Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

November 18, 2008 07:31 ET

Peregrine Discovers 2.01 Carat Gem Quality Diamond in CH-1 Kimberlite at Chidliak, Baffin Island; 2.28 Tonne Sample From CH-1 Returns Diamond Content of 1.56 Carats Per Tonne

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 18, 2008) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report the discovery of a 2.01 carat, gem quality, clear colourless octahedron diamond in a 2.28 tonne sample collected from the CH-1 kimberlite during the 2008 summer field season. The CH-1 kimberlite is located on the 9,800 square kilometre Chidliak property ("Chidliak"), Baffin Island, Nunavut, Canada, 150 kilometres northeast of Iqaluit, capital of Nunavut.

A 2.28 tonne mini-bulk sample collected by hand from the surface of the CH-1 kimberlite yielded 168 diamonds larger than the 0.425 mm sieve size, including 34 commercial-size diamonds larger than the 0.85 mm sieve size weighing a total of 3.55 carats. The diamond content of the 2.28 tonne sample for diamonds larger than the 0.85 mm sieve size is 1.56 carats per tonne ("cpt"). The diamond content of the 2.28 tonne sample for the 16 diamonds larger than the 1.18 mm sieve size weighing 3.25 carats is 1.43 cpt.

The CH-1 kimberlite is estimated at six hectares in size, based on the size of the geophysical anomaly and the distribution of kimberlite material on the surface. Interpretation by Peregrine's field crew suggests that the CH-1 kimberlite consists of at least three different phases: CH-1A, CH-1B and CH-1C. The 2.28 tonne mini-bulk sample consisted of 1.17 and 1.11 tonne samples collected from the CH-1A and CH-1B phases respectively. The 1.17 tonne sample of CH-1A consists of magmatic kimberlite material collected in a representative manner from an outcrop measuring approximately three metres by five metres. The 1.11 tonne sample of CH-1B consists of magmatic kimberlite boulders and cobbles collected from the surface of CH-1 over an area representing approximately 50 percent of the estimated surface area of the kimberlite. The pyroclastic kimberlite phase, CH-1C, was not present in sufficient quantity on the surface to collect a larger sample.

The following table summarizes the diamond results for the 2.28 tonne sample from CH-1. Diamonds larger than the 0.425 mm sieve size were recovered by caustic fusion at the Saskatchewan Research Council Geoanalytical Laboratories ("SRC").



SUMMARY OF CH-1 MINI-BULK SAMPLE DIAMOND RESULTS
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Numbers of Diamonds According to Sieve Size Fraction (mm)
Sample ------------------------------------------------------------
Weight +0.425 +0.600 +0.850 +1.180 +1.700 +2.360 +3.350
Sample (kg) -0.600 -0.850 -1.180 -1.700 -2.360 -3.350 -4.750 +4.750
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CH-1A 1,174 38 31 9 5 0 1 0 1
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CH-1B 1,106 37 28 9 3 4 2 0 0
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TOTAL 2,280 75 59 18 8 4 3 0 1
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Total Total
Carats Carats Diamond
Sample greater greater Content
Weight Total than than (+0.85mm)
Sample (kg) Diamonds 0.850mm 1.18mm (cpt)
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CH-1A 1,174 85 2.55 2.45 2.17
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CH-1B 1,106 83 1.00 0.80 0.90
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TOTAL 2,280 168 3.55 3.25 1.56
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The diamond content of the samples collected to date may not be fully representative of the overall diamond grade of the CH-1 kimberlite due to a number of factors including the limited area of the surface of the kimberlite from which the samples were collected and the relatively small size of the samples.

The two largest diamonds in the 1.17 tonne sample of CH-1A were a 2.01 carat gem quality white/colourless octahedron measuring 7.50 x 5.50 x 3.60 mm and a 0.22 carat off-white fragment measuring 5.20 x 4.00 x 0.88 mm. The two largest diamonds in the 1.11 tonne sample of CH-1B were a 0.33 carat off-white aggregate measuring 4.30 x 3.30 x 2.00 mm and a 0.14 carat white/colourless octahedron measuring 3.12 x 2.24 x 1.80 mm.

The diamond results from the 2.28 tonne mini-bulk sample provide support to the initial caustic fusion diamond results for a 288.9 kilogram sample that indicated a coarse diamond size distribution within the CH-1 kimberlite (see news release dated October 28, 2008). A coarse diamond size distribution is often a favourable indicator for the ultimate average diamond value of a kimberlite. The diamond results generated thus far from CH-1 and the results from two other kimberlites discovered at Chidliak this year, CH-2 and CH-3, illustrate the diamond potential of Canada's newest diamond district on southern Baffin Island. The presence of over 170 kimberlite-type geophysical anomalies with associated kimberlite indicator mineral anomalies on the property strongly suggests that additional large diamondiferous kimberlites can be discovered by follow-up drilling in 2009.

Preparations for the 2009 Chidliak Exploration Program

Peregrine is currently planning for a 2009 exploration program that includes the following elements: the drilling of new kimberlite targets, definition drilling of the known kimberlites, airborne and ground geophysics, heavy mineral sampling, metals exploration and an environmental baseline study. Given the encouraging diamond results received from CH-1, the collection of additional surface samples from that kimberlite is also planned.

Information on the Chidliak property and the CH-1, CH-2 and CH-3 kimberlite discoveries, including maps, photographs, diamond results, and photographs of the 2.01 carat octahedron diamond recovered from CH-1 are available at http://www.pdiam.com/i/pdf/chidliak5.pdf.

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.

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 SRC under strict chain of custody conditions supervised by senior Peregrine personnel.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Peregrine's projects and other statements that are not historical facts. When used in this document, the words such as "could", "commonly", "confident", "plan", "encouraging", "estimate", "expect", "anticipated", "intend", "imply", "likely", "may", "potential", "should", "scheduled", "significant", "suggest", and similar expressions are forward-looking statements. Although Peregrine Diamonds Ltd. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the corporation's periodic filings with Canadian regulators.

Contact Information

  • Peregrine Diamonds Ltd.
    Brooke Clements
    President
    (604) 408-8880
    or
    Peregrine Diamonds Ltd.
    Eric Friedland
    CEO
    (604) 408-8880
    or
    Peregrine Diamonds Ltd.
    Investor Relations
    (604) 408-8880
    (604) 408-8881 (FAX)
    Email: investorrelations@pdiam.com
    Website: www.pdiam.com