October 23, 2013
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) today
provided an update on activities at its 100 percent-owned Chidliak
diamond project (“Chidliak” or “the Project”), located on Baffin Island,
120 kilometres from Iqaluit, the capital of Nunavut, Canada.
After close of business on October 22, Peregrine received written notice
from De Beers Canada Ltd. (“De Beers”) of their decision to not enter
into the earn-in and joint venture agreement regarding Chidliak. This
agreement was first announced on September 5, 2012. The ongoing work and
funding commitments that have previously been made by De Beers will be
completed as agreed.
Mr. Eric Friedland, CEO of Peregrine, stated “Chidliak has benefitted
greatly from De Beers’ involvement over the last year and we are
cognisant of their reasons not to proceed given the challenging mining
market our industry is currently experiencing. Our team looks forward
to advancing Chidliak on a 100 percent ownership basis and we are
fast-tracking the processing of the CH-6 kimberlite bulk sample
collected this spring with initial diamond content and valuation results
anticipated in January, 2014. The results from CH-6 and new
exploration and conceptual mining data generated by De Beers will be
utilized to formulate optimum exploration and sampling programs for 2014
Dense media separation (“DMS”) processing of the initial 250 tonnes of
material from the CH-6 bulk sample was completed on October 18 at the De
Beers Sudbury, Ontario, laboratory. The resulting concentrate is now
in the process of being transported to the Saskatchewan Research Council
(“the SRC”) facility in Saskatoon for final diamond recovery. Diamond
recovery from this first 250 tonne sample is expected to commence in
November with initial diamond content and valuation results reported in
January, 2014. As announced on September 9, 2013, the cost of
processing the first approximately 250 tonnes of bulk sample material
and diamond recovery work at the SRC from the resulting concentrate will
be paid for by De Beers as previously agreed.
De Beers has also agreed to process the remaining approximately 250
tonnes of the CH-6 bulk sample to concentrate and this work will be paid
for by Peregrine at De Beers’ actual cost to process. Processing of
this material has commenced and will be completed in November.
Peregrine and De Beers will be meeting during the first week of November
to complete the handover of all technical and other data as required by
the Option and Subscription agreement signed by the two companies on
September 4, 2012. The data will include the final results from the
2013 field program, operated by De Beers, including the total number of
new kimberlite occurrences that were discovered, final geophysical data,
kimberlite geologic models, all surfical and structural mapping data
and interpretations. Importantly, all new kimberlite targets that have
been defined by De Beers will be provided to Peregrine.
Detailed information regarding plans for the 2014 field season at
Chidliak will be provided in the first quarter of 2014, after receipt of
all the CH-6 diamond valuations and a thorough evaluation of the new
data generated by De Beers this year.
Mr. Alan O’Connor, Professional Geologist, Peregrine’s Chidliak Project
Manager, is a Qualified Person under National Instrument 43-101 and is
responsible for the design and conduct of the programs carried out by
the Company at Chidliak, including the collection of the CH-6 bulk
sample. Mr. Howard Coopersmith, an independent consultant to the
diamond industry, is Peregrine’s external Qualified Person for sample
processing and diamond recovery.
Messrs. O’Connor and Coopersmith have reviewed this release and approve of its contents.
ABOUT PEREGRINE DIAMONDS
Peregrine is a diamond exploration and development company focused on
Canada’s North. The Company has discovered two new diamond districts in
Nunavut, Nanuq in 2007 and Chidliak in 2008. At its 100 percent-owned
Chidliak project, located 120 kilometres from Iqaluit, the capital of
Nunavut, 64 kimberlites have been discovered to date, and Peregrine
collected a bulk sample weighing 508 wet tonnes from the CH-6 kimberlite
in 2013 which is currently undergoing processing for diamond recovery.
A 14.11 tonne sample of drill core acquired from CH-6 in 2010 returned a
grade of 2.84 carats per tonne. At its 72 percent-owned, nine hectare
DO-27 kimberlite in the Northwest Territories, located 27 kilometres
from the Diavik Diamond Mine, a NI 43-101 compliant mineral resource of
18.2 million carats of diamonds in 19.5 million to