Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

October 27, 2011 08:20 ET

Peregrine Announces Coarse Diamond Size Distribution at CH-59

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 27, 2011) - Peregrine Diamonds Ltd. (TSX:PGD) ("Peregrine" or "the Company") is pleased to report microdiamond results from the CH-59 and CH-33 kimberlites on the 8,580 square kilometre Chidliak project ("Chidliak" or "the Project"), and from the Q3 kimberlite on the adjacent 4,370 square kilometre Qilaq project ("Qilaq") on Baffin Island, Nunavut, Canada. A 169.2 kilogram sample of kimberlite that was found at surface proximal to CH-59 yielded 174 diamonds larger than the 0.106 mm sieve size, including four diamonds larger than the 0.850 mm sieve size which weigh a total of 0.047 carats. Diamond results for five more kimberlites, CH-6, CH-7, CH-31, CH-44 and CH-45, and additional results from CH-59 are expected during the fourth quarter of 2011 and the first quarter of 2012.

The following table summarizes caustic fusion diamond results from the CH-59 and CH-33 kimberlites. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ("the SRC").

DIAMOND RESULTS FROM THE CH-59 AND CH-33 KIMBERLITES
Kimberlite Sample Weight (kg) Numbers of Diamonds According to Sieve Size Fraction (mm) Total Diamonds Carats
(+0.850
mm size)
+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
-1.700
+1.700
-2.360
CH-59 169.2 69 46 30 13 9 3 4 0 0 174 .047
CH-33 397.7 35 8 5 5 2 0 0 0 0 55 0
CH-33* 473.8 66 43 22 10 6 2 0 1 0 150 0.024
CH-33 Total 871.5 101 51 27 15 8 2 0 1 0 205 0.024
* CH-33 results previously announced on January 13, 2011.

One of the four diamonds larger than 0.850 mm in the CH-59 sample was characterized by the SRC as being white/colourless and three were off-white.

As announced on September 12, 2011, the CH-59 kimberlite was discovered by reverse circulation ("RC") drilling of a magnetic high anomaly. Kimberlite float was discovered near the southern edge of the magnetic anomaly. Diamond results from samples of RC drill cuttings collected from CH-59 are expected later this year. The kimberlite is located approximately two kilometres north of CH-52 and approximately five kilometres to the east of the Southern Focus Area, an area with an eight kilometre radius that hosts six of the seven kimberlites with economic potential identified to date at Chidliak. Based on the RC drilling and its geophysical signature, CH-59 has an estimated surface area of 0.1 hectares.

As announced on August 23, 2010, the CH-33 kimberlite was discovered by prospecting in an area of abundant kimberlite boulders and cobbles. The 397.7 kilogram sample reported here was collected from three angle core holes that were drilled across the kimberlite this year. Based on the interpretation of drill and geophysical data, CH-33 has an estimated surface expression of five hectares.

As announced on August 8, 2011, the Q3 kimberlite was discovered by drilling three RC holes into a magnetic low anomaly on the Company's 100 percent-owned Qilaq project. A 179.5 kilogram sample of RC cuttings was processed for diamonds at the SRC and two diamonds larger than the 0.106 mm sieve size were recovered.

Images of the CH-59 and CH-33 kimberlites from Chidliak and the Q3 kimberlite from Qilaq are available on Peregrine's web-site at www.pdiam.com/i/pdf/Chidliak817.pdf.

Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%). Peregrine is the operator of the exploration programs at Chidliak. Qilaq is owned 100% by Peregrine.

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.

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 project. 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

    Peregrine Diamonds Ltd.
    Mr. Brooke Clements
    President
    604-408-8880

    Peregrine Diamonds Ltd.
    Mr. Mike Westerlund, Vice President, Investor Relations and
    Corporate Communications
    604-408-8880

    Peregrine Diamonds Ltd.
    Investor Relations
    604-408-8880
    604-408-8881 (FAX)
    investorrelations@pdiam.com
    www.pdiam.com