July 14, 2015
Peregrine Diamonds Ltd. (“Peregrine” or the “Company”) (TSX:PGD) is
pleased to announce the completion of the transaction previously
announced on March 30, 2015 to acquire all of the shares of Diamexstrat
Botswana (Proprietary) Ltd. (“DES Botswana”), a privately held
Botswana-registered diamond exploration and development company, from
Diamond Exploration Strategies Limited, a UK registered private company
(“DES UK”). DES Botswana’s primary assets are eight prospective diamond
Prospecting Licences that cover 5,746 km2 in Botswana. The planned
2015 Botswana diamond exploration program includes drill testing of four
priority kimberlite targets.
Tom Peregoodoff, President and CEO commented “Working with the
principals of DES Botswana, Peregrine has put together a cost-effective
and focused exploration program for 2015. Peregrine’s VP, Technical
Services, Dr. Grütter and the DES Botswana team have done a tremendous
job in using our extensive and proprietary Botswana database to identify
high priority targets in this mature diamond-producing terrain. The
work program will commence in July and the drilling is expected to
commence in September.”
The transaction announced on March 30, 2015 between Peregrine and DES UK
calls for the transfer of ownership of DES Botswana and all of its
assets to Peregrine in consideration for the grant by Peregrine of a 1%
gross overriding royalty (the “Royalty”) to DES UK on all precious stone
mineral interests held at the time of closing and those which may be
acquired in the future in specific target areas. The agreement allows
for Peregrine to purchase the Royalty at various milestones as detailed
on March 30, 2015.
All conditions of the agreement have now been met, including receipt of
all government approvals, and the transaction has closed.
2015 Diamond Exploration Program
The planned 2015 diamond exploration program will focus on target
drilling, further target generation and ground truthing. The program is
expected to commence in mid-July and continue until late November. The
total budget for the 2015 work program is approximately CDN$300,000.
Target testing via rotary air blast (“RAB”) drilling will focus on the
Moralane license. This license covers 664 km2 and hosts a compelling
kimberlite indicator mineral (“KIM”) anomaly with associated isolated
magnetic anomalies. Microprobe-confirmed KIM compositions define a
unique, diamond-compatible signature that cannot be matched to
indicators from known kimberlite clusters in the region. Previous
operators in the area focused their drilling on the highest indicator
mineral counts and did not have the benefit of incorporating the now
available regional aeromagnetic data. Approximately 300 line kilometres
of high resolution ground magnetics will be acquired and the results
will be used to identify and prioritize drill collar locations.
Approximately 500 metres of RAB drilling is planned to test four
KIM-supported magnetic anomalies. The total budget for this component
of the work program is approximately CDN$200,000.
Target generation will focus on two areas.
- The Gope area, which hosts the recently commissioned Ghaghoo mine operated by GEM Diamonds; and
- The Nata area, which lies along a prolific Cretaceous kimberlite
emplacement corridor that includes the producing Ghaghoo, Orapa,
Lethlakane, Karowe and Damtshaa diamond mines, and numerous other
At Gope, Peregrine holds two licences covering 1,001 km2. In 2004 a
detailed, low level aeromagnetic survey was flown. It identified
numerous priority targets to the north of the known Gope kimberlites.
These targets have never been drill tested. The Peregrine work program
will include detailed re-interpretation of the airborne magnetic data,
ground magnetics to confirm the position of priority one anomalies and
target scale KIM surveys to assist in target prioritization. Drill