Peregrine Discovers 12 More Kimberlites At Chidliak, Bringing Total To Date To 50; CH-31 Now Estimated At More Than Five Hectares In Size

September 16, 2010 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to report the discovery of 12 new kimberlites and the successful completion of the summer exploration programme at the Chidliak project (“Chidliak” or “the Project”) on Baffin Island, Nunavut, Canada. These 12 new discoveries bring the total number of kimberlites discovered to date on the Project to 50, of which 34 have been discovered in 2010. Eight of the new kimberlites were discovered by reverse circulation (“RC”) drilling, one by core drilling and three by prospecting. In addition, 11 core holes and ten RC holes were drilled into six previously identified kimberlites to increase the understanding of their size and diamond potential.

Seven of the kimberlites discovered to date are likely to be greater than one hectare in size based on drill data and ground geophysical signatures. Highlighting the probability for large kimberlites and associated tonnage at Chidliak is CH-31, where interpretation of the geophysical and drill data and the distribution of kimberlite float indicate that this kimberlite is over five hectares in size. A 410 metre kimberlite intersection was drilled at CH-31 in a core hole inclined at a 45 degree angle, which equates to an estimated horizontal width of at least 290 metres.

Mr. Eric Friedland, Peregrine’s CEO, said “We continued to discover kimberlites at an unprecedented rate at Chidliak this summer, averaging one kimberlite discovery every two and a half days. This new Canadian diamond district now stretches approximately 70 kilometres in a north-south direction and 40 kilometres east-west and we are confident that Chidliak hosts additional kimberlites with economic diamond potential. There are currently over 300 kimberlite-type geophysical anomalies within the existing airborne geophysical coverage to be evaluated beginning next field season. Also, two kimberlites were discovered this year on our adjacent, 100%-owned Qilaq project, further expanding this phenomenal diamond exploration region.”

Mr. Brooke Clements, Peregrine’s President, said “The discovery of 34 new kimberlites this year by our team at Chidliak further illustrates the very strong exploration potential of this diamond district. We are looking forward to a steady stream of diamond results over the coming months as we prepare for an ambitious 2011 exploration programme. The RC drill rig is perfect for rapidly testing kimberlite targets, and it will be an important exploration tool in future programmes. A very important milestone achieved this year was the discovery of several larger kimberlites with geophysical characteristics that differ from those of the majority of the known kimberlites. The confirmed presence of larger kimberlite bodies and the excellent potential for additional large-scale discoveries further heightens the economic upside of this Project.”

The discovery of 12 new kimberlites at Chidliak brings the total discovered in 2010 to 34, representing a 112 percent increase over the 16 discoveries made in 2008/2009. Of the 50 kimberlite discoveries made so far, 24 have been by prospecting and 26 by drilling. The processing of microdiamond samples from the 2010 kimberlite discoveries has commenced at the Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”), and the results will be reported as they become available. More detailed descriptions of the geology of the kimberlites will be provided with the diamond results.

An exploration summary showing several of the new kimberlite discoveries is available at the following link here.

Eight new Kimberlites Discovered by RC Drilling
The lightweight RC drill rig, which began operating in early August, has proven to be an efficient exploration tool for rapidly testing geophysical anomalies. The primary objective of this year’s RC drilling campaign was to drill-test as many kimberlite-type geophysical anomalies as possible in a short time period, and to obtain material for a preliminary assessment of the diamond potential of any new kimberlites discovered. The CH-39, CH-40, CH-42 through CH-46 and CH-48 kimberlites were discovered in August and September and 24 anomalies were drilled without intersecting kimberlite. For each of the eight RC discoveries, at le