Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

August 06, 2009 08:30 ET

Peregrine Announces Four Additional Kimberlite Discoveries and Provides Exploration Update at Chidliak, Baffin Island, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 6, 2009) - Peregrine Diamonds Ltd. (TSX:PGD) ("Peregrine") is pleased to report the discovery of four additional kimberlites on the 9,800 square kilometre Chidliak property ("Chidliak" or "the Property"), Baffin Island, Nunavut, Canada. The CH-6 kimberlite was discovered by drilling whereas the other three kimberlites, CH-7, CH-8 and CH-9, were discovered at surface while prospecting geophysical anomalies. Since commencement of the Chidliak summer exploration programme on July 3, six new kimberlites have been discovered, two by drilling and four by prospecting and mapping. Kimberlite samples collected from these discoveries will be processed this fall for microdiamonds to assess their diamond potential.

In addition to the four new kimberlite discoveries, two additional drill holes have been completed on the CH-1 kimberlite, over 850 indicator mineral samples have been collected, 58 geophysical anomalies have been evaluated on the ground by prospecting and geochemical sampling, kimberlite float was discovered by prospecting at four locations and the collection of a 50 tonne mini-bulk sample of kimberlite from a surface exposure at CH-1 has commenced. Kimberlite has been discovered at two of six geophysical anomalies drilled this year, CH-4 and CH-6, while the other four anomalies were explained by sulphides observed in the drill core. Portions of the sulphide-bearing drill core will be evaluated for base and precious metals potential.

The following table describes drilling done to date at the CH-6 and CH-1 kimberlites.



SUMMARY OF 2009 DRILLING AT THE CH-6 AND CH-1 KIMBERLITES

--------------------------------------------------------------------------
Kimberlite
Intercepts (m)
Inclination ------------------- End of
Kimberlite, from Overburden Inter- Hole
Drill Hole # Azimuth Horizontal (m) From To cept (m)
--------------------------------------------------------------------------
CH-6, #1 057 -45 21 21 85 64 180
degrees degrees ----------------------------
117 118 1 180
--------------------------------------------------------------------------
CH-6, #2 -90 16 30 250 220 250
degrees
--------------------------------------------------------------------------
CH-6, #3 022 -45 16 16 152 136 180
degrees degrees
--------------------------------------------------------------------------
--------------------------------------------------------------------------
CH-1, #1(i) 038 -45 5 56 111 55 245
degrees degrees ----------------------------
129 137 8 245
----------------------------
152 208 56 245
--------------------------------------------------------------------------
CH-1, #2 120 -45 16 16 66 50 177
degrees degrees ----------------------------
78 103 25 177
--------------------------------------------------------------------------
CH-1, #3 -90 5 - - - 50
degrees
--------------------------------------------------------------------------
(i) Drill intersections first reported on July 16, 2009.
Note: All intercepts below the overburden that are not kimberlite are
gneiss.


CH-6 KIMBERLITE

Situated 12 kilometres northwest of the CH-1 kimberlite, the CH-6 kimberlite was discovered by drilling three holes from the same setup at the southwestern edge of a geophysical anomaly with an estimated surface expression of one to two hectares as determined by ground geophysics. Drill holes one and three, drilled at azimuths of 057 and 022 degrees respectively, and at an inclination of -45 degrees from horizontal, intersected kimberlite directly underneath overburden with kimberlite intersections of 64 and 136 metres respectively. A vertical hole intersected 220 metres of kimberlite from 30-250 metres and was terminated in kimberlite. Interpretation resulting from the logging of the drill core suggests that three main kimberlite lithologies are present at CH-6: an upper volcaniclastic unit that extends to a depth of approximately 70 metres, a primary pyroclastic unit that is present below a vertical depth of approximately 70 metres to at least 250 metres, and a magmatic unit intersected in one drill hole that may represent a peripheral phase. All three lithologies have abundant mantle xenoliths (eclogite, garnet lherzolite and garnet harzburgite) up to 20 cm in size and abundant mantle-derived garnets.

CH-6 is represented by a geophysical anomaly that is a magnetic low whereas the other eight kimberlites currently known at Chidliak are represented by magnetic high anomalies. Evaluation of all airborne and ground geophysical data is ongoing with particular emphasis on defining additional targets represented by magnetic lows.

CH-7, CH-8 and CH-9 KIMBERLITES

The CH-7 kimberlite was discovered while prospecting a geophysical anomaly with an estimated surface expression of 1.4 hectares as defined by airborne geophysics. CH-7 is located approximately two kilometres southwest of CH-1. In the centre of the anomaly, the field crew discovered a kimberlite outcrop measuring approximately 65 metres by 10 metres. The kimberlite is described as being magmatic with abundant olivine macrocrysts, mantle xenoliths and indicator minerals including pyrope garnet, ilmenite and chrome diopside.

The CH-8 kimberlite is located approximately 1.5 kilometres west of the CH-7 kimberlite and was discovered when kimberlite cobbles and boulders were discovered at the southern edge of a geophysical anomaly with an estimated surface expression of one hectare as defined by airborne geophysics. The surface material is described as weathered magmatic kimberlite.

The CH-9 kimberlite is located seven kilometres west of CH-1. While conducting a ground geophysical survey, the field crew discovered magmatic kimberlite over an area interpreted as outcrop/subcrop measuring approximately 5 metres by 25 metres. The kimberlite exposure lies just west of a circular magnetic anomaly with an estimated surface expression of one hectare as defined by ground geophysics.

CH-1 KIMBERLITE

As reported on July 16, 2009, the first drill hole into CH-1 was collared southwest of the geophysical anomaly and kimberlite intervals of 55, 12 and 56 metres were intersected. Two additional holes collared at the northwestern edge of CH-1 and drilled at an azimuth of 120 degrees and an inclination of -45 degrees from horizontal intersected two kimberlite sections, a 50 meter zone from 16 to 66 metres and a 25 meter zone from 78 to 103 metres. A vertical hole was then drilled from the same setup in an effort to constrain the northwestern contact and no kimberlite was intersected in this hole. In addition to magmatic kimberlite with abundant medium to coarse-grained olivine, coarse-grained garnet and abundant mantle xenoliths, pyroclastic kimberlite with limestone xenoliths was observed in the drill core from hole number two.

Additional drilling is required to more accurately assess the geology and geometry of CH-1. Observations to date suggest that rather than being one kimberlite pipe, CH-1 may consist of several pipes that together define the geophysical anomaly. The collection of a 50 tonne mini-bulk sample from the outcrop exposure at CH-1 has commenced. As announced on November 18, 2008, a 2.28 tonne sample collected from this outcrop and associated surface material returned a diamond content of 1.56 carats per tonne for diamonds larger than 0.85 mm including a 2.01 carat clear, colourless gem diamond.

OTHER DISCOVERIES OF KIMBERLITE AT SURFACE

In addition to the nine kimberlites discovered at Chidliak to date, kimberlite pebbles, boulders and cobbles were discovered at four localities by prospecting teams. Field crews are working to establish a definitive link between these four kimberlite float occurrences and proximal geophysical anomalies. The most notable of these occurrences is located 2.8 kilometres north of the CH-3 kimberlite and ten kilometres east-southeast of the CH-1 kimberlite. At this location, abundant kimberlite pebbles, cobbles and boulders were discovered over an area measuring approximately 300 by 500 metres. Both magmatic and volcaniclastic kimberlite was observed.

FUTURE WORK

Peregrine is planning to process a minimum of 200 kilograms of drill core and surface material for microdiamonds by caustic fusion from each kimberlite discovered this summer. Processing will occur at the Saskatchewan Research Council Geoanalytical Laboratories. Receipt of the first microdiamond results are expected this quarter, with the balance to follow on a regular basis. The 50 tonne mini-bulk sample from CH-1 is scheduled to be processed early in the fourth quarter.

The drilling of high priority kimberlite-type anomalies, the collection of indicator mineral samples and ground geophysical surveying over select anomalies is continuing at Chidliak.

Maps and photographs illustrating work conducted this summer at Chidliak are available on Peregrine's web-site at http://www.pdiam.com/i/pdf/chidliak7.pdf. A slide show with photographs from the 2009 programme is available at http://www.pdiam.com/i/flash/chidliak.html.

Peregrine is the operator of the approved 2009 Chidliak exploration programme which is being fully funded by BHP Billiton. As announced on November 24, 2008, BHP Billiton has elected to exercise its earn-in rights for Chidliak and, under the terms of the earn-in agreement, must incur a total of $22.3 million dollars in exploration expenditures in order to earn a 51% interest in the Property.

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 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 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.

Contact Information

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