February 12, 2008
Mr. Brooke Clements, President and Mr. Eric Friedland, Chief Executive
Officer of Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) are
pleased to report that the Company has discovered strong, large scale
uranium anomalies that were identified as a result of Peregrine’s
on-going diamond exploration programs on Baffin Island, Nunavut, Canada.
On February 1st, 2008, the Nunavut Mining Recorder approved Peregrine’s
application for 76 prospecting permits, totalling over 1.3 million
hectares (13,000 km2), on Baffin Island. Most of the permits are
situated in two new areas, Flint Lake and Kimmirut, where the strong
uranium anomalies were discovered. The remainder of the permits
acquired are peripheral to Peregrine’s existing Chidliak property, where
diamond, nickel, copper, zinc, and platinum/palladium anomalies have
been identified by the Company.
The Flint Lake and Kimmirut permits cover areas where highly anomalous
concentrations of the uranium-bearing mineral uraninite-thorianite were
recovered from till samples collected by the Company in 2007. Uraninite
is the principal ore mineral in most uranium mines throughout the
world. Thorianite is the thorium analog of uraninite.
Uraninite-thorianite is a mineral having varying proportions of uranium
On Flint Lake and Kimmirut, 418 of the 495 total till samples collected
and analyzed, or 84%, had uraninite-thorianite mineral grain counts of 5
grains or more which is considered anomalous. A total of 156 samples
had grain counts of 100 or more per sample, 24 samples had 500 grains or
more per sample and one sample contained an estimated 20,000 grains. A
uraninite-thorianite mineral grain is a physical piece of
uraninite-thorianite that is greater than 0.025 mm in size.
All of the till samples collected from the Flint Lake and Kimmirut
properties in 2007 were sent to Overburden Drilling Management (“ODM”)
in Nepean, Ontario for metamorphic or magmatic massive sulfide indicator
mineral analyses. ODM is an internationally recognized laboratory
specializing in identifying indicator minerals associated with uranium
and other metallic ore deposits. Stuart Averill, President of ODM,
stated “We have been observing sediment samples from many parts of the
world since 1976. In our experience it is rare to observe
uraninite-thorianite in heavy mineral concentrates. The high counts
observed in the Peregrine samples are exceptional”.
A map showing Peregrine’s complete 2.7 million hectare land position on Baffin Island is available here
Flint Lake Property
The 300,000 hectare Flint Lake property is located approximately 600
kilometres northwest of Iqaluit on west-central Baffin Island. A total
of 124 of 195 till samples collected on the property contained 5 or more
grains of uraninite-thorianite, 45 of these samples contained over 100
grains or more and 17 had 500 grains or more. A well-defined
uraninite-thorianite anomaly covers an area of 15 km by 20 km. Fourteen
of the 16 samples collected within this anomalous area contained 200 or
more uraninite-thorianite grains each and ten contained 1,000 or more
grains each, including the sample with 20,000 grains.
Pyrite, chalcopyrite and gold grains were also recovered from several
samples in the anomalous uranium area. An iron oxide copper gold (IOCG)
deposit that contains uranium, such as BHP Billiton’s world-class
Olympic Dam Mine in Australia, is a potential exploration target at
The 655,000 hectare Kimmirut property is located on southern Baffin
Island, approximately 80 kilometres southwest of Iqaluit. A total of
294 of 300 till samples from the property, or 98%, contained five or
more grains of uraninite-thorianite, 111 of these samples contained 100
grains or more and seven had 500 grains or more. A well-defined
uraninite-thorianite anomaly covers an area of 5 km by 20 km. All of
the 13 samples collected within this area contained between 200 and
3,000 mineral grains, with five containing 1,000 or more grains each.
Results are pending for 90 additional till samples collected from the
Kimmirut property in 2007.
Potential uranium deposits on the Kimmirut property could be related to
unconformities between Archean gneisses and Proterozoic granites and an
overlying Proterozoic meta-sedimentary unit, or to a magmatic source.