Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

October 06, 2011 08:20 ET

Peregrine Announces High Diamond Counts for CH-52 and CH-58 Kimberlites at Chidliak

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 6, 2011) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report microdiamond results from the CH-52 and CH-58 kimberlites which were discovered earlier this year on the 8,580 square kilometre Chidliak project ("Chidliak" or "the Project"), Baffin Island, Nunavut, Canada. A 208.4 kilogram sample collected by core drilling from the CH-52 kimberlite yielded 252 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 0.045 carats. In addition, a 194.9 kilogram sample from the CH-58 kimberlite yielded 428 diamonds larger than the 0.106 mm sieve size, including one diamond larger than the 0.850 mm sieve size. Diamond results for eight more kimberlites from Chidliak are expected during the fourth quarter of 2011 and the first quarter of 2012.

As announced on June 2, 2011, the CH-52 kimberlite was discovered with the drilling of one vertical reverse circulation hole. Due to the presence of abundant kimberlite indicator minerals in the drill cuttings, two angle core holes were subsequently drilled across the body. The 208.4 kilogram sample reported here was collected from the drill core. The kimberlite is located approximately 200 metres south of the Sunrise camp and is five kilometres to the east of the Southern Focus Area, an area with an eight kilometre radius that hosts six of the seven kimberlites identified to date at Chidliak with economic diamond mining potential. The surface area of CH-52 is estimated at 0.2 hectares.

As announced on June 22, 2011, the CH-58 kimberlite was discovered by drilling two angled core holes across the body. CH-58 is located approximately 20 kilometres north of the CH-6 kimberlite and 300 metres south of the CH-55 kimberlite. As announced on September 12, 2011, a 195.6 kilogram sample from CH-55 yielded 214 diamonds larger than the 0.106 mm sieve size including one diamond larger than the 1.18 mm sieve size that weighed 0.03 carats. Both CH-55 and CH-58 are estimated to be over 0.5 hectares in size based on geophysical and drill data.

The following table summarizes caustic fusion diamond results from the CH-52 and CH-58 kimberlites. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ("the SRC").

Kimber-
lite
Sample
Weight
(kg)
Numbers of Diamonds According to Sieve Size Fraction (mm)
+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-52 208.4 129 75 23 9 8 4 4 0
CH-58 194.9 173 140 53 27 26 8 1 0
Total
Diamonds
Carats
(+0.850
mm size)
252 0.045
428 0.006

Three of the four diamonds larger than 0.850 mm in the CH-52 sample were characterized by the SRC as being white/colourless and one was off-white. The diamond larger than 0.850 mm in the CH-58 sample was also described as being white/colourless.

With the presence of commercial-size diamonds in small samples collected from CH-52, CH-55 and CH-58, more work will be scheduled on these kimberlites to determine their economic potential. Images of the CH-52, CH-55 and CH-58 kimberlites are available on Peregrine's website at www.pdiam.com/i/pdf/Chidliak416.pdf.

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 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 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

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

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

    Peregrine Diamonds Ltd.
    Investor Relations
    604-408-8880
    investorrelations@pdiam.com
    www.pdiam.com