March 31, 2016
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to provide an update on its Botswana diamond exploration program. The Company’s primary assets in Botswana are 11 prospective diamond Prospecting Licences that cover 6,613 km2 . The 2015 diamond exploration program focused on the Moralane and Malolwane areas and included drill testing of four priority kimberlite targets in the Moralane block. In addition, Peregrine secured three new licences covering the diamondiferous Sikwane kimberlites. The 2016 work program will focus on core drilling of the Sikwane kimberlites and target verification in the Mmashoro and Sikwane project areas.
2015 Work Program Update
The 2015 exploration program focused on two main target verification projects at Moralane and Malolwane, and limited target generation work at Gope and Nata.
The Moralane license covers 664 km2 and hosts a compelling Kimberlite Indicator Mineral (“KIM”) anomaly with associated isolated magnetic anomalies. Microprobe-confirmed KIM compositions define a unique, diamond-compatible signature that cannot be matched to indicators from known kimberlite clusters in the region. Previous operators in the area focused their drilling on the highest indicator mineral counts and drilled shallow holes to reach the basal Kalahari sequences.
Approximately 170 km of high resolution ground magnetics were acquired over 11 targets in the Moralane license. The results were used to identify and prioritize four drill targets possibly representing syn-or pre-Karoo intrusives that would be deeper than previous drilling. A total of 570 m of reverse air blast (“RAB”) drilling was completed on the four targets in 2015. No kimberlites were intersected.
At Moralane, a 170 m hole on a 15 ha remnant magnetic high (G89-15-10 North) intersected Lebung and Beaufort Group sandstones and siltstones and terminated in Ecca Group carbonaceous siltstones and minor coal measures. A 100 m hole drilled on an 8 ha textured magnetic low (G89-15-10 South), intersected similar Lebung and Ecca group sedimentary rocks and terminated in a monzogranite. A 150 m hole was drilled on a 20 ha magnetic dipole (G89-15-11) which encountered mainly Lebung and Beaufort sandstones and siltstones, terminating in Ecca Group carbonaceous siltstones and minor coal measures. A 150 m hole was drilled on a 38 ha magnetic dipole (G89-15-RC03) encountering Lebung and Beaufort Group sandstones and siltstones. Processing of downhole KIM samples is ongoing and results will guide follow-up programs. Detailed interpretation of the drill logs together with regional geophysics is in progress to better understand the structural geology of the area.
In the Malolwane license, which covers 251 km2, a KIM sampling program was completed during which a total of 288 samples were collected. The samples were processed at the in-house sample treatment facility and sorted to recover KIMs. Several KIMs were recovered, including ilmenite and chromite. Additional in-fill KIM sampling to define drill targets is being planned.
At Gope, Peregrine holds two licences covering 1,001 km2. In 2004 a detailed, low level aeromagnetic survey was flown by the previous operator. The survey identified numerous priority targets to the north of the known Gope kimberlites. The previous program was terminated before these targets had been drill tested. Reinterpretation of the Gope low-level aeromagnetic survey by Peregrine has identified 20 priority magnetic targets. Ten of these targets were prioritised for target-scale KIM sampling and forty 60 litre screened samples were collected during November 2015. The samples were submitted for KIM extraction and a kimberlitic garnet was recovered from one of the targets. In addition, four garnets were reported by a previous operator from samples collected over an additional magnetic anomaly in the licence, though the target remains untested. Low-count KIM recoveries are significant in thick Kalahari sand covered areas and further work at Gope is planned.
At Nata, Peregrine holds four licences covering 3,830 km2. Regional airborne geophysics has highlighted a number of magnetic anomalies in an area favourable for kimberlite intrusives but this program has not been prioritised for any exploration work during 2016.
The Company continues to expand its land position in Botswana. A new prospecting licence, that includes the diamond-bearing Sikwane kimberlites, has recently been acquired. These kimberlites were originally discovered by De Beers in 1997. The license covers 453 km2 and hosts previously drilled diamondiferous kimberlite intersections with compelling KIM chemistry and unresolved KIM and magnetic anomalies.
2016 Work Program
The planned 2016 work program will focus on target drilling and target verification by ground truthing. The program is expected to commence in mid-April and continue until late