Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

November 12, 2009 08:13 ET

Peregrine Reports 2.08 Carats of +0.85 mm Diamonds From New 170 kg Ch-6 Sample and Promising Coarse Diamond Size Distributions From CH-10 and CH-12 Kimberlites

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2009) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report outstanding new diamond results from the CH-6 kimberlite that support previous results from that kimberlite. In addition, promising coarse diamond size distributions were received from samples of the CH-10 and CH-12 kimberlites. The CH-6, CH-10 and CH-12 kimberlites are situated on the 9,800 square kilometre Chidliak project ("Chidliak"), Baffin Island, Nunavut, Canada. The southwestern corner of Chidliak is located only 60 kilometres from Iqaluit, Nunavut's capital.

On September 21, 2009, the Company reported the discovery of 2.50 carats of +0.85 mm diamonds from a 398.8 kilogram sample of drill core collected from the CH-6 kimberlite. An additional 170.3 kg sample of drill core collected from a magmatic phase of CH-6 ("CH-6C") has returned 2.08 carats of +0.85 mm diamonds. A total of 2,007 diamonds larger than the 0.075 mm sieve size, including 91 diamonds larger than the 0.600 mm sieve size, was recovered from the sample with the two largest diamonds being a 0.420 carat white, translucent aggregate and a 0.361 carat yellow, transparent distorted crystal.

A 111.4 kilogram sample of drill core collected from CH-10 yielded 152 diamonds larger than the 0.075 mm sieve size, including two diamonds larger than the 0.600 mm sieve size. A 251.7 kilogram sample of surface kimberlite collected from CH-12 yielded 270 diamonds larger than the 0.075 mm sieve size, including three diamonds larger than the 0.600 mm sieve size. The CH-9 and CH-11 kimberlites were also determined to be diamondiferous. A 216.8 kilogram surface sample of CH-9 yielded two diamonds, one larger than the 0.075 mm sieve and one larger than the +0.106 sieve size and a 210.0 kilogram surface sample from CH-11 yielded one +0.075 mm stone.

The following table summarizes all caustic fusion diamond results to date from the CH-6 kimberlite together with results from the CH-10 and CH-12 kimberlites. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ("the SRC").



SUMMARY OF DIAMOND RESULTS FOR SAMPLES FROM THE CH-6 AND CH-10 and CH-12
KIMBERLITES
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Numbers of Diamonds According
to Sieve Size Fraction (mm)
Sample -------------------------------------------------------
Kimberlite Weight +0.075 +0.106 +0.150 +0.212 +0.300 +0.425 +0.600 +0.850
Sample (kg) -0.106 -0.150 -0.212 -0.300 -0.425 -0.600 -0.850 -1.180
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CH-6A(ii) 199.8 629 489 279 186 140 71 44 27
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CH-6B(ii) 199.0 261 226 131 95 56 36 25 8
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CH-6C 170.3 737 527 299 182 117 54 44 28
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Total CH-6 569.1 1627 1242 709 463 313 161 113 63
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CH-10 111.4 64 33 28 11 9 5 2 -
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CH-12 251.7 85 83 45 26 19 9 3 -
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Numbers of Diamonds According Carats
to Sieve Size Fraction (mm) Per
Sample ----------------------------- Carats Tonne
Kimberlite Weight +1.180 +1.700 +2.360 +3.350 Total +0.85 (+0.85
Sample (kg) -1.700 -2.360 -3.350 -4.750 Diamonds mm mm)(i)
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CH-6A(ii) 199.8 15 5 1 1 1887 2.09 10.5
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CH-6B(ii) 199.0 3 1 1 0 843 0.41 2.1
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CH-6C 170.3 10 7 2 0 2007 2.08 12.2
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Total CH-6 569.1 28 13 4 1 4737 4.58 8.0
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CH-10 111.4 - - - - 152 - -
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CH-12 251.7 - - - - 270 - -
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(i) The diamond content of the samples as determined by caustic
dissolution may not be representative of the overall diamond content
of the CH-6 kimberlite due to a number of factors including the limited
area of the kimberlite from which the drill core samples were collected
and the relatively small size of the samples.
(ii) Results for samples of drill core first reported on September 21,2009


Mr. Brooke Clements, President of Peregrine stated "The results we have received from the cumulative 0.569 tonne sample collected from CH-6 are truly outstanding. The presence of ten diamonds larger than 0.10 carats in size from such a small sample suggests that we should see a good population of large, commercial-size diamonds when larger samples are collected from CH-6. It is still very early in the exploration cycle at Chidliak and already 16 kimberlites have been discovered. All twelve of the kimberlites tested so far are diamondiferous and four of these, CH-1, CH-2, CH-6 and CH-7 have produced commercial-size, +0.85 mm diamonds from small kimberlite samples. In addition, CH-10 and CH-12 show promising coarse diamond size distributions and additional drilling and sampling of these kimberlites is warranted. We have only drilled for eight weeks with one drill, drilling 4,000 metres and testing only 15 targets. Less than 15 percent of the property has been flown with airborne geophysics and a comprehensive property-wide heavy mineral sampling programme was completed just this summer. Over 200 anomalies from the existing airborne survey require follow-up and a significantly expanded airborne survey is being planned for early 2010. We are confident that we will discover additional kimberlites with economic potential next year."

CHARACTERISTICS OF THE CH-6, CH-10 AND CH-12 KIMBERLITES AND LARGE CH-6 DIAMONDS

The discovery of the CH-6 kimberlite was reported by Peregrine on August 6, 2009, with additional drilling information reported on September 14, 2009. The CH-6C sample consisted of magmatic kimberlite collected from drill hole number five in the southeastern portion of the pipe. The sample material is described as massive kimberlite with 40 to 50 percent olivine macrocrysts up to ten millimetres in size, abundant garnet and chrome diopside grains and abundant mantle xenoliths up to eight centimetres in size. The following table presents descriptions provided by the SRC for the nine diamonds larger than the 1.700 mm sieve size recovered from the 170.3 kg CH-6C sample.



DESCRIPTION OF DIAMONDS FROM CH-6C LARGER THAN THE 1.700 mm SIEVE SIZE
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Weight
Sieve Carat
Size (mm) (ct) Measurements (mm) Description
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+2.360 0.42 5.0 x 3.4 x 3.3 White, translucent aggregate
-3.350
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+2.360 0.36 3.9 x 3.3 x 3.0 Yellow, transparent distorted crystal
-3.350
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+1.700 0.15 3.2 x 2.4 x 2.1 Off-white, frosted octahedron
-2.360
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+1.700 0.12 3.3 x 2.3 x 1.7 Off-white, transparent macle
-2.360
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+1.700 0.11 3.7 x 2.0 x 1.9 White, transparent distorted crystal
-2.360
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+1.700 0.10 3.3 x 2.2 x 2.1 White, transparent aggregate
-2.360
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+1.700 0.09 3.0 x 2.0 x 2.0 White, transparent octahedron
-2.360
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+1.700 0.08 2.9 x 2.1 x 1.7 White, transparent aggregate
-2.360
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+1.700 0.06 2.8 x 2.1 x 1.2 White, transparent fragment
-2.360
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Twenty-three of the 47 diamonds larger than the 0.85 mm sieve size from the CH-6C sample were classified by the SRC as having a white (colourless) colour, twenty-one were described as off-white and three were yellow. Photos of a selection of diamonds and drill core from CH-6, together with maps showing CH-6, CH-10 and CH-12 are available on Peregrine's web-site at http://www.pdiam.com/i/pdf/chidliak289.pdf.

The discovery of CH-10 was first reported on September 14, 2009. The kimberlite was discovered by drilling two inclined holes across a magnetic low anomaly with an approximate surface diameter of 50 metres. CH-10 is one of four magnetic low anomalies aligned in a north-northwest direction along a 600 metre trend, referred to as the "string of pearls", just north-northwest of the CH-6 kimberlite. The material in the 111.4 kg CH-10 sample was described as massive phlogopite-bearing magmatic kimberlite with 30 to 50 percent olivine macrocrysts up to ten millimetres in size, abundant mantle-derived garnets and minor ilmenite and chrome diopside.

As reported on September 14, 2009, CH-12 was discovered when an area of kimberlite outcrop and subcrop was identified while prospecting a magnetic high geophysical anomaly measuring approximately 100 metres by 50 metres. The material in the 251.7 kg CH-12 sample was described as massive pyroclastic kimberlite with less than five percent country rock xenoliths including limestone, 40 to 50 percent olivine macrocrysts up to ten millimetres in size and abundant indicator minerals.

Twelve of the 16 kiimberlites discovered to date at Chidliak have been tested for diamonds and all of these are diamondiferous. Diamond results for the last four kimberlites discovered in 2009, CH-13 through CH-16, are expected later this quarter. Relevant information regarding the 50 tonne mini-bulk sample of CH-1 and the 2010 Chidliak exploration programme will be released when it becomes available.

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.
    Eric Friedland
    CEO
    604-408-8880
    or
    Peregrine Diamonds Ltd.
    Brooke Clements
    President
    604-408-8880
    or
    Peregrine Diamonds Ltd.
    Investor Relations
    604-408-8880
    investorrelations@pdiam.com
    www.pdiam.com