Peregrine Discovers Strong Platinum And Base Metal Anomalies On Chidliak, Baffin Island

February 28, 2008 PDF version
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 three separate areas with high concentrations of metals indicator minerals on the Chidliak Property (“Chidliak”), Baffin Island, Canada. Chidliak is situated approximately 150 kilometres northeast of Iqaluit, capital of Nunavut. Highly anomalous concentrations of the platinum-bearing mineral sperrylite, the zinc-bearing mineral gahnite and the copper-bearing mineral chalcopyrite were recovered from till samples collected in 2007.

These metals results, together with the encouraging kimberlite indicator mineral results for Chidliak announced on February 19, 2008, prompted the Company to apply, on a confidential basis, for prospecting permits that increased the size of the property by 50% to 980,000 hectares. Receipt of these permits was confirmed on February 1, 2008 by the Nunavut Mining Recorder.

A map showing the Chidliak property and Peregrine’s complete 2.7 million hectare land position on Baffin Island is available at here.

Metals Anomaly Areas
All of the 970 till samples collected from Chidliak in 2006 and 2007 by Peregrine were sent to Overburden Drilling Management (“ODM”) in Nepean, Ontario for kimberlite indicator mineral and metamorphic or magmatic massive sulphide indicator mineral analyses. ODM is an internationally recognized laboratory specializing in identifying kimberlite indicator minerals and indicator minerals associated with metallic ore deposits

Of the 970 samples collected on Chidliak, 220 contained at least one grain of either sperrylite, gahnite or chalcopyrite. In addition, approximately 350 of the 970 samples contained at least one gold grain with two samples containing over 100 gold grains. A mineral grain is a piece of that particular mineral recovered from a till sample concentrate that is generally less than 0.25 mm in size. Some of the gahnite and chalcopyrite grains were larger than 0.25 mm in size.

The three distinct metals anomaly areas on Chidliak are referred to as the Sperrylite Anomaly, the Gahnite Anomaly and the Chalcopyrite Anomaly.

Sperrylite Anomaly
The Sperrylite Anomaly occurs over a broad area measuring approximately 10 km by 10 km. Of the 44 samples collected in this area, 17 contiguous samples contained anomalous sperrylite grain counts. Several samples outside of the Sperrylite Anomaly area also contain sperrylite including one sample with 60 sperrylite grains and 10% by weight of the mineral goethite. Goethite is present in gossans, which consist of iron-bearing weathered material that can overlie sulphide-associated deposits. Additionally, adjacent samples contained the minerals pyroxene and olivine. Pyroxene and olivine are associated with ultramafic rocks, the dominant source rocks for platinum/palladium and nickel mineralization.

Sperrylite is a platinum-bearing mineral that is often associated with rocks that contain platinum, palladium and nickel. Stuart Averill, President of ODM stated “Similar sperrylite grains recovered from till elsewhere in Canada were invariably found within a few hundred metres of their bedrock sources. The Chidliak Sperrylite Anomaly is the strongest we have seen from an exploration survey and is similar to an anomaly obtained from an orientation test at Sudbury”. Sudbury, Ontario is Canada’s most prolific nickel producing region.

Gahnite Anomaly
The Gahnite Anomaly is approximately 2 km by 2.5 km in size and nine of ten samples collected within the area contained highly anomalous concentrations of gahnite ranging from 47 to approximately 1,600 grains. Gahnite is a primary indicator mineral for metamorphosed massive sulphide lead-zinc-silver-copper deposits like the famous Broken Hill deposit in Australia. Mr. Averill stated “This is one of the strongest gahnite anomalies we have seen.”

Chalcopyrite Anomaly
The Chalcopyrite Anomaly measures approximately 15 km by 20 km in size and eight of the 15 samples collected within the area contained chalcopyrite grains. One sample contained 320 chalcopyrite grains which is considered to be highly anomalous. Chalcopyrite is a very common mineral in copper deposits but usually only a small proportion of the grains survive in weathered glacial till.

2008 Work
Peregrine is highly encouraged by the discovery of these metals anomalies on Chidliak. Planning is underway for an aggressive 2008 exploration field program for both diamonds and metals. The primary goal of the metals program will be to discover bedroc