Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

February 24, 2011 13:51 ET

Peregrine Announces Coarse Diamond Size Distribution in CH-20 Kimberlite Located 100 Metres From CH-6 at Chidliak

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 24, 2011) - Peregrine Diamonds Ltd. (TSX:PGD) ("Peregrine" or "the Company") is pleased to report a coarse diamond size distribution in a 74.4 kilogram sample collected by core drilling from the CH-20 kimberlite located on the 8,580 square kilometre Chidliak project ("Chidliak" or "the Project"), Baffin Island, Nunavut, Canada. The sample yielded 96 diamonds larger than the 0.106 mm sieve size, including two diamonds larger than the 0.850 mm sieve size which weigh a total of 0.036 carats. CH-20 is located approximately 100 metres north of the CH-6 kimberlite and 250 metres south of the CH-10 kimberlite. As announced on December 6, 2010, a 14.11 tonne mini-bulk sample collected from CH-6 returned an average grade of 2.84 carats per tonne. As announced on November 12, 2009, a 111.4 kilogram sample collected from CH-10 yielded 152 diamonds larger than the 0.075 mm sieve size including two stones larger than the 0.600 mm sieve size.

The CH-20 and CH-10 kimberlites are represented by two of four magnetic anomalies referred to as the String of Pearls that are aligned along a 600 metre trend in a north-northwest direction from CH-6. Two of these magnetic anomalies and the associated structural trend have yet to be drill tested. The String of Pearls as well as other associated magnetic low anomalies located several hundred metres to the east, present an opportunity to discover significant additional kimberlite tonnage in the vicinity of CH-6. For an image showing the String of Pearls and CH-6 see www.pdiam.com/i/pdf/Chidliak916.pdf. CH-6 and the String of Pearls, along with five additional diamondiferous kimberlites with economic potential in Arctic settings, are located within an area that has an eight kilometre radius, the Southern Focus Area.

The following table summarizes caustic fusion diamond results from the CH-20 kimberlite. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ("the SRC").

SUMMARY OF CAUSTIC FUSION RESULTS FOR SAMPLES FROM THE CH-20 KIMBERLITE
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
CH-20 74.4 39 23 17 6 6 3 1 1 96 0.036

The two diamonds larger than the 0.850 mm sieve size were classified by the SRC as being a 0.022 carat off-white, transparent, distorted crystal and a 0.014 carat white/colourless, transparent tetrahexahedron.

As reported on July 19, 2010, CH-20 was discovered by drilling an inclined hole across a magnetic low anomaly, kimberlite was intersected from a depth of 23 to 44 metres. The kimberlite is described as being olivine-rich, black macrocrystic kimberlite.

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.

Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%).

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 programmes 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 programme, 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 programmes, 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.
    Mr. Mike Westerlund, Vice President,
    Investor Relations and Corporate Communications
    604-408-8880
    or
    Peregrine Diamonds Ltd.
    Investor Relations
    604-408-8880
    604-408-8881 (FAX)
    investorrelations@pdiam.com
    www.pdiam.com