Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

April 28, 2010 08:24 ET

Peregrine Announces $3.5 Million 2010 Diamond Exploration Programme at Nanuq Project, Nunavut, Canada

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 28, 2010) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to announce that it is proceeding with a $3.5 million 2010 diamond exploration programme on its wholly-owned 315,000 hectare Nanuq project ("Nanuq" or "the Project"), located approximately 300 km north of Rankin Inlet in Nunavut, Canada. The programme will include approximately 2,000 metres of core drilling on high priority kimberlite targets, ground geophysics, prospecting and kimberlite indicator mineral ("KIM") sampling. The first three targets drilled by the Company in 2007 at Nanuq resulted in the discovery of three significantly diamond-bearing kimberlites, with two of those estimated at five and seven hectares in size. The results from ground geophysics and KIM sampling programs conducted in 2008 and 2009 have led to the identification of a number of high priority kimberlite-type anomalies, which will be further evaluated by drilling this summer.

Mr. Brooke Clements, Peregrine's President, stated, "We are very pleased to be drilling again at Nanuq. The Project has great exploration potential and our three diamondiferous kimberlite discoveries there in 2007 give us optimism that large kimberlites with economic potential can be discovered this year. We are very fortunate to have the diamond exploration "one-two punch" of our Chidliak and Nanuq projects, two of the most promising diamond districts discovered worldwide since 2007."

2010 PROGRAMME

The 2010 exploration programme is scheduled to commence in mid-May with ground geophysics. Ground magnetic and electromagnetic surveys will be conducted over priority geophysical anomalies that have been selected from previously completed airborne surveys. Kimberlite-type geophysical anomalies that have been prioritized based on their geophysical signatures and association with KIMs will be targeted for drilling. Drilling is scheduled to commence in early July on up to eight targets. New kimberlite discoveries will be tested for diamonds by caustic dissolution. In addition, up to 400 KIM samples will be collected as a follow-up to anomalies identified from previous exploration work.

A map showing the location of the known kimberlites and 2009 sample locations, images of four of the geophysical anomalies that will be evaluated by ground geophysics and/or drilling, and some photos of previous field work can be viewed at http://www.pdiam.com/i/pdf/nanuq826.pdf.

PROJECT HISTORY

Exploration commenced at Nanuq in 2003. Between 2003 and 2007, 1,728 KIM samples were collected, 32,183 line kilometres of airborne geophysical surveys were flown and 591 line kilometres of ground magnetic surveys were completed. In 2007, three high priority magnetic low anomalies were drilled by the Company, resulting in the discovery of three diamond-bearing kimberlites, Tudlik (Sandpiper), Naturalik (Eagle) and Kayuu (Hawk), with estimated surface areas of one, seven and five hectares, respectively. The kimberlites at Nanuq are unique in the Western Churchill Province of the eastern Arctic in that they represent the first reported occurrence of "Lac de Gras-type" crater-facies volcaniclastic and resedimented volcaniclastic kimberlites in the region. They are also unique with respect to their late Cretaceous ages (70-80 million years) and are the youngest kimberlites known in the area. 

As reported on November 22 and December 4, 2007, caustic fusion analyses proved that all three kimberlites were significantly diamondiferous, with samples from Tudlik and the Kimb B phase of Kayuu returning over one diamond per kilogram, and Naturalik and Kayuu returning commercial-size (+0.85 mm) diamonds. The diamond counts from the first three kimberlites discovered on the Project are an initial indication that Nanuq has the potential to host kimberlites that have characteristics consistent with economic diamond potential in arctic settings. The 2007 diamond results for Tudlik, Naturalik and Kayuu are presented in the table below.

2007 MICRODIAMOND RESULTS FROM THREE NANUQ KIMBERLITES

Kimber-
lite Sample
  Sample Wt
(kg)
Esti-
mated Surf-
ace
Area
(ha)
Number of Diamonds per Sieve Size (mm)


Total Diam-
onds


Diam-
onds
 per
kg



+0.075 -0.106



+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
Tudlik 89 1 37 17 29 10 12 5 2 0 0 112 1.26
Naturalik 713 7 108 82 57 41 17 6 1 2 0 314 0.44
                           
Kayuu –
Kimb B
177 N/A 60 50 35 17 10 4 0 2 0 178 1.00
Kayuu –
Other
614 N/A 119 100 82 57 28 20 2 0 1 409 0.67
Kayuu  -
Total
791 5 179 150 117 74 38 24 2 2 1 587 0.77

The microdiamond analyses were completed by the Saskatchewan Research Council Geoanalytical Laboratories (SRC), which is accredited to the ISO/IEC 17025 standard for microdiamond recovery via caustic fusion.

In 2008, 931 line kilometres of ground geophysical surveys were completed. In 2009, 1,273 KIM samples were collected under a sampling campaign that had two objectives: initial evaluation of portions of Nanuq that had not previously been evaluated by KIM sampling and follow-up sampling related to previously identified KIM and geophysical anomalies. 482 of the 1,273 samples contained kimberlitic indicator minerals including at least one p-type garnet, e-type garnet, chrome diopside or ilmenite grain, with 100 of the samples returning over five of these grains. Totals of 1,673 p-type garnets and 287 e-type garnet grains were recovered, with one sample returning 50 p-type garnets, ten e-type garnets, four chrome diopside and one ilmenite grain. Microprobe analyses of these indicator minerals are pending.

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 exploration programmes carried out by the Company at Nanuq. Mr. Holmes has reviewed this news 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, 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.

Contact Information

  • Peregrine Diamonds Ltd.
    Eric Friedland
    CEO
    604-408-8880
    or
    Peregrine Diamonds Ltd.
    Brooke Clements
    President
    604-408-8880
    or
    Peregrine Diamonds Ltd.
    Mike Westerlund
    Vice President of Investor Relations
    604-408-8880
    604-408-8881 (FAX)
    investorrelations@pdiam.com
    www.pdiam.com