Peregrine Provides Update on 2015 Diamond Resource Development Program

April 23, 2015 PDF version
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. The planned objective of Peregrine’s 2015 Diamond Resource Development program is to confirm the grade estimates and provide representative diamond parcels for the valuation of diamonds recovered from the CH-6, CH-7 and CH-44 kimberlite pipes. Kimberlites bulk sampled in the 2015 program will be included in a planned 2016 Preliminary Economic Assessment on a potential Phase 1 diamond mine development at Chidliak.

2015 DIAMOND RESOURCE DEVELOPMENT PROGRAM

The 2015 bulk sample program provides for the collection of bulk samples from the CH-6, CH-7 and CH-44 kimberlites by large diameter RC drilling (up to 26 inch/66 cm diameter). Drilling commenced on March 21st and to date a total of 851 metres have been drilled over four of six holes planned for CH-7. Table 1 below provides further detail on the drilling completed to date.

TABLE 1: CH-7 LARGE DIAMETER DRILLING PROGRESS - to April 19th.
Hole
ID
Planned TDD
(metres)
Actual TDD
(metres)
Total
Bags
Estimated Bagged Weight
(kgs)
Primary
Lithology
LDD-A 220 219.1 128 104,169 KIM-2
LLD-B 220 222.0 122 107,213 KIM-2
LDD-C 220 Planned - - KIM-2
LDD-D 240 240.0 134 114,781 KIM-3 & KIM-4
LDD-E 240 Currently at 168 86 74,309 KIM-3 & KIM-4
LDD-F 100 Planned - - KIM-5

The drill plan for CH-7 is designed to provide representative samples of the dominant lithologies within the CH-7 kimberlite pipe. The drilling is intended to establish diamond grade, assess grade continuity within CH-7 and obtain parcels of diamonds for valuation. Peregrine will prepare maiden resource statements for CH-7 based on the bulk sample results and their integration with existing microdiamond and geological data.

Planned holes at CH-6 and CH-44 are contingent upon continued winter weather; once the arrival of the spring melt occurs, drilling activities will be forced to shut down. In the event that the program is curtailed before completion, plans have been prepared to complete core drilling at CH-6 in the summer of 2015. This work would focus on providing additional microdiamond data which would enable the conversion of material which is currently classified as a Target for Further Exploration to an Inferred Resource.

2015 Winter Trail

The 2015 Diamond Resource Program provided for the transport of bulk samples from site to Iqaluit by winter trail for eventual southward transportation via sea-lift for processing and diamond recovery. In 2013, Peregrine successfully transported most of the 508 wet tonne bulk sample from CH-6 to Iqaluit over a three week period using a winter trail.

Use of the winter trail in 2015 has been hampered by the lack of snow cover in the region. As a result the Company has been utilizing air transport to move the bulk sample from site to Iqaluit. A total of 368 bags have been moved to Iqaluit through a combination of DC-3, Twin-Otter, AS350 B3 helicopter and Boeing 737 aircrafts. A total of 102 bags re