Peregrine Reports Diamond Grade of 2.70 Carats Per Tonne From CH-6 Bulk Sample

December 3, 2013 PDF version

Peregrine Reports Diamond Grade of 2.70 Carats Per Tonne From CH-6 Bulk Sample

CH-6 Confirmed as One of the Highest Grade Kimberlite Pipes in the World

48 Stones Larger Than One Carat

White/Colourless Diamond Population Dominated by Octahedra Shapes

Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to report that a 222.1 dry tonne bulk sample from the CH-6 kimberlite pipe on Peregrine’s 100 percent owned Chidliak Diamond Project (“Chidliak” or “the Project”) returned a diamond grade of 2.70 carats per tonne, confirming that CH-6 is one of the highest grade kimberlite pipes in the world*. The resulting diamond parcel consisted of 600.5 carats of commercial-size (+0.85 mm) stones including 48 diamonds over one carat in size and 137 diamonds over 0.50 carat in size with the largest diamond weighing 3.54 carats. A very significant portion of the parcel is gem diamonds. The diamond recovery process was completed by the Saskatchewan Research Council (“the SRC”). The CH-6 pipe is one of at least seven kimberlite pipes at Chidliak that are potentially economic.

Diamonds of special note described by the SRC include clean, unbroken white/colourless octahedrons weighing 2.15, 1.74, 1.13 and 1.10 carats, 3.54, 2.05, 1.78, 1.60 and 1.44 carat white/colourless octahedrons with inclusions, a 1.52 carat clean yellow tetrahexahedron and a 2.60 carat clean yellow macle. Photos of some of the diamonds from the bulk sample are available here.

Mr. Howard Coopersmith, Peregrine’s Independent Qualified Person for dense media separation (“DMS”) processing and diamond recovery stated, “The potential for a high quality diamond population at Chidliak that we saw in the 40 carat parcel recovered from the CH-6 kimberlite in 2010 has now been confirmed by this latest 600.5 carat parcel of diamonds. The parcel is overwhelmingly white/off-white in colour, with a potentially important yellow gem population present. The majority of stones show high transparency and high clarity with only minor inclusions or flaws present. Most stones are whole and of good shape, with octahedra and lesser modified octahedra predominating. No indications of significant diamond breakage were noted. Overall this is a very white and clean diamond population with excellent shapes. A significant number of stones, notable in the larger sizes, are sharp octahedra of the highest colour and clarity and should command top prices in the market.”

The shape and colour of the 48 diamonds one carat in size or larger are described by the SRC in the following three tables.

Size Class (Carats) Number of Stones Octahedra 54% White/Colourless 33%
≥ 1 48 Tetrahexahedra 2% Off-white 35%
≥ 2 16 Fragments, Irregulars and Aggregates 31% Yellow 13%
≥ 3 3 Macles 13% Grey and Brown