Peregrine Announces Completion of the CH-6 Kimberlite Bulk Sample Program and Finalization of the 2013 Chidliak Work Program

June 3, 2013 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to announce the successful completion of the CH-6 kimberlite bulk sample program on the Company’s 100 percent-owned Chidliak project (“Chidliak” or “the Project”) located on Baffin Island, 120 kilometres from Iqaluit, the capital of Nunavut, Canada. As announced on April 23, 2013, Peregrine exceeded its CH-6 bulk sample objective of 200 tonnes with a total of 508 wet tonnes of kimberlite collected. The increased size of the bulk sample is expected to deliver a larger parcel of rough diamonds which will provide higher confidence in future diamond valuations. The bulk sample will be shipped from Iqaluit this summer and is scheduled to be processed for diamond recovery beginning in the fourth quarter. The bulk sample program was funded and operated by Peregrine.

Field operations at Chidliak will resume in June with the commencement of the summer program, which, as reported on January 28, 2013, is budgeted at approximately $2.0 million, and will be funded and operated by De Beers Canada Inc. (“De Beers”). As reported by Peregrine on September 5, 2012, the Project is subject to an option agreement with De Beers whereby De Beers has the exclusive right until December 31, 2013 to enter into an earn-in and joint venture agreement for Chidliak on a 50.1 percent De Beers / 49.9 percent Peregrine, basis.

The eight week summer program will focus on new target generation and orientation activities through ground geophysics, geologic mapping and prospecting. In addition to the summer field program, De Beers is finalizing the comprehensive mining options study and the kimberlite pipe characterization studies.

Total expenditures by De Beers to date on technical studies, field costs, a reimbursement of a BHP Billiton installment payment regarding Chidliak, and De Beers’ private placement in Peregrine, amount to $6.3 million. De Beers’ expenditures will be applied to their earn-in obligation of $58.5 million should they enter into the earn-in and joint venture agreement with Peregrine. In the event De Beers does not elect to enter into the joint venture, Peregrine will have no obligation to refund any of these expenditures.

Mr. Brooke Clements, Peregrine’s President, said, “We are pleased to have collected this substantial bulk sample at CH-6 and to have finalized the summer 2013 work program with De Beers. Transitioning of operatorship to De Beers for this program is well advanced and I am confident that De Beers will advance Chidliak with the technical and operational excellence for which they are renowned. The combination of the Peregrine and De Beers’ technical teams is already yielding considerable benefits for the Project and we look forward to additional kimberlite discoveries this summer and to the results of the CH-6 bulk sample.”

Mr. Alan O’Connor, Professional Geologist, Peregrine’s Chidliak Project Manager, is a Qualified Person under National Instrument 43-101 and is responsible for the design and conduct of the programs carried out by the Company at Chidliak.

Mr. O’Connor has reviewed this release and approves of its contents.

ABOUT PEREGRINE DIAMONDS
Peregrine Diamonds is a diamond exploration and development company focused on Canada’s North. Peregrine has discovered two new diamond districts in Nunavut, Nanuq in 2007 and Chidliak in 2008. At its 72 percent owned, nine hectare DO-27 kimberlite in the Northwest Territories, located 27 kilometres from the Diavik Diamond Mine, a NI 43-101 compliant 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, which is open at depth, was confirmed in 2008. At its 100 percent-owned Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, the Company has discovered 61 kimberlites to date, and has completed the first bulk sample