April 7, 2016
NEW HIGH GRADE DOMAIN IDENTIFIED
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to report the outcome of the 2015 Chidliak Resource Development Program for the CH-6 kimberlite pipe at the Company’s 100 percent owned Chidliak Diamond Project, Nunavut, Canada. The Inferred Mineral Resource estimated for the upper 260 metres of the CH-6 kimberlite pipe has increased substantively:
- Tonnage increased by 40 percent from 3.32 million to 4.64 million tonnes, and
- Contained carats increased by 33 percent from 8.57 million to 11.39 million carats.
The revised resource includes a newly identified zone which currently is estimated to contain 3.15 million carats in 0.76 million tonnes, for an estimated grade of 4.16 carats per tonne. Additional tonnage classified as a Target for Further Exploration (“TFFE”) of 2.34 to 3.75 million tonnes has also been identified to a depth of 380 metres below surface at CH-6.
Mr. Tom Peregoodoff, Peregrine’s President and CEO said “When we planned the 2015 Resource Development Program for the CH-6 kimberlite, the challenge was to design a cost effective program that would make a material difference to the Chidliak project. With a simple two hole program and additional microdiamond sampling of existing core, we have exceeded the targeted resource expansions we initially envisaged. The 33 per cent uplift in the CH-6 diamond resource announced today should have a positive material impact on the outcome of the Preliminary Economic Assessment (“PEA”). Work continues on the maiden Inferred Mineral Resource for the CH-7 kimberlite and I look forward to its completion in early May and its incorporation into the PEA.”
CH-6 INFERRED MINERAL RESOURCE UPDATE AND TFFE ESTIMATE
The Company announced an Inferred Mineral Resource of 8.57 million carats in 3.32 million tonnes for the CH-6 kimberlite on January 26, 2015. On February 26, 2014, the Company announced an average price per carat of US$213 for 1,013.5 carats of CH-6 diamonds as valued by WWW International Diamond Consultants Ltd (“WWW”).
The 2015 Resource Development Program for CH-6 was comprised of the drilling and representative microdiamond sampling of two core holes totalling 520 metres in length, as well as additional microdiamond sampling from archived drill core. Results for 1,071.9 kg of microdiamond sampling were released on November 17, 2015 together with guidance that 1.0 to 1.2 million tonnes, or 2.5 to 3.1 million carats, could be added to the CH-6 resource base.
The updated Inferred Mineral Resource for the CH-6 kimberlite is provided in the following table.
CH-6 KIMBERLITE INFERRED MINERAL RESOURCE ESTIMATE*
(carats per tonne)
|* stated at 1.18 mm square-mesh sieve bottom cut-off and diamond recoveries as experienced in the 2010 and 2013 CH-6 bulk sampling programs. The updated CH-6 Inferred Resource extends from surface to an elevation of 420 metres above sea level, or approximately 260 metres depth below surface.
** relative to January 26, 2015 CH-6 Inferred Resource of 8.57 million carats in 3.32 million tonnes
The updated resource estimate for CH-6 was generated by Mineral Services Canada Inc. (“Mineral Services”) based on a recently completed comprehensive review of geological attributes, microdiamond and bulk sampling results for the CH-6 kimberlite pipe. This work has confirmed the previous interpretation of the major geological units at CH-6 which remain recognized as the volumetrically dominant KIM-L and the subordinate KIM-C units, the latter un