Peregrine Announces Discovery Of 60th Kimberlite And Provides Chidliak Project Update

July 24, 2012 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to provide an update on the $10.5 million 2012 exploration program on its 100 percent-owned, 8,580 square kilometre Chidliak project (“Chidliak” or “the Project”), located 120 kilometres from Iqaluit, Baffin Island, Nunavut, Canada. The summer field season began on July 1. Scheduled work this year includes definition core drilling on the CH-1, CH-6, CH-7 and CH-44 kimberlites, prospecting of priority geophysical and indicator mineral anomalies, helicopter-portable reverse circulation (“RC”) drilling of high-priority kimberlite targets, and continued preparation for the planned collection of bulk samples from key kimberlites in 2013. One new kimberlite has been discovered so far this season by prospecting, CH-60. In addition, four new and separate occurrences of kimberlite pebbles and cobbles (“kimberlite float”) have been found suggesting the presence of yet to be discovered kimberlite bodies nearby.

Mr. Brooke Clements, Peregrine’s President, said “We made our first kimberlite discovery at Chidliak in July, 2008, and it is gratifying that after four years of intensive exploration, we still continue to find new kimberlites and kimberlite float. This speaks to the tremendous exploration potential of this exceptional diamond project.”

CORE DRILLING OF KEY KIMBERLITES
The 4,000 metre NQ-size (4.8 cm) core drilling program on the CH-1, CH-6, CH-7 and CH-44 kimberlites in preparation for the planned 2013 bulk sampling program is progressing well. As of July 23, 983 metres in four holes has been completed on CH-7 and 137 metres in one hole has been completed at CH-1.

CONTINUED KIMBERLITE EXPLORATION AND CH-60
Over 5,500 line-kilometres of ground geophysical surveys were completed during the 2012 winter exploration program. More than 40 geophysical anomalies and 20 target areas hosting kimberlite indicator mineral anomalies are scheduled for follow-up by prospecting, mapping and ground magnetic surveying this summer. High priority targets confirmed through this work will be drilled with a helicopter-portable RC drill rig beginning in August. At this time, 20 geophysical anomalies are considered drill-ready.

Follow-up prospecting has led to the first kimberlite discovery of this season, CH-60, which is defined by a magnetic anomaly with an estimated surface expression of 0.3 hectares, and by the occurrence of abundant kimberlite float coincident with the anomaly. CH-60 is located approximately eight kilometres southeast of the CH-7 kimberlite. In addition, four new discrete occurrences of kimberlite float have been discovered and further prospecting and ground geophysics will be required to identify the kimberlite sources.

The collection of approximately 400 indicator mineral samples and the continuation of environmental baseline surveys are also scheduled for this summer.

RC BULK SAMPLING PREPARATIONS
Overland mobilization of support equipment for the 2013 bulk sampling program along a trail from Iqaluit to Chidliak was successfully completed this winter. The Morooka MST3000VD, Caterpillar Challenger 875C Tractor, Snow-Cat BR350 and ancillary equipment for the program are now securely stored on site. Testing of transportation routes between kimberlite pipes, airstrips and camps was completed and the suitability of the equipment for the program was confirmed.

The new large diameter RC drilling system that will be utilized for the 2013 bulk sampling program is undergoing final modifications by Cooper Drilling LLC in Colorado, and it is scheduled to be mobilized to Iqaluit by sealift in September. Drilling of a test hole in Colorado to fully commission the drill rig and ancillary equipment prior to shipment is scheduled to commence in early August.

Images of summer operations, kimberlite float, equipment mobilization and the modified RC drill rig are available on Peregrine’s website here.

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