Peregrine Discovers Third Kimberlite At Chidliak, Baffin Island

September 10, 2008 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to announce a third kimberlite discovery on the Chidliak property (“Chidliak”), Baffin Island, Nunavut, Canada. The kimberlite, designated CH-3, is represented by a collection of kimberlite cobbles and boulders discovered within the boundaries of a semi-circular geophysical anomaly.

The CH-3 kimberlite is located approximately twelve kilometres from CH-1, Peregrine’s first diamond discovery at Chidliak (see August 25, 2008 news release). While field-checking a geophysical anomaly that has a surface area of approximately two hectares (175 m by 125 m), the field crew discovered a collection of kimberlite cobbles and boulders over an area of approximately 500 square metres near the edge of the anomaly. The anomaly is interpreted to represent a kimberlite pipe. The kimberlite material is described as being magmatic with abundant kimberlite indicator minerals including pyrope garnet and olivine, and a large elongated mantle xenolith measuring approximately 25 by 10 cm. Mantle xenoliths are fragments of a portion of the deep earth known as the mantle. These xenoliths are carried to the earth’s surface from depths of 50 to 220 kilometres by volcanic magma such as kimberlite, lamproite, carbonatite and alkali basalt. In kimberlites, the minerals derived from the mantle can include pyrope garnet, olivine, chromite and diamond.

A sample of approximately 200 kilograms of kimberlite collected from CH-3 is being shipped to Saskatchewan Research Council Geoanalytical Laboratories for diamond recovery by caustic fusion. Results are expected in the fourth quarter of this year.

Brooke Clements, President of Peregrine stated, “The discovery of CH-3, twelve kilometres away from what is currently the nearest known diamondiferous kimberlite, CH-1, is a significant milestone for the project. It illustrates the potential for the Chidliak kimberlite district to be very large. High priority kimberlite-type geophysical anomalies with associated and well-defined indicator mineral trains, up to 50 kilometres from CH-3, have yet to be tested.”

Information on the Chidliak property and the CH-3, CH-2 and CH-1 kimberlite discoveries, including maps, photographs and recent press releases are available here.

Peregrine is nearing completion of the field component of the 2008 Chidliak exploration program. Work conducted in 2008 includes a large airborne magnetic/electromagnetic survey, an indicator mineral sampling program, the discovery of three kimberlites and confirmation that the Chidliak kimberlite cluster represents Canada’s newest diamond district. In addition, a significant metals exploration program was completed. A detailed summary of the achievements of the 2008 Chidliak exploration program including the status of ongoing laboratory and geological work, and preparations for the 2009 exploration program, will be reported in the coming weeks.

Mr. Peter Holmes, P. Geo., Peregrine’s Vice President, Exploration, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the programs carried out by the Company on the Chidliak property. Mr. Holmes has reviewed this press release.

For further information, please contact Brooke Clements, President, Eric Friedland, CEO, or Peregrine Diamonds Investor Relations, at 604-408-8880 or at investorrelations@pdiam.com.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Peregrine’s projects and other statements that are not historical facts. When used in this document, the words such as “could,” “commonly,” “confident,” “plan,” “encouraging,” “estimate,” “expect,” “anticipated,” “intend,” “imply,” “likely,” “may,” “potential,” “should,” “scheduled,” “significant,” “suggest”, and similar expressions are forward-looking statements. Although Peregrine Diamonds Ltd. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involv