Peregrine Diamonds Successfully Completes 2017 Work Program at Chidliak and Provides Botswana Project Update

September 21, 2017 PDF version

VANCOUVER, CANADA – Peregrine Diamonds Ltd. (TSX:PGD) (“Peregrine” or “the Company”) is pleased to announce that it has successfully completed its 2017 work program at its 100%-owned Chidliak Diamond Project (“Chidliak”) near Iqaluit, Nunavut, Canada. The program was completed on schedule on September 8, 2017, with a total of 5,288 metres drilled in 15 core holes utilizing three drill rigs.

The program achieved the drilling objectives of the 2017 work program, as outlined in a June 19, 2017 news release, including the primary goal of further delineating and sampling the CH-6 kimberlite to a depth of 500 metres below surface (“mbs”). In addition, two near-vertical core holes terminated in kimberlite at depths greater than 530 mbs, confirming the kimberlite is open below the 500 mbs drilling target depth. The results of the 2017 program will form the basis of a revised CH-6 resource estimate, with the goal of extending the categorized resource base from a depth of 260 mbs to 500 mbs.

Tom Peregoodoff, Peregrine’s President and Chief Executive Officer, commented: “We are pleased to have successfully completed the 2017 drill program. We have confirmed that the high grade CH-6 kimberlite pipe extends beyond 500 metres below surface and remains open at depth. In addition, the 2017 program has expanded the kimberlite within the 260 metre base of the existing Inferred Resource, which could significantly add to the total carat count in the current Inferred Resource. Finally, the completed 2017 drilling and sampling of kimberlite material deeper than 260 metres below surface, currently classified as a Target for Further Exploration, could provide additional significant uplift to contained carats as we look to announce an increased diamond resource later this year.”

2017 CORE DRILLING AT CH-6

Of the 5,288 metres of core drilled this season, one hole was vertically oriented and 12 holes were inclined (five of which were near-vertical with inclinations greater than 80 degrees); 4,260 metres drilled were NQ-diameter (47.6 millimetres; 12 holes); and 1,028 metres were HQ-diameter (63.5 millimetres; three holes). Drilling is summarized in Table 1. Geotechnical information was collected from 11 of the 15 holes, with oriented core data collected from two HQ-diameter holes to allow for further open-pit design and optimization studies. Geotechnical logging, and geological logging and sampling has been completed. Kimberlite sampled from this program has been sent to the Saskatchewan Research Council (“SRC”), in Saskatoon, Saskatchewan for caustic fusion microdiamond analysis. Results are expected in the fourth quarter of 2017.

Integration of the 2017 microdiamond results and ancillary geological data will enable the Company to revise the resource estimate for CH-6, which is expected to be complete in the fourth quarter of 2017. If the resource is extended deeper than 260 mbs and it is of sufficient tonnage and inferred diamond grade, a revised Preliminary Economic Assessment (“PEA”), outlining a combined open-pit and underground mining operation for CH-6, in addition to an open-pit operation at CH-7, could be completed in the first quarter of 2018.

As part of the advanced permitting work program for 2017, legal surveys of ten Chidliak mineral claims were undertaken to take claims of strategic interest to mineral lease. This work involved a ground survey of the ten claims by Sub-Arctic Surveys Ltd., professional land surveyors, between July 22 and 29, 2017. Mineral lease applications have been submitted to the Nunavut Mining Recorder.

TABLE 1: SUMMARY OF 2017 CORE DRILLING AT CH-6

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Drill Hole Length (metres) Azimuth (degrees) Dip (degrees) Kimberlite Intersected (metres) Diameter Comment
CHI-050-17-DD32 120 80 -67 0.0