VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 20, 2011) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (News - Market indicators) is pleased to report the discovery of the CH-51 kimberlite by core drilling on the Chidliak project ("Chidliak") on Baffin Island, Nunavut, Canada. CH-51 is the first target drilled in 2011 and the fifty-first kimberlite discovered at Chidliak since 2008.
CH-51 is located approximately 200 metres south of the CH-17 kimberlite, ten kilometres south of the CH-28 kimberlite and 40 kilometres north of the Southern Focus Area. Currently, CH-28 and six kimberlites within the Southern Focus Area have characteristics consistent with economic potential in Arctic settings.
CH-51 was discovered by drilling one vertical core hole from lake ice into a high-priority magnetic high anomaly. Kimberlite was intersected over an interval of 101 metres from a depth of 33 to 134 metres underneath 25 metres of water and eight metres of overburden. Mantle xenoliths, abundant kimberlite indicator minerals and Paleozoic carbonate rock fragments were observed in the drill core. From 134 to 171 metres, gneiss with minor kimberlite stringers was intersected and from 171 to 175 metres a macrocrystic kimberlite dyke was encountered. The hole was terminated in gneiss at a depth of 188 metres. Based on interpretation of the ground geophysical data, CH-51 has an estimated surface expression of one hectare.
Next Steps
The drilling of a vertical core hole into the CH-17 kimberlite is about to commence. CH-17 was discovered in 2010 by core drilling, but sufficient material for Diamond testing was not recovered. Upon completion of this hole, the rig is scheduled to drill the CH-28 kimberlite and anomaly 440. Discovered by prospecting, CH-28 has an estimated surface expression of two hectares and as announced on September 23, 2010, a 239 kilogram sample collected at surface yielded 196 carats of commercial-size (+0.85 mm) diamonds. Anomaly 440 is a magnetic high located approximately five kilometres northeast of CH-28 with an estimated surface expression of one hectare.
A second core rig is scheduled to commence drilling at Chidliak before the end of this month. After testing lake-based magnetic high anomaly 153, which has an estimated surface expression of two hectares and is located 20 kilometres southeast of the Southern Focus Area, the rig will be utilized to drill the CH-33 kimberlite and complete a mini-bulk sampling program on the CH-31 kimberlite. Based on interpretation of ground geophysical data, the diamondiferous CH-33 kimberlite has an estimated surface expression of greater than seven hectares. Diamond results for CH-33 were reported on January 13, 2011. As reported on October 29, 2010, CH-31 has an estimated surface expression greater than five hectares and an 840 kilogram sample yielded 1.39 carats of commercial-size diamonds including a 1.15 carat stone. Up to seven core holes will be drilled at CH-31 in an effort to recover approximately five tonnes of kimberlite.
The reverse circulation ("RC") drill rig that was stored at Chidliak over the winter is scheduled to commence drilling priority kimberlite targets in May. The first target for the RC rig is expected to be anomaly 551, located 2.5 kilometres northeast of the CH-6 kimberlite. Anomaly 551 is a subtle magnetic low with a corresponding electromagnetic signature with an estimated surface expression of seven hectares.
A map showing CH-51 and photographs of drill core, as well as images of CH-28 and anomalies 440,153 and 551, are available at www.pdiam.com/i/pdf/chidliak747.pdf.
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 programs carried out by the Company at Chidliak. 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 program, 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 programs, 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.
