August 25, 2008
Second Outcropping Kimberlite Discovered at Chidliak
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to
announce a new diamond discovery at the estimated six hectare CH-1
kimberlite on the Chidliak property (“Chidliak”), Baffin Island,
Nunavut, Canada. In addition, a second outcropping kimberlite, CH-2,
estimated to be three hectares in size, was discovered 1.5 km from CH-1.
Representative surface samples from two different CH-1 kimberlite units,
1A and 1B, were processed for diamonds by caustic fusion at the
Saskatchewan Research Council Geoanalytical Laboratories (“SRC”).
Sample 1B weighed 94.9 kg and returned 146 diamonds larger than the
0.075 mm sieve size, including 10 diamonds larger than the 0.600 mm
sieve size, an indication of a very favourable coarse diamond size
distribution. Sample 1A weighed 100.0 kg and returned 44 diamonds
larger than the 0.075 mm sieve size including two diamonds larger than
the 0.600 mm sieve size. The CH-1 caustic fusion results are summarized
in the following table.
CH-1 CAUSTIC FUSION DIAMOND RESULTS
Significance of Results
|Numbers of Diamonds According to Sieve Size Fraction (mm)
Peregrine views these results and other recent developments at Chidliak
as being extremely encouraging for the following reasons:
- This discovery establishes Chidliak as an important new Canadian
diamond district, approximately 700 km from the nearest known kimberlite
- The coarse diamond size distribution in the samples indicates
the potential for large commercial-size diamonds in CH-1 and by
inference, other kimberlites in the district.
- At an estimated six and three hectares respectively, CH-1 and
CH-2 demonstrate that Canada’s newest diamond district has excellent
kimberlite tonnage potential.
- CH-1 and CH-2 are exposed at surface, which suggests limited
overburden cover in this district. This will positively impact
exploration and bulk sampling costs.
- To date 65 kimberlite-type geophysical anomalies from the
ongoing survey have been prioritized for follow-up work. Many of these
targets have signatures similar to CH-1 and CH-2 as well as associated
kimberlite indicator mineral trains.
- Situated just 150 km northeast of Iqaluit, capital of Nunavut,
the property has direct access to tidewater that connects to the
- The discovery of two kimberlite pipes and the confirmation of
diamonds, so early in the exploration cycle, is rare and bodes well for
the diamond potential at Chidliak.
Brooke Clements, President of Peregrine stated “Two
kimberlites have already been discovered in outcrop prior to any
drilling and one of these has proved to be highly diamondiferous. The
presence of 12 diamonds above the 0.600 mm sieve size in a cumulative
sample of only 195 kg suggests a coarse diamond size distribution at
CH-1 which is normally an indication that a population of