Peregrine Diamonds Provides 2017 Chidliak Drill Program Update Drilling Confirms Expansion Of CH-6 Kimberlite At Depth

August 23, 2017 PDF version

VANCOUVER, CANADA – Peregrine Diamonds Ltd. (TSX:PGD) (“Peregrine” or “the Company”) is pleased to announce the completion of three diamond drill holes totaling 1,474 metres drilled at its 100%-owned Chidliak Diamond Project (“Chidliak”) near Iqaluit, Nunavut, Canada. Core hole CHI-050-17-DD36 (“DD36”) is a 378 metre vertical hole that intersected kimberlite from 4.5 to 295.8 metres below surface (“mbs”), consistent with the resource model for the CH-6 kimberlite. Core hole CHI-050-17-DD38 (“DD38”) was drilled at -60 degrees inclination for a total hole length of 560 metres, equivalent to 485 mbs. DD38 intersected 190.2 metres of typical olivine-rich CH-6 kimberlite from 277 to 442 mbs. The DD38 result confirms the in-section result from DD33 previously reported, delineating expanded margins for the high grade CH-6 kimberlite with depth. Core hole CHI-050-17-DD39 (“DD39”) is a 536 metre near-vertical hole. This hole ended in kimberlite at 532 mbs and confirms the kimberlite extends beyond 500 mbs, the current planned extent of the resource expansion program drilling in 2017.

Tom Peregoodoff, Peregrine’s President and Chief Executive Officer, commented: “We are extremely pleased with the drill results to date. It is especially encouraging to see that DD38 confirms the result from DD33 and that the CH-6 kimberlite is expanding in size with depth. This additional kimberlite material could provide a significant uplift to contained carats as we look to recalculate the resource later this year. In addition, hole DD39 confirms the high grade (average 2.45 carats per tonne) CH-6 pipe continues at depths below 500 metres and provides future resource expansion opportunitites. Drilling continues and with these results we are confident that we will meet our objective this year of expanding the CH-6 resource below the 260 mbs base of the current Inferred Resource.”

COMPLETION OF HOLES DD36, DD38 and DD39

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 CHI-050-17-DD36 (“DD36”), a vertical HQ-diameter hole, was designed to prove up and access kimberlite for microdiamond sampling in material currently considered a Target for Further Exploration (“TFFE”) that occurs between 260 and 380 mbs. Drilling of DD36 commenced on July 26, 2017 and was successfully completed on August 3, 2017, providing a 291.3 metre intersection of continuous, typical olivine-rich CH-6 kimberlite from 4.5 to 295.8 mbs. DD36 continued in metasedimentary country rock to 378.0 mbs where the hole was terminated. The DD36 result delineates a southward plunge for the northern portion of CH-6, consistent with previous modeling of the CH-6 kimberlite.

A unique, spatially restricted, textural sub-unit of CH-6 kimberlite named KIM-G occurs at 149 to 189 metres depth in vertical hole DD36. Spherical to ovoid kimberlite pyroclasts ranging from 1 to 15 centimetres m in diameter occur in a clast-supported configuration with interstitial open space infilled by carbonate and serpentine. Pyroclast sizes generally increase toward the base of the KIM-G sub-unit, with larger pyroclasts typically containing mantle, gneissic or limestone xenoliths. The pyroclast size zonation within the KIM-G sub-unit supports an interpretation as a primary airfall deposit.

Core hole CHI-050-17-DD38 (“DD38”), azimuth 258, inclination -60° was designed to provide a roughly east-west intercept of kimberlite in the 260 to 500 mbs depth range. Drilling of DD38 commenced on August 5, 2017 and was successfully completed on August 15, 2017, providing a 190.2 metre intersection of continuous, typical olivine-rich CH-6 kimberlite from 277 to 442 mbs. DD38 continued through a metasedimentary country rock xenolith, intersected an additional 7.5 metres of kimberlite and was terminated in country rock at 485 mbs. The DD38 result p