites, CH-7 and CH-44, have had sufficient diamond testing to be
ready for bulk sampling in 2015. Peregrine plans to advance additional
kimberlites to the bulk sample stage in 2014 by completing a program of
core drilling on these pipes. In addition, thorough exploration will be
focused on discovering new kimberlites with economic potential in a
priority area that includes the CH-6, CH-7 and CH-44 kimberlites. The
2014 program is expected to be completed in September.
BULK SAMPLE PREPARATION
KIMBERLITE TARGET GENERATION AND TESTING
- Core Drilling. A minimum of 2,500 metres of core drilling
will be completed on key kimberlites including CH-6, CH-7 and CH-44
commencing in early July. Results from the core drilling, including
microdiamond analyses and geologic models, will be incorporated into the
final design of the 2015 bulk sampling program.
- Mobilization of Bulk Sample Equipment. A large diameter
RC drill rig specifically designed for Chidliak, and supporting
supplies and equipment is scheduled to be mobilized to Iqaluit by
sealift in September in preparation for 2015 bulk sampling.
- Heli-portable Reverse Circulation (“RC”) Drilling. Grid
drilling will be completed over several kimberlites with economic
potential, including CH-6, CH-7 and CH-44, to accurately map the
overburden depth and prepare for future trenching programs. The RC
drilling will commence in April and will continue through the summer
- Ground geophysics. In preparation for drill testing, ground
geophysical surveys will be completed over priority geophysical
anomalies and in areas with unexplained kimberlite indicator minerals
and kimberlite float.
- Heli-portable RC Drilling. Commencing in April, high
priority kimberlite targets will be drilled. Priority areas targeted
for drilling include the String of Pearls, just north of CH-6, Area B,
located 15 kilometres east of CH-6 where high-interest kimberlite float
has been discovered and anomaly 645, a two hectare high priority
geophysical anomaly located 13 kilometres southwest of CH-6.
- Core Drilling. A minimum of 1,500m of core drilling of high priority kimberlite targets will be completed this summer.
- Prospecting and Heavy Mineral Sampling. Ground truthing
and prospecting is scheduled for approximately 20 targets in the
priority area that includes CH-6, CH-7 and CH-44. In addition,
approximately 400 heavy mineral samples will be collected in high
priority areas. Prospecting and heavy mineral sampling will commence in
As reported on February 26, 2014, a 404 tonne bulk sample collected from
the surface of the CH-6 kimberlite in 2013 returned a grade of 2.58
carats per tonne for commercial-size diamonds larger than the 1.18 mm
square mesh sieve size. An average price of US $213 per carat for a
1,013 carat diamond parcel was determined by WWW International Diamond
Consultants. Peregrine expects to declare the first resource for CH-6
in the second quarter of 2014. As reported on November 22, 2010, a 47.2
tonne surface sample collected from CH-7 returned a grade of 1.04
carats per tonne with the largest diamond being 6.53 carats in size. As
reported on November 21, 2011, initial microdiamond results from CH-44
showed a coarse diamond size distribution. A presentation with details
on the CH-6 bulk sample, new exploration targets and Peregrine’s 2014
and 2015 strategy is available here
Dr. Herman Grütter, Professional Geologist and Peregrine’s Program
Manager, Chidliak Exploration, is a Qualified Person and is responsible
for the design and conduct of the exploration programs at Chidliak. Mr.
Alan O’Connor, Peregrine’s Program Manager, Chidliak Resource
Evaluation, is a Qualified Person and is responsible for the design and
conduct of bulk sampling programs at Chidliak.
Messrs. Grütter and O’Connor have reviewed this release and approved of its contents.
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