Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

October 05, 2009 08:28 ET

Peregrine Diamonds Ltd.: 0.64 Carat Diamond Recovered From CH-7 Kimberlite Surface Sample at Chidliak, Baffin Island, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 5, 2009) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is very pleased to report the discovery of a 0.64 carat diamond and a coarse diamond size distribution in a surface sample collected from the CH-7 kimberlite on the 9,800 square kilometre Chidliak project ("Chidliak"), Baffin Island, Nunavut, Canada. A 220.9 kilogram sample collected from CH-7 yielded 664 diamonds larger than the 0.075 mm sieve size, including 11 diamonds larger than the 0.600 mm sieve size. The CH-4 and CH-8 kimberlites are also diamondiferous with 201.6 and 187.9 kilogram samples of drill core and surface material respectively yielding 15 and 17 diamonds larger than the 0.075 mm sieve size including one diamond larger than the 0.600 mm sieve size from CH-4.

The following table summarizes caustic fusion diamond results for samples collected from the CH-7, CH-4 and CH-8 kimberlites. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ("the SRC").



--------------------------------------------------------
SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR SAMPLES
FROM THE CH-7, CH-4 AND CH-8 KIMBERLITES
--------------------------------------------------------
Numbers of Diamonds
According to Sieve Size Fraction (mm)
Sample -----------------------------------------
Kimbe- Weight +0.075 +0.106 +0.150 +0.212 +0.300 +0.425
rlite (kg) -0.106 -0.150 -0.212 -0.300 -0.425 -0.600
--------------------------------------------------------
CH-7 220.9 198 201 115 78 48 13
--------------------------------------------------------
CH-4 201.6 4 7 0 2 1 0
--------------------------------------------------------
CH-8 187.9 4 6 2 4 0 1
--------------------------------------------------------

---------------------------------------------------------------------------
Numbers of Diamonds Carats
According to Sieve Size Fraction (mm) Per
Sample ----------------------------------------- Total Carats Tonne
Kimbe- Weight +0.600 +0.850 +1.180 +1.700 +2.360 +3.350 Diam- +0.85 +0.85
rlite (kg) -0.850 -1.180 -1.700 -2.360 -3.350 -4.750 onds mm mm
---------------------------------------------------------------------------
CH-7 220.9 9 0 1 0 0 1 664 0.70 3.2
(i)
---------------------------------------------------------------------------
CH-4 201.6 1 0 0 0 0 0 15 - -
---------------------------------------------------------------------------
CH-8 187.9 0 0 0 0 0 0 17 - -
---------------------------------------------------------------------------
(i) The diamond content of the sample as determined by caustic dissolution
may not be representative of the overall diamond content of the CH-7
kimberlite due to a number of factors including the limited area of the
kimberlite from which the surface sample was collected and the
relatively small size of the sample.


Brooke Clements, President of Peregrine stated, "The coarse diamond size distribution indicated at CH-7 is another example of the excellent diamond potential at Chidliak. We have now received diamond results for eight of the 16 kimberlites discovered to date at Chidliak, and all eight are diamondiferous with three of these, CH-1, CH-6 and CH-7 having diamond contents and coarse diamond size distributions that are consistent with economic potential. Planning is underway for the 2010 exploration programme, which is expected to commence next April and will include multiple drill rigs, an expanded high resolution airborne geophysical survey and more prospecting for kimberlites exposed at surface."

CH-7 DIAMONDS AND CHARACTERISTICS OF THE CH-7, CH-4 AND CH-8 KIMBERLITES

Four of the eleven diamonds larger than the 0.600 mm sieve size from the 220.9 kilogram CH-7 sample were classified by the SRC as having a white colour and seven were described as off-white. The two diamonds from CH-7 larger than the 1.18 mm sieve size were described as a 0.64 carat off-white, transluscent octahedroid and a 0.06 carat off-white, transluscent distorted crystal.

A photograph of the 0.64 carat diamond and other images from CH-7 are available on Peregrine's web-site at http://www.pdiam.com/i/pdf/chidliak274.pdf.

The CH-7 kimberlite was discovered while prospecting a geophysical anomaly with an estimated surface expression of one hectare as reported on August 6, 2009. The kimberlite sample was collected from subcrop and outcrop over an area of approximately 5 m by 30 m and consisted of massive magmatic kimberlite with 30 to 50 percent olivine macrocrysts up to ten millimetres in size, abundant kimberlite indicator minerals and common mantle xenoliths. In addition, while completing the ground geophysical survey over CH-7, kimberlite float was discovered at two localities associated with geophysical anomalies 400 metres northwest and 400 metres north of the kimberlite.

Discovery of the CH-4 and CH-8 kimberlites was reported on July 16 and August 6, 2009 respectively. The CH-4 kimberlite was discovered by drilling two angle holes across a geophysical anomaly with an estimated surface expression of two hectares as determined by ground geophysics and the 201.6 kilogram sample was derived from both holes. The sample consisted of moderately macrocrystic magmatic kimberlite with 25 to 30 percent olivine macrocrysts up to seven millimetres in size. The 187.9 kilogram sample of CH-8 was collected from cobbles and boulders at the southern edge of an airborne geophysical anomaly with an estimated surface expression of one hectare. The CH-8 sample consisted of magmatic kimberlite with 10 to 15 percent olivine macrocrysts up to ten millimetres in size.

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.

Peregrine is the operator of the 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 Chidliak.

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