Peregrine Provides Chidliak Diamond Project Update

September 2, 2014 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to provide an update on its 2014 field activities and plans to advance its 100 percent-owned Chidliak diamond project (“Chidliak” or the “Project”). Chidliak is located 120 kilometres northeast of Iqaluit, the capital of Nunavut, Canada. The primary goal of Peregrine’s 2014 and 2015 Chidliak work programs is to confirm a resource base in three kimberlites with economic potential, CH-6, CH-7 and CH-44. This resource base could form the foundation of an independent, NI 43-101-compliant Preliminary Economic Assessment (“PEA”) in 2016.

This season a total of 3,305 metres of core drilling was completed at CH-6, CH-7 and CH-44. The drill program was designed to allow conversion of kimberlite tonnage currently classified as a target for further exploration (“TFFE”) into the Inferred Resource category upon completion of the 2015 bulk sampling program. A total of 994 metres of small diameter reverse circulation (“RC”) drilling designed to constrain overburden depth and obtain kimberlite contacts at surface has also been completed to date on the three kimberlite bodies.

Exploration activities are ongoing and are focussed on the Southern Priority Area. A new kimberlite, CH-68, has been discovered in this area by prospecting.

Preparations for the 2015 bulk sample program are nearing completion and mobilization of the drill rig and ancillary equipment to Iqaluit has commenced. Assuming successful closure of the current rights offering, bulk sampling by large diameter (up to 26 inch, 66 cm) RC drilling will commence in 2015 on CH-6, CH-7 and CH-44 to confirm continuity of diamond grade throughout the bodies and to obtain parcels of diamonds for valuation. The bulk sampling results, together with the work being completed in 2014, will then be used to estimate the tonnage and grade for each of the pipes. A new resource statement for CH-6 would be prepared and If diamond valuation results warrant, maiden resource statements for CH-7 and CH-44 will be prepared.

Mr. Eric Friedland, Peregrine’s Chairman and CEO stated “Since we received the maiden resource statement at CH-6, Peregrine has been carefully analyzing how to advance Chidliak in the most efficient and effective way possible. Based on this work we have made the strategic decision to focus on proving up resources that will support the delivery of a PEA in 2016. CH-6 potentially has some of the highest rock value in the world for a diamond deposit and that resource, combined with potential resources at CH-7 and CH-44, would provide the basis for the completion of the PEA. In addition, we will continue to evaluate other known kimberlites with economic potential as well as high priority exploration targets.”

2014 CHIDLIAK RESOURCE DEFINITION UPDATE
The majority of the Company’s exploration efforts in 2014 are being devoted to advancing CH-6, CH-7 and CH-44 through the PEA stage. The ongoing work program includes the following activities:
  • TFFE to Resource Conversion at CH-6. Core drilling at CH-6 is designed to convert kimberlite above 250 metres depth currently classified as a TFFE into the Inferred Resource category. This summer, 1183 metres in five holes were drilled at CH-6 (Table 1). In addition,15 small diameter RC holes, totalling 225 metres were completed at CH-6 to better constrain the surface expression of the pipe. Up to six additional RC holes will be drilled prior to the end of this field program. Data from the core and RC drilling, along with new microdiamond analyses will be incorporated into a revised resource statement for CH-6, which is expected in late 2014.
  • Resource Definition Drilling at CH-7 and CH-44. A total of 1,128 metres of core drilling in seven holes was completed at CH-7 and 994 metres in six holes was completed at CH-44 (Table 1). A total of 769 metres of small diameter RC drilling in 42 holes was completed at the two kimberlites in July and August. The 2014 drill data will be used to prepare revised tonnage estimates for CH-7 and CH-44 in late 2014. Core and RC drilling completed this year at CH-7 and CH-44 is designed to:
    • Ensure that the geologic models are sufficiently constrained to allow declaration of Inferred Resources in the future if diamond valuation results obtained from the planned 2015 bulk sample program warrant.
    • Confirm additional tonnage not yet i