Peregrine Reports CH-6 Mini-Bulk Grades of 6.8, 3.5, 2.8 and 2.0 Carats per Tonne in Four Samples Totalling 14.11 Tonnes; Exceptional White/Colorless Diamond Population with High Clarity and Superior Shapes

December 6, 2010 PDF version
PEREGRINE REPORTS CH-6 MINI-BULK GRADES OF 6.8, 3.5, 2.8 AND 2.0 CARATS PER TONNE IN FOUR SAMPLES TOTALLING 14.11 TONNES;

EXCEPTIONAL WHITE/COLORLESS DIAMOND POPULATION WITH HIGH CLARITY AND SUPERIOR SHAPES

Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to report that a 14.11 tonne mini-bulk sample of drill core collected from the CH-6 kimberlite returned 40.04 carats of commercial-sized diamonds larger than the 0.85 mm sieve size. The mini-bulk sample was divided into four sub-samples, based on geology. The sub-samples, which were processed separately and ranged in size from 1.03 to 7.56 tonnes, returned diamond grades of 6.81, 3.49, 2.82, and 2.03 carats per tonne (“cpt”). The sub-sample with the highest grade was collected from the upper portion of the pipe. Overall, the 14.11 tonne sample yielded 523 commercial-size diamonds, nine of which weighed 0.50 carat or more, including two diamonds larger than one carat. The largest three diamonds were a 1.29 carat off-white, transparent macle, a 1.02 carat off-white, transparent octahedron, and a 0.99 carat white/colorless, transparent, tetrahexahedron.

Mr. Howard Coopersmith, Peregrine’s external Qualified Person for the sampling and diamond recovery process stated, “Overall, CH-6 shows an exceptional white diamond population, with high clarity and many superior shapes present. There are indications of fancy yellow stones as well, and very few browns or greys. It is expected that larger parcels of CH-6 diamonds would produce valuations comparable to better quality kimberlite diamond mines in the world.”

The CH-6 kimberlite has an estimated surface expression of at least 0.8 hectare based on drilling, is open to expansion in several directions including depth, is covered by only 15 metres of overburden, and is located on the 9,800 square kilometre Chidliak project (“Chidliak” or “the Project”), Baffin Island, Nunavut, Canada. The sample processing and diamond recovery were conducted by the Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”). The diamond results, including the grades for the four geologically distinct sub-samples, Units A through D, and for the final cleanup of the plant equipment after all the samples were processed, are presented in square mesh sieve format in the following table.

SUMMARY OF CH-6 MINI-BULK SAMPLE DIAMOND RESULTS
Kimberlite
Sub-Sample
Sample
Weight
(tonnes)
Numbers of Diamonds According to Sieve Size Fraction (mm) Total
Diamonds
Carats
(+0.85
mm)
Diamond
Grade(cpt)
(+0.85 mm)
+0.85
-1.18
+1.18
-1.70
+1.70
-2.36
+2.36
-3.35
+3.35
-4.75
+4.75
Unit A 1.03