February 28, 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 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
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.
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.”
The Chalcopyrite Anomaly measures approximately 15 km by 20 km in size
and eight of the 15 sampl