May 17, 2016
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to announce that core drilling has commenced on the 100% owned Sikwane Project in Botswana. Sikwane is located approximately 50 kilometres east of Gaborone, the capital of the Republic of Botswana.
SIKWANE KIMBERLITE DRILL PROGRAM
The Sikwane prospecting licence covers 453 km2 and contains nine kimberlites discovered through drilling by De Beers in 1997.A thorough assessment of relinquishment reports held at the Botswana Geological Survey shows that De Beers drilled percussion holes targeted on detailed Kimberlite Indicator Mineral (“KIM”) anomalies with limited ground geophysics support. Interpretation of available KIM garnet and ilmenite chemistry shows that the Sikwane kimberlites contain diamond-compatible KIMs and the kimberlites have moderate to high diamond potential. Diamonds have been recovered from surface samples and from down-hole samples at the Sikwane kimberlites, although diamond abundance and size distribution data are not available. De Beers recovered limited core from the drilling program and due to the limitations of percussion drilling, the geological relationships between kimberlite and country rock granite are unresolved.
Core drilling of five of the Sikwane kimberlites is planned. The program is designed to resolve the kimberlite-granite relationships and collect carefully controlled kimberlite samples for microdiamond and KIM analysis. Five vertical core holes of 100 metres each are planned.
The total budget for the program is CDN$140,000
About Peregrine Diamonds
Peregrine is a TSX listed diamond exploration and development company with assets located in northern Canada and Botswana.
Peregrine’s core asset is its’ 100 percent-owned, 513,249 hectare Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut where 71 kimberlites have been discovered to date with eight being potentially economic. An Inferred Mineral Resource of 11.39 million carats in 4.64 million tonnes of kimberlite at an average grade of 2.45 carats per tonne has been defined for a portion of the CH-6 kimberlite. In addition, a Target for Further Exploration (“TFFE”) of 2.34 to 3.75 million tonnes of kimberlite to a depth of 380 metres below surface has been identified at CH-6. An independent diamond valuation by WWW International Diamond Consultants, of a 1,013 carat parcel of diamonds from CH-6 returned an average market price of US$213 per carat and modeled prices that range from a minimum of US$162 per carat to a high of US$236 per carat, with a base model price of US$188 per carat (all using the February 24, 2014 price book). An Inferred Mineral Resource of 4.23 million carats in 4.99 million tonnes of kimberlite at an average grade of 0.85 carats per tonne has been defined for a portion of the CH-7 kimberlite. In addition, TFFE of 0.90 to 2.36 million tonnes for a depth range of 240-320 metres has been estimated for the CH-7 kimberlite. An independent diamond valuation by WWW International Diamond Consultants, of a 735.75 carat parcel of diamonds from CH-7 returned an average market price of US$100 per carat and modelled prices that ranged from a minimum of US$94 per carat to a high of US$155 per carat, with a base model price of US$114 per carat (all using the February 1, 2016 price book). A TFFE of 1.27 to 3.19 million tonnes to 250 metres depth has been estimated for the CH-44 kimberlite pipe. The TFFE’s identified above are conceptual in nature and are not Mineral Resources. It is uncertain whether further exploration will result in any of these tonnages being delineated as Mineral Resources.
Peregrine holds eleven diamond prospecting licenses in Botswana that cover 661,330 hectares.
Peregrine also controls the 8,493 hectare Lac de Gras project in the Northwest Territories, located approximately 27 kilometres from the Diavik Diamond Mine. The nine hectare 72.1%-owned DO-27 kimberlite, located at Lac de Gras, hosts an Indicated Mineral Resource of 18.2 million carats of diamonds in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne and it is open at depth.
For information on data verification, exploration information and resource estimation procedures see the technical reports entitled, “2015 Technical Report for the Chidliak Project, 66° 21’ 43” W, 64° 28’ 26” N Baffin Region, Nunavut” dated February 23, 2015, and “Peregrine Diamonds Ltd. Lac de Gras Project Northwest Territories, Canada NI 43-101 Technical Report” dated July 15, 2014, both of which are available on SEDAR and the Company’s website.
For further information, please visit www.pdiam.com or contact Mr. Eric Friedland, Executive Chairman, Mr. Tom Peregoodoff, President and CEO, Dr. Herman Grütter, Vice President, Technical Services, or Peregrine Diamonds Investor Relations, at 604-408-8880 or at firstname.lastname@example.org.