Peregrine Confirms Coarse Diamond Size Distribution at the CH-1 Kimberlite, Chidliak

March 3, 2011 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report new microdiamond results confirming a coarse diamond size distribution in previously untested portions of the CH-1 kimberlite located on the 8,580 square kilometre Chidliak project (“Chidliak” or “the Project”) on Baffin Island, Nunavut, Canada. CH-1 is one of seven kimberlites at the Project that has characteristics consistent with economic potential in Arctic settings. In addition, all remaining microdiamond results from kimberlites discovered in 2010 have been received, and the CH-22, CH-40 and CH-42 kimberlites were found to be diamondiferous.

The three samples collected from CH-1 by reverse circulation (“RC”) drilling were processed at the Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”). Samples from drill holes RC-01 and RC-03 are from two previously untested magnetic high anomalies that are thought to represent separate lobes of CH-1. RC-02 was drilled to test the area underneath the outcrop from which a 49.6 tonne mini-bulk sample was collected in 2009. The 312.6 kilogram RC-01 sample yielded 1,690 diamonds larger than the 0.106 mm sieve size, including five diamonds larger than the 0.850 mm sieve size which weigh 0.206 carats. The 361.2 kilogram RC-02 sample returned 1,062 diamonds larger than the 0.106 mm sieve size, including eight diamonds larger than the 0.850 mm sieve size which weigh 0.338 carats. The 223.3 kilogram RC-03 sample returned 339 diamonds larger than the 0.106 mm sieve size, including five diamonds larger than the 0.850 mm sieve size.

The Company is encouraged that CH-1, the first kimberlite discovered at Chidliak in 2008, has a coarse size diamond distribution in multiple samples and a population of clear and colourless diamonds. The likely next work programme for CH-1 will consist of detailed core drilling to better define tonnage potential, geology and diamond content of the different kimberlite phases. This programme would be conducted sometime after 2011 and would likely be followed by the collection of mini-bulk or bulk samples to obtain larger diamond parcels for valuation.

The following table summarizes caustic fusion diamond results from the CH-1 kimberlite.

SUMMARY OF CAUSTIC FUSION RESULTS FOR SAMPLES FROM THE CH-1 KIMBERLITES

Sample

Sample
Weight
(kg)

Numbers of Diamonds According to Sieve Size Fraction (mm)

Total
Diamonds

Carats
(+0.850
mm size)

+0.106
-0.150

+0.150
-0.212

+0.212
-0.300

+0.300
-0.425

+0.425
-0.600

+0.600
-0.850

+0.850
-1.180

+1.180
-1.700

+1.700
-2.360

RC-01

312.6

839

490

235

79

30

13

0

3

2

1,690

0.206

RC-02

361.2

541