Peregrine's Comprehensive 2011 Field Program Sets Stage For 2012 Bulk Sampling at Chidliak

September 12, 2011 PDF version
Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) is pleased to announce the successful completion of this year’s field program at the Chidliak diamond project (“Chidliak” or “the Project”) located 120 kilometres from Iqaluit on Baffin Island, Nunavut, Canada. One major objective of the program was to continue the detailed exploration of kimberlites with economic potential, in preparation for bulk sampling. The drilling of over 5,500 metres on six high-potential kimberlites, and extensive logistical planning and arrangements, have set the stage for bulk sampling of select kimberlites by way of large diameter reverse circulation (“RC”) drilling, which is scheduled to commence in the first quarter of 2012. The bulk sampling program aims to extract roughly 200-carat diamond parcels per kimberlite to support independent diamond valuations, considered a crucial step towards determining economic viability. Another objective this past season was to find new kimberlites, and with the recent discovery of CH-59, nine kimberlites were discovered this year bringing the current number of known kimberlites at Chidliak to fifty-nine.

In 2011, core drilling was completed on six of the seven kimberlites with economic potential identified on the Project to date, CH-6, CH-7, CH-28, CH-31, CH-44 and CH-45, and a 33.5 tonne mini-bulk sample was collected from surface at CH-28. Six of the kimberlites with economic potential are located within an area with an eight kilometre radius, “the Southern Focus Area”, whereas one, CH-28, is located 45 kilometres north of the Southern Focus Area. New microdiamond results from CH-7 and CH-28 confirm previously reported coarse diamond size distributions. Microdiamond results from the CH-17, CH-51 and CH-55 kimberlites all yielded commercial-size diamonds. Diamond results from ten kimberlites are expected in the coming months. All diamond analyses are being performed at the Saskatchewan Research Council Laboratories (“the SRC”) in Saskatoon.

Mr. Eric Friedland, CEO, said “The 2012 bulk sampling program is an important step along the development path at Chidliak and it will allow Peregrine to continue to unlock the value at this exciting diamond project. Our goal is to deliver the first diamond mine on Baffin Island. We will work to achieve this goal by rapidly advancing the known kimberlites with economic potential as well as continuing to explore for additional diamondiferous pipes. Unresolved indicator mineral trains and the presence of kimberlite float at multiple localities not currently linked to sources give us confidence that more kimberlites will be discovered next season.”

2011 WORK CONDUCTED ON KIMBERLITES WITH ECONOMIC POTENTIAL
Extensive core drilling was completed this year on six of the seven potentially economic kimberlites currently identified at Chidliak, with substantial core drilling of the CH-1 kimberlite scheduled for 2012. CH-6 and CH-7 are scheduled for bulk sampling in 2012 and forthcoming diamond results from CH-31, CH-44 and CH-45 will allow prioritization of these bodies for bulk sampling next year.

CH-6
A total of 1,776 metres was drilled into CH-6 in four vertical and seven angle core holes. The drilling has outlined an estimated surface area for CH-6 of 0.9 hectares. The drill core will be logged in detail and select intervals will be tested for diamonds to refine the geologic model and diamond distribution in the body. As reported on December 6, 2010, a 14.41 tonne sample of drill core collected from CH-6 in 2009 and 2010 returned an average diamond grade of 2.84 carats per tonne (“cpt”). If confirmed by bulk sampling, this would be one of the highest diamond grades for any kimberlite in the world.

CH-7
A total of 1,186 metres was drilled into CH-7 in six angle and one vertical core hole. CH-7 is currently estimated at one hectare in size and, like CH-6, the drill core will be logged in detail and s