Peregrine Announces Microdiamond Results For CH-13 Through CH-16 Kimberlites And Commencement Of 50 Tonne CH-1 Mini-Bulk Sample Processing For Diamonds

December 3, 2009 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) announces that the microdiamond results for the last four kimberlites, CH-13 through CH-16, discovered in 2009 on the 980,000 hectare Chidliak Project (“Chidliak” or “the Project”) on Baffin Island, Nunavut, have now been received and three of the four kimberlites were found to be diamondiferous. In addition, processing to recover commercial-sized diamonds from the 50 tonne mini-bulk sample collected from the CH-1 kimberlite has commenced. The mini-bulk sample is being processed at the Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”) and final results are expected in January, 2010.

A 358.7 kilogram sample of drill core from CH-16 returned 66 diamonds, the two largest sitting on the +0.150 mm sieve. A 170.5 kilogram sample of drill core from CH-15 returned four diamonds, the largest sitting on the +0.300 mm sieve. A 129.5 kilogram sample of drill core from CH-13 returned six diamonds, the largest also sitting on the +0.300 mm sieve. A 174.2 kilogram surface sample of CH-14 contained no diamonds.

Fifteen of the 16 kimberlites discovered at Chidliak to date are diamondiferous and diamond counts in seven kimberlites indicate further work is required to assess their size, geology and diamond grade potential. Three of these kimberlites, CH-1, CH-6, and CH-7, already have diamond size frequency characteristics that are consistent with economic potential in arctic settings. The kimberlite and diamond discovery statistics for Chidliak compare favourably with those of the Ekati(tm) and Diavik(tm) diamond properties in the Northwest Territories of Canada when they were at a similar stage of exploration.

Peregrine management is very encouraged by the results that have been generated thus far at Chidliak and the stage is now set for an ambitious 2010 exploration programme that will be focused on new discoveries and further drilling and sampling of kimberlites demonstrating economic potential. It is still early in the exploration cycle at Chidliak. The first kimberlite discovery was made on July 20, 2008 and, after just two months of drilling and prospecting in the summer of 2009, the Project already hosts 16 kimberlites, with more work required on seven of these. Some facts from the Ekati(tm) and Diavik(tm) properties in the Northwest Territories are a useful reference for evaluating Chidliak’s potential to host an economic diamond deposit. The A-154 kimberlite was the first pipe in the Diavik(tm) mine plan yet it was the 27th kimberlite discovered on the property, the first 26 pipes being un-economic or barren of diamonds. There are currently approximately 70 kimberlites known on the Diavik(tm) property with just three of these in the current mine plan. There are 156 kimberlites known on the Ekati(tm) property and only eight are currently in the mine plan. These statistics illustrate the outstanding rate of discovery of pipes with economic potential at Chidliak and that much more exploration is required to realize the full potential of this new Canadian diamond district.

Results still pending from the 2009 Chidliak exploration programme include the CH-1 mini-bulk sample and kimberlite indicator mineral results for 1,273 till samples collected during the summer of 2009.

As reported on November 18, 2008, a 2.28 tonne mini-bulk sample collected from the CH-1 kimberlite returned a diamond content of 1.56 carats per tonne for diamonds larger than the 0.85 mm sieve size with the largest diamond being a 2.01 carat gem. As reported on September 14 and October 21, 2009, a mini-bulk sample weighing approximately 50 tonnes of kimberlite was collected from an outcrop exposure at CH-1 which was then shipped by air to Iqaluit under strict chain of custody protocols. The sample was loaded onto two different ships bound for Quebec in locked and sealed seacans. Due to mechanical problems with one of the ships, approximately 85 percent of the mini-bulk sample arrived in Quebec City six weeks behind schedule. The entire sample arrived at the SRC on November 10, and processing of the sample has now commenced. Final results are expected in January, 2010.

The sample will be processed through the SRC dense media separation (“