June 4, 2010
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is
pleased to report the discovery of the CH-18 kimberlite at the Chidliak
project (“Chidliak”) on Baffin Island, Nunavut, Canada. CH-18 is
located 16 kilometres northwest and 15 kilometres northeast,
respectively, of the nearest known kimberlites, CH-13 and CH-12. In
addition, the collection of a 12 tonne mini-bulk sample from the CH-6
kimberlite is scheduled to commence this weekend.
The CH-18 drill intersections were interpreted in the field as being
both magmatic and pyroclastic kimberlite. The following table
summarizes the one angled hole that was drilled from shore across the
kimberlite which lies under a lake. Kimberlite material collected from
CH-18 will be analyzed for diamonds by caustic dissolution with results
expected in the third quarter of this year.
SUMMARY OF 2010 DRILLING AT THE CH-18 KIMBERLITE
||Inclination from Horizontal
|Kimberlite Intercepts (m)
||End of Hole
Note: All intercepts below the overburden that are not kimberlite are gneiss or gneiss with kimberlite stringers.
Geophysical anomaly 291, located one kilometre west of CH-18, was also
drilled. No kimberlite was intersected and the anomaly was explained by
the presence of highly magnetic mafic rock.
The core drill is now being moved to the CH-6 kimberlite where a
representative mini-bulk sample of approximately 12 tonnes will be
extracted by drilling HQ (6.4 cm diameter) core. In early July, this
drill, along with a second drill that is onsite, is scheduled to begin
drill-testing new kimberlite targets at Chidliak. As announced on
November 12, 2009, a 569 kilogram sample of drill core collected from
CH-6 in 2009 yielded 4,737 diamonds larger than the .075 mm sieve size
including 109 commercial-size diamonds larger than the 0.850 mm sieve
size and 10 diamonds larger than 0.1 carat. These results were
processed by the Saskatchewan Research Council by caustic fusion.
A map showing CH-18 and anomaly 291 and a map and diamond results from CH-6 are available here
As announced on November 24, 2008, BHP Billiton has exercised its
earn-in rights for Chidliak. Under the terms of the earn-in agreement,
BHP Billiton must incur a total of $22.3 million in exploration
expenditures in order to earn a 51 percent interest in Chidliak. BHP
Billiton sole-funded a $9.2 million exploration programme in 2009. A
$13.9 million programme has been approved for 2010.
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 programs carried out by the Company at Chidliak. Mr.
Holmes has reviewed this release and approves of its contents.
For further information, please contact Mr. Eric Friedland, CEO, Mr.
Brooke Clements, President, Mr. Mike Westerlund, Vice President,
Investor Relations and Corporate Communications or Peregrine Diamonds
Investor Relations, at 604-408-8880 or at email@example.com
Forward-Looking Statements: This news release contains
forward-looking statements. All statements, other than statements of
historical fact, that address activities, events or developments that
the Company believes, expects or anticipates will or may occur in the
future (including, without limitation, statements relating to the
proposed exploration program, funding availability, anticipated
exploration results, resource estimates, and future exploration and
operating plans) are forward-looking statements. These forward-looking
statements reflect the current expectations or beliefs of the Company
based on information currently available to the Company.