Peregrine Discovers Kimberlite Indicator And Precious Metal Anomalies At Qilaq; 1.5 Million Hectares Of New Prospecting Permits Acquired On Baffin Island

February 4, 2010 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to announce the discovery of kimberlite indicator mineral (“KIM”) and precious metal anomalies at its Qilaq Project (“Qilaq”) on Baffin Island, Nunavut, Canada. Seven of the samples collected in 2009 at Qilaq returned probe-confirmed KIMs, including one sample that returned 405 KIMs, all of which were angular, which is an indication of a proximal kimberlite source. In addition, eight samples returned at least 10 gold grains, and one sample returned 350 gold grains.

On February 1, 2010, the Company was granted 119 prospecting permits covering approximately 1.5 million hectares (15,000 square kilometres) on the Cumberland Peninsula, also on Baffin Island. The new permit group was named the Cumberland Project (“Cumberland”), and its geologic characteristics are considered by Peregrine to be similar to those at Qilaq and Peregrine’s 9,800 square kilometre Chidliak Project (“Chidliak”), making it an ideal diamond exploration target. Peregrine has discovered 16 kimberlites at Chidliak since 2008, with three of these having diamond size distribution characteristics that are consistent with economic potential in arctic settings. Both Qilaq and Cumberland are 100%-owned by Peregrine.

Brooke Clements, Peregrine’s President, stated “The discovery of new, high-priority KIM and precious metals anomalies at Qilaq and the substantial diamond exploration successes we have had at our Chidliak and Nanuq projects since 2007 illustrate that Nunavut has tremendous mineral exploration potential and that it is under-explored relative to other regions of Canada. Both Chidliak and Qilaq started as grass-roots exploration programmes and we plan to apply the same methodology to efficiently evaluate the potential of Cumberland. We have made a strong commitment to working in Nunavut and we look forward to advancing all our exploration projects there in 2010.”

QILAQ
In February, 2009, 86 prospecting permits covering 12,500 square kilometres were acquired bordering Chidliak to the north, east and south. In the summer of 2009, 516 samples were collected to evaluate the Qilaq permit area for its diamond potential. Till and stream sediment samples were collected on a five by five kilometre grid. After analysing the results from the 516 samples, Peregrine chose to acquire four new prospecting permits and relinquish 29 permits, making the new area of Qilaq approximately 854,000 hectares (8,540 square kilometres) in 61 prospecting permits.

Seven of the 516 samples collected at Qilaq returned at least one probe-confirmed KIM. Of particular note was one sample that returned 405 KIMs as follows: 370 ilmenites, 16 p-type pyrope garnets, four e-type garnets and 15 chrome diopsides. All of the 405 KIMs were angular in shape and 20 of the ilmenites and one chrome diopside were greater than one millimetre in size. Angular KIM grains larger than one millimetre are not common in till samples, and are a strong indication of a proximal source. The 16 p-type garnets were analysed by electron microprobe and one of the grains was classified as a high-chrome, low-calcium G10 garnet. G10 garnets are commonly associated with diamond mines throughout the world. One sample, collected 50 kilometres south-southeast of the sample with 405 grains, contained two p-type pyrope garnets, one ilmenite and two chromites. The remaining five samples containing KIMs returned one garnet each. The early exploration history at Chidliak, where Peregrine has discovered an important new diamond district, illustrates the potential significance of the Qilaq results. Five till samples taken in the Chidliak area in 2005 on a 15 by 15 kilometre grid returned one or more probe-confirmed KIMs, with the