April 2, 2011
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is
pleased to report the discovery of the CH-51 kimberlite by core drilling
on the Chidliak project (“Chidliak”) on Baffin Island, Nunavut, Canada.
CH-51 is the first target drilled in 2011 and the fifty-first
kimberlite discovered at Chidliak since 2008.
CH-51 is located approximately 200 metres south of the CH-17 kimberlite,
ten kilometres south of the CH-28 kimberlite and 40 kilometres north of
the Southern Focus Area. Currently, CH-28 and six kimberlites within
the Southern Focus Area have characteristics consistent with economic
potential in Arctic settings.
CH-51 was discovered by drilling one vertical core hole from lake ice
into a high-priority magnetic high anomaly. Kimberlite was intersected
over an interval of 101 metres from a depth of 33 to 134 metres
underneath 25 metres of water and eight metres of overburden. Mantle
xenoliths, abundant kimberlite indicator minerals and Paleozoic
carbonate rock fragments were observed in the drill core. From 134 to
171 metres, gneiss with minor kimberlite stringers was intersected and
from 171 to 175 metres a macrocrystic kimberlite dyke was encountered.
The hole was terminated in gneiss at a depth of 188 metres. Based on
interpretation of the ground geophysical data, CH-51 has an estimated
surface expression of one hectare.
The drilling of a vertical core hole into the CH-17 kimberlite is about
to commence. CH-17 was discovered in 2010 by core drilling, but
sufficient material for diamond testing was not recovered. Upon
completion of this hole, the rig is scheduled to drill the CH-28
kimberlite and anomaly 440. Discovered by prospecting, CH-28 has an
estimated surface expression of two hectares and as announced on
September 23, 2010, a 239 kilogram sample collected at surface yielded
0.196 carats of commercial-size (+0.85 mm) diamonds. Anomaly 440 is a
magnetic high located approximately five kilometres northeast of CH-28
with an estimated surface expression of one hectare.
A second core rig is scheduled to commence drilling at Chidliak before
the end of this month. After testing lake-based magnetic high anomaly
153, which has an estimated surface expression of two hectares and is
located 20 kilometres southeast of the Southern Focus Area, the rig will
be utilized to drill the CH-33 kimberlite and complete a mini-bulk
sampling program on the CH-31 kimberlite. Based on interpretation of
ground geophysical data, the diamondiferous CH-33 kimberlite has an
estimated surface expression of greater than seven hectares. Diamond
results for CH-33 were reported on January 13, 2011. As reported on
October 29, 2010, CH-31 has an estimated surface expression greater than
five hectares and an 840 kilogram sample yielded 1.39 carats of
commercial-size diamonds including a 1.15 carat stone. Up to seven core
holes will be drilled at CH-31 in an effort to recover approximately
five tonnes of kimberlite.
The reverse circulation (“RC”) drill rig that was stored at Chidliak
over the winter is scheduled to commence drilling priority kimberlite
targets in May. The first target for the RC rig is expected to be
anomaly 551, located 2.5 kilometres northeast of the CH-6 kimberlite.
Anomaly 551 is a subtle magnetic low with a corresponding
electromagnetic signature with an estimated surface expression of seven
A map showing CH-51 and photographs of drill core, as well as images of CH-28 and anomalies 440,153 and 551, are available here
Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%).
Mr. Peter Holmes, P. Geo., Peregrine’s Vice President, Exploration, is a
Qualified Person under NI 43-101 and is responsible for the design and
conduct of the programs carried out by the Company at Chidliak. Mr.
Holmes has reviewed this release and approves of its contents.
For further information, please contact Mr. Eric Friedland, CEO, Mr.
Brooke Clements, President, Mr. Mike Westerlund, Vice President,
Investor Relations and Corporate Communications or Peregrine Diamonds
Investor Relations, at 604-408-8880 or at email@example.com
Forward-Looking Statements: This news release contains
forward-looking statements. All statements, other than statements of
historical fact, that address activities, events or developments that
the Company believes, expects or anticipates will or may occur in the
future (including, without limitation, statements relating to the
proposed exploration program, funding availability, anti