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Peregrine Confirms Coarse Diamond Size Distribution at the CH-1 Kimberlite, Chidliak
Published : March 03, 2011

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VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 3, 2011) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (News - Market indicators) is pleased to report new microdiamond results confirming a coarse diamond size distribution in previously untested portions of the CH-1 kimberlite located on the 8,580 square kilometre Chidliak project ("Chidliak" or "the Project") on Baffin Island, Nunavut, Canada. CH-1 is one of seven kimberlites at the Project that has characteristics consistent with economic potential in Arctic settings. In addition, all remaining microdiamond results from kimberlites discovered in 2010 have been received, and the CH-22, CH-40 and CH-42 kimberlites were found to be diamondiferous.

The three samples collected from CH-1 by reverse circulation ("RC") drilling were processed at the Saskatchewan Research Council Geoanalytical Laboratories ("the SRC"). Samples from drill holes RC-01 and RC-03 are from two previously untested magnetic high anomalies that are thought to represent separate lobes of CH-1. RC-02 was drilled to test the area underneath the outcrop from which a 49.6 tonne mini-bulk sample was collected in 2009. The 312.6 kilogram RC-01 sample yielded 1,690 diamonds larger than the 0.106 mm sieve size, including five diamonds larger than the 0.850 mm sieve size which weigh 0.206 carats. The 361.2 kilogram RC-02 sample returned 1,062 diamonds larger than the 0.106 mm sieve size, including eight diamonds larger than the 0.850 mm sieve size which weigh 0.338 carats. The 223.3 kilogram RC-03 sample returned 339 diamonds larger than the 0.106 mm sieve size, including five diamonds larger than the 0.850 mm sieve size. 

The Company is encouraged that CH-1, the first kimberlite discovered at Chidliak in 2008, has a coarse size diamond distribution in multiple samples and a population of clear and colourless diamonds. The likely next work programme for CH-1 will consist of detailed core drilling to better define tonnage potential, geology and diamond content of the different kimberlite phases. This programme would be conducted sometime after 2011 and would likely be followed by the collection of mini-bulk or bulk samples to obtain larger diamond parcels for valuation.

The following table summarizes caustic fusion diamond results from the CH-1 kimberlite. 

SUMMARY OF CAUSTIC FUSION RESULTS FOR SAMPLES FROM THE CH-1 KIMBERLITES
Sample Sample Weight (kg) Numbers of Diamonds According to Sieve Size Fraction (mm) Total Diamonds Carats
(+0.850
mm size)
+0.106
-0.150
+0.150
-0.212
+0.212
-0.300
+0.300
-0.425
+0.425
-0.600
+0.600
-0.850
+0.850
-1.180
+1.180
-1.700
+1.700
-2.360
RC-01 312.6 839 490 235 79 30 13 0 3 2 1,690 0.206
RC-02 361.2 541 238 147 78 38 12 2 4 2 1,062 0.338
RC-03 223.3 137 90 59 24 15 9 5 0 0 339 0.053

Of the 18 diamonds larger than 0.850 mm in the three samples, six were characterized by the SRC as being white/colourless, ten as off-white, one as yellow and one as brown.

CH-1 is interpreted as being a complex body that consists of three or more kimberlite lobes that together define a geophysical anomaly with an estimated surface expression of two to three hectares. Each kimberlite lobe can consist of multiple kimberlite phases, with each phase possibly having different geologic characteristics and diamond contents. Sampling in 2008 and 2009 identified four distinct phases at CH-1. Diamond results from these four phases were summarised in a news release dated October 21, 2009. As announced on January 28, 2010, a 49.6 tonne mini-bulk surface sample from the CH-1A phase returned 20.26 carats of diamonds larger than 0.850 mm, for a diamond content of 0.41 carats per tonne for that particular phase of the kimberlite. Of the 80 diamonds larger than the 0.850 mm sieve size recovered from the mini-bulk sample, 55 percent were classified as white/colourless. The CH-1A phase is predicted to have the lowest diamond content based on previous microdiamond analysis. 

Images from CH-1 are available on Peregrine's web-site at www.pdiam.com/i/pdf/Chidliak727.pdf.

CAUSTIC FUSION RESULTS FOR CH-12, CH-22, CH-40 AND CH-42

The discovery of the CH-12 kimberlite by prospecting was reported on September 14, 2009 and encouraging microdiamond results from a sample of surface material were reported on November 12, 2009. CH-12 has an estimated surface expression of 0.5 hectares and is interpreted to consist of at least two phases of kimberlite. One phase is grain-supported and is interpreted to be volcaniclastic ("VK") in origin, containing 40 to 50 percent coarse olivine (up to 15 mm), abundant kimberlite indicator minerals and mantle xenoliths. Paleozoic limestone fragments were also observed. The other phase of kimberlite is interpreted as being magmatic in origin ("MK") with approximately five to ten percent olivine crystals up to 10 mm in size, and rare kimberlite indicator minerals. In 2010, two core holes were drilled into the kimberlite. Diamond results from samples collected from the two kimberlite phases are reported in the table below.

SUMMARY OF CAUSTIC FUSION RESULTS FOR SAMPLES FROM THE CH-12 KIMBERLITE

Kimberlite Sample Weight (kg) Numbers of Diamonds According to Sieve Size Fraction (mm) Total Diamonds Carats
(+0.850
mm size)
+0.106
-0.150
+0.150
-0.212
+0.212
-0.300
+0.300
-0.425
+0.425
-0.600
+0.600
-0.850
+0.850
-1.180
+1.180
-1.700
CH-12 VK 145.6 41 23 15 2 2 2 0 1 86 .028
CH-12 MK 157.6 4 4 1 0 0 0 1 0 10 .009

The CH-22, CH-40 and CH-42 kimberlites were also found to be diamondiferous. CH-22 was discovered by core drilling, and CH-40 and CH-42 by RC drilling. Samples weighing 214.9 kilograms, 168.1 kilograms and 143.1 kilograms were collected from CH-22, CH-40 and CH-42 respectively and yielded between one and three diamonds ranging in size from 0.106 to 0.425 mm in size.

All diamond results from the kimberlites analyzed under the 2010 Chidliak exploration programme have now been disclosed. To date, 50 kimberlites have been discovered at Chidliak, and 34 of the 35 kimberlites that were tested for diamonds are diamondiferous. Fourteen of the kimberlites discovered in 2010 have been assigned a lower priority based on their interpreted size potential and visual characteristics and diamond testing of these bodies has been deferred. At CH-17, the first kimberlite discovered in 2010, only three metres of kimberlite core was recovered in the 2010 drill programme and therefore it will be drilled this month in an effort to obtain sufficient kimberlite material for diamond testing.

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 property. 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.

For more information, please contact

Peregrine Diamonds Ltd.
Mr. Eric Friedland
CEO
604-408-8880
or
Peregrine Diamonds Ltd.
Mr. Mike Westerlund
Vice President, Investor Relations
604-408-8880
604-408-8881 (FAX)
investorrelations@pdiam.com
www.pdiam.com
Données et statistiques pour les pays mentionnés : Canada | Tous
Cours de l'or et de l'argent pour les pays mentionnés : Canada | Tous

Peregrine Diamonds Ltd.

EXPLORATEUR
CODE : PGD.TO
ISIN : CA7139161045
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Peregrine Diamonds est une société développant des projet miniers de diamants basée au Canada.

Peregrine Diamonds détient divers projets d'exploration au Canada et en Argentine.

Ses principaux projets en exploration sont LAC DE GRAS EAST, CROSSWELL RIVER PROPERTY, MACKAY LAKE WEST, WEIR RIVER PROPERTY, NANUQ, LAC DE GRAS WEST, PELLATT LAKE PROPERTY, MIRAGE BAY - BAFFIN ISLAND, FOXE BASIN BAFFIN ISLAND, WO PROPERTY & DO-27 KIMBERLITE, NANUQ NORTH, CHIDIAK-BAFFIN ISLAND, QILAQ et MACKAY LAKE au Canada et ALTAR PORPHYRY en Argentine.

Peregrine Diamonds est cotée au Canada. Sa capitalisation boursière aujourd'hui est 78,0 millions CA$ (61,3 millions US$, 51,0 millions €).

La valeur de son action a atteint son plus haut niveau récent le 02 octobre 2009 à 4,65 CA$, et son plus bas niveau récent le 12 février 2016 à 0,09 CA$.

Peregrine Diamonds possède 339 329 984 actions en circulation.

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