Peregrine Announces Q1 and Q2 Kimberlites at 100% Owned Qilaq Project Are Diamondiferous

October 6, 2010 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report encouraging diamond results from the first two kimberlites (Q1 and Q2) discovered on the Company’s 100 percent-owned, 854,000 hectare Qilaq project (“Qilaq” or “the Project”). Qilaq is located on Hall Peninsula, northeast of Iqaluit, the capital of Nunavut, Canada, and is adjacent to Peregrine’s Chidliak project (“Chidliak”) where, as reported in a news release on September 16, 2010, the Company has discovered 50 kimberlites since July, 2008.

A 62.7 kilogram sample from Q1 yielded 38 diamonds larger than 0.106 mm sieve size including one diamond larger than the 0.600 mm sieve size, and a 241.5 kilogram sample from Q2 yielded 253 diamonds larger than 0.106 mm, including three diamonds larger than 0.600 mm.

The following table summarizes caustic fusion diamond results from the Q1 and Q2 kimberlites. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”).

SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR SAMPLES FROM THE Q1 AND Q2 KIMBERLITES

Kimberlite

Sample Weight (kg)

Numbers of Diamonds According to Sieve Size Fraction (mm)

Total Diamonds

Carats
(+0.850
mm size)

+0.106
-0.150

+0.150
-0.212

+0.212
-0.300

+0.300
-0.425

+0.425
-0.600

+0.600
-0.850

+0.850
-1.180

+1.180
-1.700

Q1

62.7

17

9

5

4

2

1

0

0

38

0

Q2

241.5

111

63

45

23

8

2

0

1

253

0.05


The diamond in the Q2 sample that is larger than the 1.180 mm sieve size is classified by the SRC as a 0.05 carat white/colourless, transparent distorted crystal.

Mr. Eric Friedland, CEO of Peregrine stated “The discovery of two diamondiferous kimberlites at Qilaq in the second year of exploration on the Project is remarkable, particularly since they were made without the benefit of drilling. Our team is looking forward to advancing exploration on this exciting project in 2011, utilizing the results from the 2010 sampling programme. We are confident that more diamondiferous kimberlites will be discovered at Qilaq.”

Q1 and Q2 KIMBERLITES
The Q1 kimberlite is characterized by a magnetic high anomaly with an estimated diameter of 150 metres, associated with a topographic depression that measures approximately 60 metres by 50 metres. The 62.7 k