Peregrine Provides Chidliak Update And Announces Discovery Of Three New Kimberlites

September 9, 2013 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to provide an update on activities at its 100 percent-owned Chidliak project (“Chidliak” or “the Project”), located on Baffin Island, 120 kilometres from Iqaluit, the capital of Nunavut, Canada. The Chidliak summer exploration program operated by De Beers Canada Inc. (“De Beers”) was completed on August 19. Highlights from this program include the discovery by De Beers of two new kimberlites and the discovery of a kimberlite dyke by government geologists. In addition, possible kimberlite float, which is undergoing final petrographic confirmation by De Beers, was found in numerous other locations. As reported on April 23 and June 5, 2013, Peregrine collected a bulk sample weighing approximately 508 wet tonnes from the CH-6 kimberlite by surface trenching. Approximately 470 wet tonnes of this sample has been transported from Iqaluit to the De Beers dense media separation (“DMS”) facility in Sudbury, Ontario. Approximately ten wet tonnes of kimberlite was processed at the Saskatchewan Research Council (“the SRC”) in July and the approximately 28 wet tonnes of kimberlite material that remains in Iqaluit will be shipped to Sudbury this month. Processing of approximately 250 wet tonnes of the bulk sample by DMS is scheduled to commence in late September at the De Beers DMS facility. This processing will be performed by De Beers and is expected to yield a heavy mineral concentrate weighing approximately 1.8 dry tonnes. Final diamond recovery from this concentrate will be managed by Peregrine and will be undertaken at the SRC. The final diamond recovery process will be initiated upon De Beers delivering to the Company notice of their decision regarding their right to enter into an earn-in and joint venture agreement for Chidliak.

The De Beers summer exploration program at Chidliak included the evaluation of priority geophysical anomalies by prospecting, orientation geophysical surveys, and bedrock and surficial mapping. During the course of the program, De Beers field teams discovered two new kimberlite occurrences and numerous occurrences of possible kimberlite float requiring additional work before being confirmed. The first confirmed discovery is a kimberlite dyke approximately one metre wide associated with a circular magnetic anomaly with an estimated surface expression from ground magnetics of approximately 0.5 hectares. At the second site, kimberlite float was found associated with a circular geophysical anomaly that has an estimated surface expression from airborne magnetics of approximately 0.5 hectares. Concurrent with the De Beers Chidliak exploration program, the Canada Nunavut Geoscience Office (“CNGO”) conducted a bedrock and surficial mapping program over a portion of the Hall Peninsula of Baffin Island. During the course of their fieldwork, the CNGO reported the discovery of a new kimberlite dyke on the Project. In total three new confirmed kimberlites have been discovered in 2013 bringing the total number of kimberlites at Chidliak to 64.

De Beers completed ground geophysical orientation surveys over twelve known kimberlites using the following methods: gravity, electromagnetics, ground penetrating radar and magnetics. The results from these surveys will be used to determine the most effective geophysical technique for discovering additional kimberlites in future exploration programs. To date initial results from the gravity surveys have been reviewed by Peregrine and indicate that most of the known kimberlites that were surveyed have a strong gravity response. Prior to this year, no gravity surveys had been executed on the Project. Peregrine believes that gravity could play a key role in future kimberlite discoveries at Chidliak. A complete summary of the summer exploration program, including confirmation of additional kimberlite discoveries, and results from the other geophysical surveys will be provided after all information from the program has been evaluated by Peregrine.

Approximately 470 wet tonnes of CH-6 bulk sample material is now stored at the De Beers DMS facility in Sudbury, Ontario. De Beers will commence processing approximately 250 wet tonnes of this material in lat