Peregrine Discovers Four New Kimberlites and Completes 11,000 Line-Kilometre Airborne Geophysical Survey at Chidliak

June 2, 2011 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to report the discovery by drilling of four new kimberlites, CH-52 to CH-55, on the Chidliak project (“Chidliak”). Chidliak is located on southern Baffin Island approximately 100 kilometres northeast of Iqaluit, the capital of Nunavut, Canada. The company has discovered five kimberlites since April of this year, bringing to 55 the total number of kimberlites discovered at Chidliak since August, 2008. Seven of the 35 kimberlites tested for diamonds to date have characteristics consistent with economic diamond mining potential in Arctic settings. In addition to the new discoveries, core holes were drilled into the CH-17 and CH-28 kimberlites that were discovered in 2010 and an 11,000 line-kilometre heli-borne magnetic/electromagnetic geophysical survey was completed. Two core rigs and a reverse circulation (“RC”) rig are currently drilling at Chidliak.

Drill core obtained this year from the CH-51, CH-53, CH-54, CH-55, CH-17 and CH-28 kimberlites and RC drill cuttings from the CH-52 kimberlite will be analyzed for diamonds by caustic fusion at the Saskatchewan Research Council Geoanalytical Laboratories. Results of the analyses are expected in the third quarter.

Mr. Brooke Clements, President of Peregrine, said “We continue to discover kimberlites at a very fast pace at Chidliak, and we believe that many more will be found in this rapidly growing new Canadian diamond district. We are particularly pleased to have already identified seven kimberlites with economic diamond mining potential in Arctic settings and we are confident that we will add to this group with additional discoveries this season.”

The CH-52 kimberlite is located approximately 200 metres east of Sunrise camp and has an estimated surface expression of one hectare based on the interpretation of ground geophysics. It was discovered by the drilling of one vertical RC hole that intersected 25 metres of overburden and 21 metres of gneiss before intersecting 19 metres of kimberlite. The hole was terminated in kimberlite at 65 metres. As is the plan with all kimberlites discovered by RC drilling, CH-52 will be evaluated by core drilling if the initial diamond results are favourable.

The CH-53 kimberlite was discovered by drilling one core hole at an inclination of -50 degrees into a magnetic high anomaly located approximately five kilometres northeast of CH-28. The hole intersected 8 metres of ice and water, followed by 40 metres of overburden and 32 metres of gneiss. Kimberlite was intersected from 80 to 170 metres, and the hole was terminated at 215 metres. Based on interpretation of the ground geophysical and drill data, CH-53 has an estimated surface expression of one hectare.

The CH-54 kimberlite is located approximately 11 kilometres northeast of Sunrise camp and is associated with a kimberlite indicator mineral train. One vertical core hole drilled into CH-54 intersected kimberlite breccia at a depth of 43 metres after passing through 25 metres of ice and water and 18 metres of overburden. Kimberlite with variable amounts of gneiss and country rock breccia was intersected from 43 to 114 metres, followed by country rock with minor kimberlite to 143 metres, and then kimberlite with approximately 15 percent country rock to a depth of 160 metres. The hole was terminated at 195 metres after passing through 35 metres of gneiss. CH-54 has an estimated surface expression of one hectare, based on the interpretation of ground geophysical data.

The CH-55 kimberlite is located approximately 16.5 kilometres south of the CH-17 and CH-51 kimberlites. One core hole inclined at -45 degrees intersected kimberlite breccia at 51 metres after passing through nine metres of overburden followed by 42 metres of gneiss. The hole was terminated at 183 metres after intersecting 108 metres of kimberlite, followed by 24 metres of gneiss. A second hole, inclined at -60 degrees is currently being drilled from the same setup. CH-55 has an estimated