VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 21, 2011) - Peregrine Diamonds Ltd. (News - Market indicator) ("Peregrine" or "the Company") is pleased to report microdiamond results showing a coarse Diamond size distribution from drill core and reverse circulation ("RC") drill cuttings acquired from the north and south lobes of the CH-7 kimberlite on the 8,580 square kilometre Chidliak project ("Chidliak" or "the Project") on Baffin Island, Nunavut, Canada. In the summer of 2010, samples were collected from both lobes of CH-7 in an effort to assess Diamond distribution throughout the pipe and to test the Diamond content at depth in the north lobe below the site where a 47 tonne mini-bulk sample was collected. A sample from the south lobe weighing 569.0 kilograms yielded 1,208 diamonds larger than the 0.106 mm sieve size, including 24 diamonds larger than the 0.850 mm sieve size which weigh a total of 0.386 carats. A 359.5 kilogram sample from the north lobe yielded 681 diamonds larger than the 0.106 mm sieve size, including 17 diamonds larger than the 0.850 mm sieve size which weigh a total of 1.05 carats. The CH-7 pipe is one of seven diamondiferous kimberlites at the Project discovered to date that have economic potential in Arctic settings. Six of these pipes, including CH-7, are located within an area that has an eight kilometre radius, the Southern Focus Area. Additionally, four kimberlites discovered during the 2010 exploration programme, CH-29, 32, 36 and 41, have now been confirmed to be diamondiferous.
Mr. Brooke Clements, President of Peregrine, said "These results from CH-7, together with the carat per tonne Diamond grade from the 47 tonne surface mini-bulk sample last year, demonstrate that this kimberlite warrants the collection of a larger bulk sample to acquire a parcel of diamonds for valuation. Future programmes for CH-7 are currently being planned."
The following table summarizes caustic fusion Diamond results from the CH-7 kimberlite. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ("the SRC").
A total of five samples was collected and processed from CH-7, three from the south lobe and two from the north lobe. The south lobe is currently interpreted to be comprised of three main phases of kimberlite, two of which are volcaniclastic (VK-1 and VK-2) and one that is magmatic (MK-2). Two samples of drill core weighing 184.9 kg and 199.4 kg were collected from the VK-1 and VK-2 units, respectively. A sample of RC drill cuttings from the VK-1 unit in the south lobe weighing 184.7 kg was collected from a depth of four to 26 metres in a vertical drill hole. The MK-2 phase was not sampled, as it is considered to be a minor phase occurring at depth.
Two samples, a 214.5 kg sample of drill core and a 145 kg sample of RC cuttings, were collected from the north lobe, which consists of magmatic kimberlite (MK-1).
For the three samples from the south lobe, nine of the 24 diamonds larger than the 0.850 mm sieve size were classified by the SRC as being white/colourless and 15 were off-white. For the two samples from the north lobe, four of the 17 diamonds larger than the 0.850 mm sieve size were described by the SRC as being white/colourless, 11 were off-white and two were brown.
Images from CH-7 are available on Peregrine's web-site at www.pdiam.com/i/pdf/Chidliak687.pdf.
CAUSTIC FUSION RESULTS FOR CH-29, CH-32, CH-36 and CH-41
Caustic fusion results for the CH-29, 32, 36 and 41 kimberlites show that all four are diamondiferous. The analyses were performed at the SRC, and the results are summarized in the table below.
The discovery of the CH-29 and CH-32 kimberlites was announced on August 4, 2010. At both of these discoveries, two inclined holes were drilled across the kimberlite. CH-29 is associated with a magnetic low anomaly and CH-32 a magnetic high anomaly, both having estimated surface expressions of 0.5 to 1.0 hectare. As reported on August 23, 2010, CH-36 was discovered by prospecting and a 217.2 kg sample of kimberlite was collected from the surface of the body. The geophysical anomaly representing CH-36 is approximately one hectare in size and the majority of the body lies under a lake. As reported on September 16, 2010, CH-41 was discovered when two inclined holes were drilled across a magnetic high anomaly with an estimated surface expression of 0.5 hectares.
Diamond RESULTS UPDATE
To date, Peregrine has discovered 50 kimberlites at Chidliak, and 30 of the 31 kimberlites for which microdiamond results have been reported are diamondiferous. Microdiamond results have now been reported for 15 of the 34 kimberlites discovered in 2010, and results for another four kimberlites are expected in the coming weeks. Microdiamond results from the 2010 drilling of the following kimberlites discovered in 2008 and 2009 will also be reported this quarter: CH-1, CH-9, CH-12 and CH-16.
2011 PROGRAMME UPDATE
The Chidliak Joint Venture is working towards finalizing the 2011 exploration programme and budget. Details of the programme will be released after it is approved by Peregrine and BHP Billiton. Field activities commenced this week with the construction of a third exploration camp that will facilitate access to the northern portions of the Project. Core drilling is scheduled to commence in mid-March on the CH-17 kimberlite, followed by anomaly CHI-165, located 200 metres away.
The SRC is an independent laboratory that is accredited by the Standards Council of Canada to the ISO/IEC Guide 25 standard for Diamond recovery by caustic fusion. The kimberlite samples were collected, sealed in secure containers and shipped to the SRC under strict chain of custody protocols supervised by senior Peregrine personnel.
Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%).
Mr. Peter Holmes, P. Geo., Peregrine's Vice President, Exploration, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the programmes carried out by the Company on the Chidliak project. Mr. Holmes has reviewed this release and approves of its contents.
Forward-Looking Statements: This news release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the proposed exploration programme, funding availability, anticipated exploration results, resource estimates, and future exploration and operating plans) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, uncertainties relating to the availability and cost of funds, timing and content of work programmes, results of exploration activities, interpretation of drilling results and other geological data, world Diamond markets, future Diamond prices, reliability of mineral property titles, changes to regulations affecting the Company's activities, delays in obtaining or failure to obtain required project approvals, any changing budget priorities of BHP Billiton, operational and infrastructure risks, and other risks involved in the Diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to their inherent uncertainty.
