Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

August 20, 2010 08:20 ET

Peregrine Completes Summer Field Programmes at Nanuq and Cumberland, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2010) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) today reports the completion of the 2010 field programme on its wholly-owned 315,000 hectare Nanuq project ("Nanuq" or "the Project"), located approximately 300 kilometres north of Rankin Inlet in Nunavut, Canada. During the programme, 495 kimberlite indicator mineral ("KIM") samples were collected and three kimberlite-type geophysical anomalies were drill-tested. In addition, the Company has completed the 2010 field programme on its wholly-owned 1.5 million hectare Cumberland project ("Cumberland"), located northeast of Pangnirtung on Baffin Island, Nunavut. During the programme, 337 KIM samples were collected.

NANUQ

2010 Exploration Programme

The 2010 exploration programme commenced in mid-May with ground geophysics. A total of 1,550 line kilometres of ground magnetic and electromagnetic surveys were conducted over priority geophysical anomalies that were selected from previously completed airborne surveys. Kimberlite-type geophysical anomalies were then prioritized for drilling. Three holes were drilled into three targets, for a total of 492 metres, without intersecting kimberlite. In addition, 495 KIM samples were collected as a follow-up to KIM anomalies identified from previous exploration work and to further assess additional geophysical anomalies.

Upon receipt of results from the KIM sampling programme, geophysical anomalies will be assessed and prioritized for drilling in 2011. The core rig used for this year's programme is being stored at the Nanuq camp and will be utilized in 2011.

A map showing the location of the known kimberlites and some photos of previous field work can be viewed at www.pdiam.com/i/pdf/nanuq424.pdf.

Project History

Exploration commenced at Nanuq in 2003 and work from 2003 to 2007 consisted of KIM sampling as well as airborne and ground geophysics.  In 2007, three high-priority magnetic low anomalies were drilled by the Company resulting in the discovery of three diamond-bearing kimberlites, Tudlik, Naturalik and Kayuu, with estimated surface areas of one, seven and five hectares, respectively.  The best diamond content recorded was from Tudlik, where an 89 kilogram sample yielded 112 diamonds larger than the 0.075 mm sieve size including seven stones larger than the 0.425 mm sieve size.  The microdiamond analysis was completed by the Saskatchewan Research Council Geoanalytical Laboratories.  In 2008, 930 line-kilometres of ground geophysical surveys were completed and 1,273 KIM samples were collected in 2009. 

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.  With late Cretaceous ages (70-80 million years), the Nanuq bodies are the youngest kimberlites known in the area.  The confirmed presence of large kimberlites with coarse diamond size distributions provides Peregrine with encouragement that large, potentially economic kimberlites could be present at Nanuq. 

CUMBERLAND

The centre of Cumberland is located east of the community of Pangnirtung and approximately 200 kilometres north of Peregrine's Chidliak project, where the company announced the discovery of 32 kimberlites as of August 4, 2010 and where the drilling of priority targets is continuing.  The majority of the Cumberland project area is thought to be underlain by ancient Archean bedrock.  Most of the world's major diamond deposits are hosted in similar geologic environments.

During July and August, 2010, Peregrine conducted a reconnaissance sediment sampling programme to evaluate Cumberland's diamond and metals potential.  A total of 337 KIM samples was collected during the programme.  The results from these samples will determine the nature and scope of future exploration programmes.

A map showing Cumberland's location and some photos of 2010 field work can be viewed at www.pdiam.com/i/pdf/cumberland651.pdf.

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