April 11, 2012
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to
announce that field operations have commenced at its 100 percent-owned,
8,580 square kilometre Chidliak project (“Chidliak” or “the Project”),
located 120 kilometres from Iqaluit, Baffin Island, Nunavut, Canada.
The 2012 exploration program, with an estimated budget of $10 million,
will consist primarily of advanced preparations for the 2013 bulk
sampling program and significant exploration this summer to discover
more diamondiferous kimberlites. Preliminary details of the 2012
program were first announced on January 23, 2012.
REVERSE CIRCULATION (“RC”) BULK SAMPLING
The Sunrise camp is now open at Chidliak and the crew is preparing for
the overland mobilization of support equipment, including the Morooka
MST3000VD, Caterpillar Challenger 875C Tractor and Snow-Cat BR350, from
Iqaluit. Once on site, this equipment will be used to test
transportation routes between kimberlites and aircraft landing areas in
preparation for the planned bulk sample collection by RC drilling next
The amendments to Peregrine’s existing land use permit and water license
required for bulk sampling were received in March. The RC drill rig is
undergoing final modifications by Cooper Drilling Ltd. and will be
mobilized to Iqaluit by Sealift this summer. Bulk sample collection
from key kimberlites is scheduled to commence in February, 2013, and,
subject to results and renewal of required permits and licences, will
continue in 2014. Bulk samples will be transported to and processed at
the Saskatchewan Research Council Geoanalytical Laboratories in
Saskatoon with initial results anticipated in Q3, 2013.
PRE-BULK SAMPLE CORE DRILLING OF KEY KIMBERLITES
Peregrine plans to drill up to eight core holes into each of the CH-6
and CH-7 kimberlites this year to acquire more diamonds and to establish
pilot holes for 2013 bulk sample RC holes, to acquire preliminary
geotechnical information and to better define the overall size and
internal geology of the pipes. It is anticipated that core drilling at
CH-7 will allow disclosure of a tonnage estimate later this year. A
tonnage estimate of 5.7 million tonnes to a depth of 375 metres for CH-6
was announced on April 2, 2012. This tonnage estimate is currently not
a resource and there is no assurance that a resource will be identified
through further exploration work of CH-6.
In addition, core drilling is planned for the CH-1 and CH-44 kimberlites
to acquire more diamond content information and to better define the
pipes’ overall size and internal geology in preparation for RC bulk
sampling beginning in 2013.
CONTINUED KIMBERLITE EXPLORATION
This year the Company will also conduct focussed exploration to discover
additional diamondiferous kimberlites that have economic potential.
Planned 2012 work includes the following:
- Efficient, helicopter-portable RC drill testing of high-priority
geophysical targets identified from airborne and ground geophysics will
commence in the summer, principally in the Southern Focus Area.
- Approximately 1,500 line-kilometres of ground geophysical
surveys over 40 anomalies selected from previous airborne surveys are
planned, and the Chidliak winter ground survey program has commenced.
Additional ground geophysical surveys are planned for the summer.
- Indicator mineral sampling, mapping and ground prospecting will
commence in the summer. Prospecting has resulted in the discovery of
25 of the 59 kimberlites discovered at Chidliak to date, as many
kimberlites on the Project are exposed at surface.
- Under consideration is a 9,000 line-kilometre RESOLVE
helicopter-borne magnetic-electromagnetic geophysical survey, to be
completed in the summer, which will focus over priority areas of the
Project, including the Southern Focus Area, that have been surveyed
using only the DIGHEM system. Peregrine believes the additional
electromagnetic (“EM”) resolution provided by the RESOLVE system will
assist in the discovery of non-magnetic kimberlites such as the four
hectare CH-31 and five hectare CH-33 pipes.
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. O’Connor has
reviewed this release and approves of its contents.
For further information, please contact Mr. Eric Friedland, CEO, Mr.
Brooke Clements, President, Mr. Mike Westerlund, Vice President,
Investor Relations and Corporate Communications or Peregrine Diamonds
Investor Relations, at 604-408-8880 or at email@example.com
Forward-Looking Statements: This news release contains
forward-looking statements. All statements, other than statements of
historical fact, that address activities, events or developments that
the Company believes, expects or