June 20, 2016
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to announce the filing of a National Instrument (“NI”) 43-101 technical report titled “Mineral Resource Estimate for the Chidliak Project, Baffin Island, Nunavut” and dated effective June 3, 2016 (the “Technical Report”) for its 513,249 hectare Chidliak project and the adjacent 51,147 hectare Qilaq project, located approximately 120 kilometres north-east of Iqaluit, the capital of Nunavut. The Technical Report is an update to a report dated February 23, 2015 and supports an updated 11.39 million carat Inferred Resource at CH-6 that was announced by news release dated April 7, 2016, and a maiden 4.23 million carat Inferred Resource at CH-7 that was announced May 5, 2016.
The Technical Report also summarizes the work completed in 2015 as part of the Chidliak Diamond Resource Development Program, which included additional core drilling and microdiamond sampling completed at CH-6 and CH-7, and the large-diameter reverse circulation drill program completed at CH-7. Core drilling completed at CH-6 and CH-7 resulted in increased tonnage estimates of targets for further exploration (“TFFE”) for those kimberlite pipes.
Preliminary Economic Assessment Update
Work on the Preliminary Economic Assessment by JDS Energy and Mining Inc. (“JDS”) continues on schedule. Peregrine expects to receive the initial results in late June as previously announced.
The CH-6 and CH-7 Inferred Mineral Resource estimates were prepared by Mineral Services Canada Inc. under the supervision of Dr. Tom Nowicki. Dr. Nowicki is a Professional Geologist and an independent, external Qualified Person and a consultant to Peregrine. Mr. Dino Pilotto of JDS Energy and Mining Inc. is a Professional Engineer and an independent, external Qualified Person that consults to Peregrine. Mr. Howard Coopersmith of Coopersmith & Associates Ltd. is a Professional Geologist and an independent, external Qualified Person and a consultant to Peregrine. Dr. Herman Grütter, Professional Geologist and Peregrine’s Vice President, Technical Services, is a Qualified Person and is responsible for the design of the Diamond Resource Development Program at Chidliak.
Dr. Nowicki, Mr. Pilotto, Mr. Coopersmith and Dr. Grütter have reviewed this release and approve of its contents.
About Peregrine Diamonds
Peregrine is a TSX listed diamond exploration and development company with assets located in northern Canada and Botswana.
Peregrine’s core asset is its’ 100 percent-owned, 513,249 hectare Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut where 71 kimberlites have been discovered to date with eight being potentially economic. An Inferred Mineral Resource of 11.39 million carats in 4.64 million tonnes of kimberlite at an average grade of 2.45 carats per tonne has been defined for a portion of the CH-6 kimberlite. In addition, a Target for Further Exploration (“TFFE”) of 2.34 to 3.75 million tonnes of kimberlite to a depth of 380 metres below surface has been identified at CH-6. An independent diamond valuation by WWW International Diamond Consultants, of a 1,013 carat parcel of diamonds from CH-6 returned an average market price of US$213 per carat and modeled prices that range from a minimum of US$162 per carat to a high of US$236 per carat, with a base model price of US$188 per carat (all using the February 24, 2014 price book). An Inferred Mineral Resource of 4.23 million carats in 4.99 million tonnes of kimberlite at an average grade of 0.85 carats per tonne has been defined for a portion of the CH-7 kimberlite. In addition, TFFE of 0.90 to 2.36 million tonnes for a depth range of 240-320 metres has been estimated for the CH-7 kimberlite. An independent diamond valuation by WWW International Diamond Consultants, of a 735.75 carat parcel of diamonds from CH-7 returned an average market price of US$100 per carat and modelled prices that ranged from a minimum of US$94 per carat to a high of US$155 per carat, with a base model price of US$114 per carat (all using the February 1, 2016 price book). A TFFE of 1.27 to 3.19 million tonnes to 250 metres depth has been estimated for the CH-44 kimberlite pipe. The TFFE’s identified above are conceptual in nature and are not Mineral Resources. It is uncertain whether further exploration will res