July 21, 2015
Peregrine Diamonds Ltd. (“Peregrine” or the “Company”) (TSX:PGD) is
pleased to provide an update on its 100 percent-owned Chidliak diamond
project (“Chidliak” or the “Project”). Chidliak is located 120
kilometres northeast of Iqaluit, the capital of Nunavut, Canada.
Peregrine’s 2015 field work program is focused on continued expansion of
the Chidliak diamond resource. A recently completed independent review
by Mineral Services Canada Inc., the Company’s external Qualified
Person, has highlighted an approximate one million tonne resource
expansion opportunity for the CH-6 kimberlite. Both the resource
expansion at CH-6 and the scale of the maiden resource declaration at
CH-7 are contingent on the implementation of limited key additional
exploration and evaluation work, which is underway and results of the
2015 CH-7 bulk sample. Existing drillcore from CH-6 and CH-7 is
currently being sampled to improve geological and microdiamond
characterization of certain kimberlite units, and similar sampling will
occur throughout approximately 1,200 m of new core to be drilled at CH-6
and CH-7 during the summer 2015 work program. Successful integration of
the core sampling results with the 2015 bulk sample results will enable
the Company to maximize the Inferred Resource estimates for both CH-6
and CH-7. The revised Inferred Resource base will be included in a
planned Preliminary Economic Assessment on a potential Phase 1 diamond
mine development at Chidliak, expected in the second quarter of 2016.
2015 BULK SAMPLE UPDATE
The 2015 bulk sample program consisted of six large-diameter drill holes
drilled to a maximum depth of 240 metres at CH-7, and the airlift of
558.5 wet tonnes of screened CH-7 kimberlite to secure storage
facilities in Iqaluit. Since processing capacity at the Dense Media
Separation (“DMS”) plant of the Saskatchewan Research Council (“SRC”)
could not be secured until early August 2015, the Company suspended
plans to airlift a portion of the CH-7 bulk sample to Saskatoon in June.
The entire bulk sample is scheduled for transportation by sealift and
road to the SRC. The first sealift is expected to depart Iqaluit on or
about July 26, and the SRC is scheduled to commence bulk sample
processing through its ten tonne per hour DMS plant in mid August.
The Company expects processing of the CH-7 bulk sample to a concentrate
to be completed on or before November 15, 2015. Diamond recovery is
expected to be completed by early December with initial diamond grade
results being released shortly thereafter. Independent diamond valuation
results are expected early in the first quarter of 2016.
SUMMER 2015 PROGRAM
Mineral Services Canada Inc. and the Peregrine technical team have
recently completed a review of the current Inferred Resource and Target
For Further Exploration (“TFFE”) at CH-6, and the TFFE for CH-7.
Incorporation of the 2014 Diamond Resource Development program results
and the spatial distribution of 2015 bulk samples from CH-7, has
highlighted opportunities to further constrain geological and grade
continuity within key kimberlite units through the implementation of
limited additional exploration work. This could lead to significant
potential increases of contiguous tonnage and grade domains at the two
kimberlites. The planned summer 2015 Diamond Resource Development
program is focused on proving up these resource expansion opportunities
ahead of the planned 2016 Preliminary Economic Assessment.
The planned summer 2015 work program is comprised of the following four key elements:
- Sampling of Existing CH-6 Core. Expand microdiamond
and ancillary data sets for the southern, northern and at-depth
portions of CH-6 by collecting some 700 kilograms of representative
samples from six previously drilled core holes. This work is currently