Peregrine Provides Chidliak Project Update And Encouraging Diamond Results From The CH-46 Kimberlite

June 24, 2014 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to provide an activity update on its 100 percent-owned Chidliak project (“Chidliak”), located 120 kilometres from Iqaluit, the capital of Nunavut, Canada. In March and April, 2,250 line kilometres of ground geophysics was completed over priority areas. In addition, 24 overburden profile holes were drilled with a small diameter reverse circulation (“RC”) rig on the CH-7 and CH-44 kimberlites, confirming shallow overburden depths of less than three metres over these pipes. Logistical and technical preparations continue for the planned 2015 bulk sampling program where at least three kimberlites will be evaluated by large diameter RC drilling. New diamond results from the CH-46 kimberlite, which was discovered by RC drilling in 2010, are consistent with economic potential. New diamond results from samples of drill core collected from the CH-1, CH-7 and CH-44 kimberlites in 2012 further support the determination that these kimberlites have economic potential.

WINTER 2014 FIELD PROGRAM AND BULK SAMPLE PREPARATION
In March and April, a total of 2,250 line kilometres of high resolution ground magnetic surveying was completed over an area that includes the Southern Priority Area. The Southern Priority Area hosts seven kimberlites with economic potential including CH-6, CH-7 and CH-44 that are scheduled for bulk sampling in 2015, and CH-46. The surveys were completed to refine the interpretation of kimberlite indicator mineral anomalies and to generate additional priority kimberlite targets.

During April, fifteen overburden profile holes were drilled at CH-44 and nine were drilled at CH-7 to assist with the preparation of geologic models and prepare for future bulk sampling programs. Average overburden depths over the kimberlites are 2.5 and 2.7 metres respectively. This confirms that CH-44 and CH-7 are amenable to the collection of bulk samples by trenching to obtain parcels of diamonds suitable for valuation.

Preparations underway for a 2015 bulk sampling program by large diameter RC drilling include the following:
  • Modifications to the large diameter RC rig by Cooper Drilling Canada Inc. to allow for the drilling of holes up to 61.0 cm (24 inches) in diameter and the collection of approximately 75 tonnes of kimberlite per 100 metres drilled
  • Procurement and fabrication of support equipment including transport vehicles, water tanks and fuel tanks
  • Preparation for shipping the drill, supplies and support equipment to Iqaluit by sealift this fall
  • Logistical preparations at the Chidliak site
  • Bulk sample drill hole selection to ensure optimum representative sampling in 2015
INITIAL CH-46 DIAMOND RESULTS
The CH-46 kimberlite was discovered in 2010 by RC drilling of a magnetic anomaly with an estimated surface expression of 0.9 hectares as determined by ground magnetics. CH-46 is located 1.4 km south-southeast of CH-7 and 1.5 km north-northwest of CH-44. Peregrine has recently undertaken a review of all known kimberlites within the Southern Priority Area. This work highlighted the potential economic signifigance of CH-46. An 80 kilogram sample of RC chips from CH-46 has been analyzed and it yielded 246 diamonds larger than the 0.106 mm sieve size, including two diamonds larger than the 0.600 mm sieve size. These diamond results are encouraging and suggest that CH-46 has economic potential. The CH-46 kimberlite will be the subject of a future core drilling program to better assess diamond content and constrain the size and geology of the pipe.

CH-1, CH-7 and CH-44 DIAMOND RESULTS
In 2012, three core holes totalling 637 metres were drilled into the CH-1 kimberlite to better constrain its size and geology. A cumulative 351.68 kilogram sample of drill core collected from the three holes returned 411 diamonds larger than the 0.106 mm sieve size, including nine diamonds larger than the 0.85 mm sieve size. CH-1 was discovered by prospecting in 2008. That year, a combined 2.28 tonne sample collected from outcrop and surface float returned a grade