July 26, 2017
VANCOUVER, CANADA - Peregrine Diamonds Ltd. (TSX:PGD) (“Peregrine” or “the Company”) is pleased to announce the completion of hole CHI-050-17-DD33 (“DD33”), a 433-metre long drill hole at its 100%-owned Chidliak Diamond Project (“Chidliak”) near Iqaluit, Nunavut, Canada. Hole DD33 contains a 152-metre long continuous intercept of typical CH-6 kimberlite, significantly more than the 100-metre intercept predicted by the current CH-6 resource model. The drill result expands the western margin of the CH-6 pipe by approximately 35 metres at a depth of 200 metres below surface (“mbs”) and confirms the eastern pipe contact as near-vertical to 330 mbs, as predicted by the current CH-6 resource model. DD33 continued in country rock and encountered a 0.32-metre open-ended intersection of olivine-macrocrystic kimberlite at 361 mbs where the hole was lost. Another drill hole is planned to test this kimberlite at depth from the eastern side of CH-6.
The Company has signed a contract with Vital Drilling Services for the supply of an additional diamond drill rig for the current program. The drill rig is expected at Chidliak on August 1st and will provide 2,000 to 4,000 metres of drill capacity to support completion of resource expansion objectives within the 2017 drilling season
Tom Peregoodoff, Peregrine’s President and Chief Executive Officer, commented: “We are extremely pleased with this first drill result that shows that the pipe is expanding with depth. The addition of the third rig will assist in delineating the high grade CH-6 pipe to depths of 500 metres below surface and to allow for a restated resource estimate to be developed and announced later in the year.”
COMPLETION OF HOLE DD33
As reported on June 19, 2017, the 2017 drilling program at Chidliak aims to further delineate the CH-6 kimberlite, with the objective of expanding the high grade CH-6 resource to a depth of 500 metres below surface. Core hole DD33 (090 azimuth, -60 inclination) was designed to cross west-east through the centre of the Target for Further Exploration (“TFFE”) and to provide a 100-metre long kimberlite intercept based on the current model for the CH-6 pipe shell. Drilling of DD33 commenced on July 9, 2017 and was completed on July 24, 2017, providing a 152.1 metre intersection of continuous, typical olivine-rich CH-6 kimberlite from 200 to 330 mbs. The kimberlite contact expands the west-east diameter of the CH-6 pipe at 200 mbs from 55 to 90 metres by displacing the western margin of the pipe some 35 metres to the west. It also confirms the eastern margin of CH-6 is near-vertical and occurs within 4 metres of that projected by the Company at 330 mbs. The westward expansion of CH-6 is targeted for confirmation at depth by drill-testing in the 380 to 500 mbs range with drill holes in the planned 2017 program.
Hole DD33 was lost at 433 metre down hole length, at 360.6 mbs and terminated in kimberlite. A 32-centimetre intersection of slightly altered olivine-macrocrystic kimberlite was logged at the end of the last core barrel retrieved. The nature and relationship with CH-6, if any, of this deeper kimberlite intersection is unknown at this time. Future deep drilling from the eastern side of CH-6 will attempt to establish the nature, extent and continuity of this deeper kimberlite intersection.
Tom Peregoodoff, Peregrine’s President and Chief Executive Officer, further commented: “This expansion in tonnage potential has significant implications for the total contained carats within CH-6 and could significantly influence future planned engineering and development studies. While the significance of the kimberlite intersection at depth is unknown, both results from this single hole show that the potential of the Chidliak property is far from exhausted.”
A cross section of the DD33 drill trace is shown in Figure 1 below.
Figure #1 – Drill Trace – Diamond Drill Hole CHI-050-17-DD33
In addition to DD33, three other core holes have been initiated since drilling started on July 7, 2017. Two holes have been abandoned prior to completion due to adverse drilling conditions. At the third hole, the casing has now been set and drilling is set to resume on July 26, 2017.
$10.28 MILLION RIGHTS OFFERING
As announced on July 10, 2017, Shareholders of record on July 17, 2017 have received one right (