Peregrine Commences Chidliak Site Preparations for 2015 Diamond Resource Development Program

December 8, 2014 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to provide an update on its 100 percent-owned Chidliak diamond project (“Chidliak” or the “Project”). Chidliak is located 120 kilometres northeast of Iqaluit, the capital of Nunavut, Canada. The Company’s objective is to advance the Project to diamond production in phases, with the first phase of development centered on CH-6, CH-7 and CH-44 (“the Phase One Kimberlites”), three of at least eight kimberlite pipes at Chidliak known to have economic potential. Commencing in 2016, Peregrine plans to confirm additional diamond resources in other kimberlites with economic potential. To date 71 kimberlites have been discovered at Chidliak, 42 of which are diamondiferous. Diamond testing has been deferred on 24 kimberlites. Peregrine is optimistic that more kimberlite pipes will be discovered at Chidliak in the future.

The work programs completed in 2014 and planned for 2015 are designed to confirm diamond resources in the Phase One Kimberlites. Once confirmed, these resources would form the foundation of an independent, NI 43-101-compliant, Preliminary Economic Assessment (“PEA”) to be completed in 2016.

Resource development work completed in 2014 includes the acquisition and delivery to Iqaluit of drilling and support equipment required for the 2015 bulk sampling program and resource definition drilling of the Phase One Kimberlites. Exploration work completed in 2014 includes initial core drilling on the CH-46 kimberlite as a follow-up to encouraging microdiamond results and the discovery of two new kimberlites.

2015 RESOURCE DEVELOPMENT PROGRAM
Bulk samples from the Phase One Kimberlites will be obtained by large diameter RC drilling (up to 26 inch/66 cm diameter) in 2015. The work is designed to confirm continuity of diamond grade throughout the kimberlite bodies and obtain additional parcels of diamonds for valuation. If results warrant, Peregrine would prepare maiden resource statements for CH-7 and CH-44 and update the existing CH-6 resource.

In preparation for the 2015 program a total of 421 tonnes of material, including the large diameter RC drill and all required support equipment and supplies, was successfully mobilised to Iqaluit on the 2014 sealift. Mobilisation of the equipment into the Chidliak site from Iqaluit is scheduled to commence in January, 2015 via an overland winter trail and Hercules transport aircraft. Camp build-outs and related fuel staging in support of the bulk sample program were completed this summer. All of the permits required to conduct the 2015 bulk sample program have been received.

Preparation of the winter trail and staging area in Iqaluit will begin this month. A crew has mobilised to Chidliak and has begun site preparations, including construction of the ice strip for the Hercules.

SUMMER 2014 CHIDLIAK PROGRAM UPDATE
Details of the 2014 program were reported on September 2, 2014. Additional 2014 activities include:
  • Core and RC drilling at CH-6, CH-7 and CH-44
    Logging and sampling of the 3,305 metres of drill core from the Phase One Kimberlites is now complete. Approximately 1,418 kilograms of kimberlite were submitted to the Saskatchewan Research Council (“the SRC”) for microdiamond testing. A small diameter RC drill completed an additional 71 metres in five holes to constrain overburden depth and establish near-surface contacts at CH-06. The drill and diamond results are being integrated into the existing geologic models of the Phase One Kimberlites. Revised tonnage estimates for CH-7 and CH-44 and a new estimate of the CH-6 resource, are expected in January 2015.
  • Core drilling outlines CH-46
    Initial microdiamond results from CH-46 are consistent with economic potential. Three core holes totalling 392 metres intersected 134 metres of kimberlite at CH-46, defining a north-south trending pipe with surface dimensions of 75 by 30 metres. The pipe remains open to the north and south. Core logging suggests CH-46 is comprised of volcaniclastic kimberlite with moderately abundant olivine macrocrysts and indicator minera