April 23, 2013
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is
pleased to report that a bulk sample weighing approximately 508 wet
tonnes has been collected by surface trenching from the CH-6 kimberlite
on the Company’s 100 percent-owned Chidliak project (“Chidliak” or “the
Project”) located on Baffin Island, 120 kilometres from Iqaluit, the
capital of Nunavut, Canada. As reported by Peregrine on September 5,
2012, the Project is subject to an option agreement with De Beers Canada
(“De Beers”) whereby De Beers has the exclusive right until December
31, 2013 to enter into an earn-in and joint venture agreement for
Chidliak on a 50.1 percent De Beers / 49.9 percent Peregrine basis.
To date, approximately 325 tonnes of the 508 tonne bulk sample from the
CH-6 kimberlite have been transported to Iqaluit where the sample is
being stored until the summer when it will be transported to Montreal on
the sealift. The sample is currently scheduled to be processed by the
Saskatchewan Research Council in Saskatoon in the fourth quarter,
followed by independent valuations of the resulting diamond parcel.
Peregrine will not commence processing of the bulk sample until the
earlier of: 1) De Beers delivering to the Company binding notice of
their decision regarding their right to enter into an earn-in and joint
venture agreement for Chidliak or 2) the expiry of this right.
Peregrine’s objective is to utilize the diamond grade and value
information from the bulk sample and geologic and diamond content
information acquired from core drill programs conducted in 2009, 2010
and 2011 to develop a preliminary revenue model and establish an initial
resource for CH-6. This work will serve as a foundation for future
independent resource calculations and together with the mining study
being completed by De Beers, enable the completion of a Preliminary
Economic Assessment for CH-6 in the first half of 2014.
The commencement of the CH-6 bulk sampling program, with an approximate
sample size target of 200 tonnes, was announced on January 28, 2013.
Work completed in February and March included the establishment of a
camp near CH-6, mobilization of an excavator, drill and blast equipment
and supplies to site from Iqaluit, and drilling and blasting of the
trench area. The trench was excavated in early April exposing
kimberlite below approximately four metres of overburden and
approximately 508 wet tonnes of excavated kimberlite material was placed
in securely sealed sample bags, each holding approximately one tonne.
The sampling was completed on April 13 and the trench site was
reclaimed. Transportation of the samples from the CH-6 site to Iqaluit
commenced on April 9 using up to four Caterpillar Challenger vehicles
hauling the sample via sleighs. In addition, a DC-3 aircraft is being
utilized to transport sample material to Iqaluit. Four additional
Challenger convoy round trips are required to transport all of the
remaining bulk sample material to Iqaluit.
As reported on December 6, 2010, a 14.11 tonne mini-bulk sample
collected from CH-6 returned a grade of 2.84 carats per tonne. If that
grade is confirmed with further testing, CH-6 would be one of the
highest grade kimberlite pipes in the world. On April 2, 2012, Peregrine
reported a tonnage estimate for CH-6 that identified 5.7 million tonnes
of kimberlite to a depth of 325 meters, with 3.6 million tonnes
considered reasonably defined with good drilling support. The tonnage
estimate does not constitute a mineral resource and there is no
assurance that a resource will be identified through further exploration
work at CH-6.
Mr. Alan O’Connor, Professional Geologist, Peregrine’s Chidliak Project
Manager, is a Qualified Person under National Instrument 43-101 and is
responsible for the design and conduct of the programs carried out by
the Company at Chidliak.
Mr. David Farrow, Professional Geologist and President of Geostrat
Consulting Services Inc., a Qualified Person under National Instrument
43-101, prepared the CH-6 tonnage calculation and has reviewed the CH-6
geological model and diamond size distribution data.
Mr. O’Connor and Mr. Farrow have reviewed this release and approve of its contents.
ABOUT PEREGRINE DIAMONDS
Peregrine Diamonds is a diamond exploration and development company
focused on Canada’s North. Peregrine has discovered two new diamond
districts in Nunavut, Nanuq in 2007 and Chidliak in 2008. At its 72