Peregrine Reports Tonnage Estimate And New Microdiamond Results For CH-6 Kimberlite At Chidliak

April 2, 2012 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to report an independently verified tonnage estimate for the CH-6 kimberlite of up to 5.7 million tonnes of kimberlite to a depth of 375 metres below surface. The kimberlite pipe remains open at depth. A detailed technical report, prepared in accordance with National Instrument (“NI”) 43-101, will incorporate this new tonnage estimate. CH-6 is located within the Southern Focus Area on the 100 percent-owned, 8,580 square kilometre Chidliak project (“Chidliak” or “the Project”), Baffin Island, Nunavut, Canada.

New microdiamond results from the CH-6 kimberlite continue to confirm a coarse diamond size distribution. A cumulative 1,512.3 kilogram sample of drill core collected from CH-6 in 2011 yielded 4,867 diamonds larger than the 0.106 mm sieve size, including 166 commercial-size diamonds larger than the 0.850 mm sieve size which weigh a total of 6.77 carats. The Saskatchewan Research Council Geoanalytical Laboratories (“the SRC”) classified the colours of the 166 commercial-size diamonds as follows: 42 percent white/colourless, 40 percent off-white, 14 percent yellow, 3 percent grey and 1 percent brown. The largest four diamonds were described by the SRC as a 0.60 carat off-white aggregate, a 0.43 carat yellow octahedron, a 0.34 carat off-white octahedron and a 0.32 carat white/colourless octahedron.

Mr. Brooke Clements, Peregrine’s President, said “Completion of an independently verified tonnage estimate for CH-6 of 5.7 million tonnes of kimberlite is an important step in advancing the Chidliak project. We are especially encouraged by the microdiamond results from CH-6 which continue to be some of the best ever seen in Canadian diamond exploration. The diamonds recovered to date from CH-6 show a predominance of white/colourless, off-white and yellow colours and a coarse diamond size distribution. Continued evaluation of CH-6, beginning with more core drilling in 2012 and the collection of a bulk sample by reverse circulation drilling in 2013, will confirm the grade of the pipe and is designed to recover a minimum 200 carat parcel of diamonds in order to begin formal diamond valuations.”

CH-6 Tonnage Estimate

Geostrat Consulting Services Inc., a consulting firm specializing in kimberlite geological modeling and resource evaluation, verified the CH-6 tonnage estimate. Based on the current geological model, it is estimated that CH-6 hosts 5.7 million tonnes of kimberlite to a depth of 375 metres below surface. Of the 5.7 million tonnes, 3.6 million tonnes is considered reasonably defined with good drilling support. The remaining 2.1 million tonnes has been identified with limited drilling support and the confidence level of this tonnage will be increased with more drilling. Real potential exists to add significant tonnage at depths below 375 meters.

This tonnage estimate does not constitute a mineral resource and there is no assurance that a resource will be identified through further exploration work of CH-6.

The current geological model of CH-6 was defined from core drilling completed between 2009 and 2011. To date, 12 vertical and 12 inclined drill holes have been completed for a total of 4,701 metres. The geological model was prepared to the base of current drilling at a depth of 325 metres, with an additional projection to 50 metres below the base of drilling, at 375 metres depth. The tonnage estimate was determined using kimberlite volumes from the geologic model and specific gravity data for each geologic unit. The average specific gravity for 323 separate measurements was 2.58 g/cm 3 .

A detailed technical report prepared in accordance with NI 43-101 incorporating this new tonnage estimate will be filed on SEDAR within 45 days.

New Microdiamond Results

The following table summarizes caustic fusion diamond results from the CH-6 kimberlite. The analyses were performed at the SRC.

SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR 2011 SAMPLES FROM THE CH-6 KIMBERLITE
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