Peregrine Announces New Canadian Diamond Discovery at Chidliak, Baffin Island

August 25, 2008 PDF version
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.

Sample Sample
Numbers of Diamonds According to Sieve Size Fraction (mm) Total
1A 100.0 9 11 9 9 2 2 2 0 0 0 44
1B 94.9 34 37 28 19 13 5 4 2 2 2 146

Significance of Results
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 occurrence.
  • 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 Atlantic Ocean.
  • 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 commercial-sized diamonds will be identified in larger samples. An additional one tonne sample from CH-1 has been collected and will be sent to SRC for processing immediately and the field crew is currently collecting samples from CH-2. We view these developments as highly encouraging at this stage of exploration and we expect that more diamondiferous kimberlites will be discovered at Chidliak in the future.”

Peter Holmes, Peregrine’s Vice President, Exploration stated “The identification to date of over 65 kimberlite-type geophysical anomalies