Peregrine Release Bulk Sample Results

June 14, 2005 PDF version
2005 Bulk Sample of DO-27 grades an average of 0.98 carats/tonne

Core drilling extends depth of kimberlite to over 465 meters

Resource delineation core drilling program to begin in July

Peregrine’s interest increased to 54.475% plus Operatorship


Eric Friedland, President, Alan Carter, Chief Operating Officer, and Jennifer Pell, Vice-President Exploration-Diamonds, of Peregrine Diamonds Ltd., are very pleased to announce the results of the 2005 mini-bulk sample of the DO-27 kimberlite pipe, which is located 23 kilometers southeast of the Diavik(tm) Diamond Mine, N.W.T., Canada, and only 11 km, via spur road, off of the main Tibbitt to Contwoyto ice road. The DO-27 pipe, which is made up of a main vent and a subsidiary northeastern vent, comprises the southern lobe of what has been previously referred to as the Tli Kwi Cho kimberlite complex. The central portion of the DO27 main vent was tested during the 2005 program and returned an average grade of 0.98 carats per tonne. The main vent of DO-27 alone has a surface expression of over 400 meters by 200 meters (>6 hectares) and, combined with the northeastern subsidiary vent, has a surface area of around 9 hectares.

As outlined in a press release dated April 19th, 2005, Peregrine completed six large diameter (13 ¾ inch) RC drill holes in the DO-27 main vent during early 2005. This amounted to 151.27 dry tonnes of kimberlite which was subsequently processed at the Ekati(tm) Diamond Mine. The tonnages were calculated using measured and estimated hole dimensions and measured specific gravities. Three N.Q. core drill holes were also completed to give geological control on the RC drilling and to provide additional information about the pipe at depth.

Two different primary pyroclastic kimberlite phases were intersected in the portion of the pipe tested by the RC drilling. Holes RC 1, 2, 4, 5, and 6 sampled a layered sequence of primary pyroclastic tuffs in the central portion of the pipe that were rich in chrome diopside and pyrope and contained lesser amounts of fresh olivine. RC 3, the southernmost hole of the program, intersected a completely different volcaniclastic kimberlite facies with high concentrations of fresh olivine. The individual grades and specific diamond information for the six RC holes are summarized below:

DO-27 - Pyrope, Chrome Diopside-Rich Facies
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Drill Total   Sample   Total   Carats  # Stones   Largest
Hole  Depth   Weight   Carat   per     > Half     Stones
       (m)    (Dry     Weight  Tonne   Carat      (Carats)
              Tonnes)  
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RC 1   209     45.74   47.32   1.03      4        2.93, 1.62
RC 2   124     28.96   27.66   0.96      5        1.85, 0.96, 0.94
RC 4    93.5   12.02   11.99   1.00      1        2.66
RC 5    83     12.20   11.66   0.96      3        0.76
RC 6    77      9.54    7.4    0.78      1        0.5
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Total/Average 108.47   106.03  0.98     14  
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<b>DO-27 - Fresh Olivine-Rich Facies</b>
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Drill Total   Sample   Total   Carats  # Stones   Largest
Hole  Depth   Weight   Carat   per     > Half     Stones
       (m)    (Dry     Weight  Tonne   Carat      (Carats)
              Tonnes)  
--------------------------------------------------------------------
RC 3   190.5   42.80   29.93   0.70      7        0.98
--------------------------------------------------------------------

A total of 1806 diamonds were recovered using a 1mm screen. A total of 21 stones larger than one-half carat were recovered with the largest stones coming from the central volcanic kimberlite facies. The four largest stones were a 2.93 carat, light brown, flattened octahedron, a 2.66 carat, off-white, tetrahexahedron, a 1.85 carat, clean, white octahedron, and a 1.62 carat clean, white, complex tetrahexahedron.

The diamonds will now be sent to a number of internationally recognized diamond valuators for complete valuations.

The DO-27 kimberlite was discovered in 1993 by Kennecott Canada Exploration Inc. (KCEI) and partners, and returned promising microdiamond results through core drilling, which encouraged KCEI to forgo a mini-bulk sample stage via large diameter surface drilling, and instead move directly to an underground bulk sampling program in 1994. Technical problems encountered underground resulted in