March 21, 2007
Vancouver, British Columbia, Canada - Wednesday, March 21, 2007 -
Peregrine Diamonds Ltd. (TSX:PGD) (“Peregrine” or the “Corporation”)
today announced that it has begun its 2007 diamond exploration program
at the Pellatt Lake Project (“Pellatt”), NT, Canada.
Pellatt consists of 25 mineral claims and three mineral leases, covering
approximately 30,000 hectares, contiguous to the Northeastern boundary
of BHP Billiton’s Ekati(tm) Diamond Mine property (see attached map or
). There is one
diamondiferous kimberlite (PL-01) currently known on the property, with a
second kimberlite (PL06-05) discovered by Peregrine during last
season’s exploration program (see press release April 24, 2006).
Twenty-nine geophysical anomalies have been identified from the 3,851
line-kilometre FalconTM airborne gravity gradiometer survey flown by
Peregrine over the entire property in 2004. In addition, a total of 210
heavy mineral samples have been collected and processed from Pellatt in
2005 and 2006.
A core-drilling program is scheduled to begin during the second quarter
of 2007, initially focusing on 10 high priority targets selected from
the FalconTM and heavy mineral sampling data. At least 1,250 metres of
drilling is planned, with additional drilling being undertaken as
Detailed ground magnetic surveys will commence shortly, focusing on
seven areas identified from the interpretation of the 2005/2006 heavy
mineral sampling and the airborne geophysical data. Most of these seven
anomalous areas are located along an approximately five kilometre long,
WNW-trending structure, with which the PL-01 and PL06-05 kimberlites are
associated. Horizontal loop EM (HLEM) surveys will be conducted on any
high interest targets identified during these ground magnetic surveys.
An additional 200 heavy mineral samples will also be collected in order
to better define the seven anomalous areas identified during the 2006
The three Pellatt mineral leases and three of the claims are in joint
venture with DHK Diamonds Inc., while seven of the claims are in joint
venture with Dentonia Resources Ltd.. Peregrine can earn up to a 75%
interest in these two joint ventures, under certain conditions. The
remaining 15 claims are held 100% by Peregrine.
Peregrine also announced that it has completed a private placement of
common shares for gross proceeds of $3.0 million. A total of 1,200,000
common shares at a price of $2.50 per share were sold under the private
placement to a Limited Partnership on a “flow-through” basis pursuant to
the Income Tax Act (Canada). The shares issued under the private
placement are subject to a hold period in Canada until July 21, 2007. A
finder’s fee of $100,000, representing 3.34% of the gross proceeds of
the private placement, is due in connection with the private placement.
Proceeds from the private placement will be used for the Corporation’s mineral exploration projects in Canada.
Dr. Jennifer Pell, P.Geo., Chief Geoscientist for Peregrine Diamonds
Ltd., is the Qualified Person under NI 43-101 who is responsible for
Peregrine’s Canadian diamond exploration projects.
Peregrine is a well-funded Canadian diamond exploration/development
company that is managed by experienced geoscientists. The Corporation is
completing a third bulk sampling program on its WO Diamond Project, NT,
and is exploring for other diamondiferous kimberlites on its extensive
land holdings in Canada. The Corporation trades on the Toronto Stock
Exchange under the symbol “PGD”.
For further information, please contact Jim Crawford, Manager -Investor Relations, at 604-408-8880 or at firstname.lastname@example.org
Peregrine exploration properties in the Lac de Gras region, NT are outlined in red and olive.