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Feb 19, 2008
Peregrine Discovers Three Separate Areas with High Concentrations of
Kimberlitic Indicator Minerals on Chidliak, Baffin Island
View News Release in PDF Format
Mr. Brooke Clements, President and Mr. Eric Friedland, Chief Executive
Officer of Peregrine Diamonds Ltd. ("Peregrine" or "the
Company") are pleased to report that the Company has discovered three
separate areas with high concentrations of kimberlitic indicator minerals
("KIMs") on the Chidliak Property ("Chidliak"), Baffin
Island, Canada. Chidliak is situated approximately 150 kilometres northeast
of Iqaluit, capital of Nunavut. The high concentrations of KIMs and their
abrasion characteristics suggest the presence of kimberlites. Many of these
indicator minerals have geochemical compositions that imply their kimberlite
source contains diamonds.
On February 1st, 2008, the Nunavut Mining Recorder approved Peregrine's
application for 25 new prospecting permits that were peripheral to the
existing Chidliak property, increasing its size from approximately 635,000 to
980,000 hectares.
A map showing the Chidliak property and Peregrine's complete 2.7 million
hectare land position on Baffin Island is available at http://www.pdiam.com/i/maps/NA/BaffinProperties.jpg
Anomaly Areas
Peregrine collected a total of 970 till samples in 2006 and 2007, of which
286 samples, or 29 percent, contained kimberlitic indicator minerals. The
full suite of KIMs have been recovered from Chidliak, including p-type pyrope
garnet, eclogitic garnet, chrome diopside, picroilmenite, chromite and forsteritic
olivine. Ten percent of the 2,284 p-type pyrope garnets that were analyzed by
electron microprobe are classified as high-chrome, low-calcium G10 garnets.
G10 garnets are commonly associated with diamond mines throughout the world.
An image showing the encouraging garnet mineral chemistry from Chidliak is
available at http://www.pdiam.com/i/pdf/Chidliak_pyrope.pdf.
The three distinct and well-defined KIM anomaly areas on Chidliak are
situated 20 to 30 kilometres apart and are referred to as the Southern
Anomaly, the Northern Anomaly and the Eastern Anomaly.
The largest and most significant anomalous area, the Southern Anomaly, is
approximately 11 by 9 km in size and 37 of the 38 samples collected within
this area were anomalous with KIMs, with most of the samples being highly
anomalous. One sample contained 246 pyrope garnets, 24 eclogitic garnets, 13
chrome diopsides, 89 picroilmenites and 244 olivines. Of these mineral grains,
two pyrope garnets, two eclogitic garnets, ten picroilmenites and six
olivines were over 1.00 mm in size. The 0.25-2.00 mm size fraction from heavy
mineral concentrates is typically recovered from till samples being analyzed
for KIMs. Mineral grains larger than 1.00 mm are not common and are often a
strong indication of a proximal kimberlite source.
The Northern Anomaly is roughly 13 by 2 km in size and all seven samples
collected within this area are anomalous in KIMs. One sample contained 54
pyrope garnets, 11 eclogitic garnets, 35 picroilmenites, 15 chromites, 20
olivines and three chrome diopsides, of which one grain was over 1.00 mm in
size.
The Eastern Anomaly measures approximately 9 by 4 km in size. All 19 samples
collected within this area were anomalous in KIMs and the most significantly
anomalous sample contained 96 pyrope garnets, seven eclogitic garnets, 11
picroilmenites, one chromite and 397 olivines. One of the pyrope garnets,
three of the ilmenites and three of the olivines were larger than 1.00 mm in
size.
All of the samples collected from Chidliak were sent to Overburden Drilling
Management ("ODM") in Nepean, Ontario for KIM and metamorphic or
magmatic massive sulfide indicator mineral analyses. ODM is an
internationally recognized laboratory specializing in identifying kimberlite
indicator minerals and indicator minerals associated with uranium and other
metallic ore deposits.
2008 Work
Peregrine is highly encouraged by the identification of these indicator
mineral anomalies and believe they are a strong indication of the presence of
a new kimberlite district with excellent diamond potential on this part of
Baffin Island. Planning is currently underway for the 2008 exploration field
program with the primary goal being the discovery of diamondiferous
kimberlite in one or more of the three anomalous areas this year.
Peregrine plans to establish an exploration camp on Chidliak this June and a
helicopter-borne magnetic/electromagnetic survey with 75 m line spacing will
commence shortly thereafter. The survey will be flown over the Southern,
Northern and Eastern Anomaly areas first. Survey data will be interpreted in
real time and high priority anomalies will be investigated immediately by
detailed prospecting, till and geochemical sampling and limited drilling if
results warrant and weather permits.
Alliance with BHP Billiton
The Chidliak property is owned 100% by Peregrine, subject to certain back-in
rights held by BHP Billiton. After Peregrine has incurred a minimum of $3
million and up to $10 million of expenditures on the property, BHP Billiton
has a one-time option to elect to acquire a 51% interest in the property by
sole-funding five times the exploration expenditures that have been incurred
($15 million to $50 million). BHP Billiton has the right to earn an
additional seven percent interest by sole-funding the complete costs of a
bankable feasibility study. If this option is exercised, the resulting
ownership interests in any potential mine would be BHP Billiton 58% and
Peregrine 42%.
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 on Baffin Island.
For further information, please contact Brooke Clements, President, Eric
Friedland, CEO, or Peregrine Diamonds Investor Relations, at 604-408-8880 or
at investorrelations@pdiam.com.
Forward-Looking Statements: This document
includes forward-looking statements. Forward-looking statements include, but
are not limited to statements concerning Peregrine's projects and other
statements that are not historical facts. When used in this document, the
words such as "could," "commonly," "confident,"
"plan," "encouraging," "estimate,"
"expect," "anticipated," "intend,"
"imply," "likely," "may,"
"potential," "should," "scheduled," "significant,"
"suggest", and similar expressions are forward-looking statements.
Although Peregrine Diamonds Ltd. believes that its expectations reflected in
these forward-looking statements are reasonable, such statements involve risk
and uncertainties and no assurance can be given that actual results will be
consistent with these forward-looking statements. Important factors that
could cause actual results to differ from these forward-looking statements
are disclosed in the corporation's periodic filings with Canadian regulators.
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