Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

June 22, 2011 08:20 ET

Peregrine Discovers Three More Kimberlites at Chidliak

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 22, 2011) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report the discovery by drilling of three new kimberlites, CH-56, CH-57 and CH-58, on the Chidliak project ("Chidliak" or "the Project"). Chidliak is located on southern Baffin Island approximately 100 kilometres northeast of Iqaluit, the capital of Nunavut, Canada. The company has drilled 15 targets and discovered eight kimberlites since April of this year, a success rate of 53 percent. To date, 35 of the 58 kimberlites that have been discovered at Chidliak have been tested for diamonds and seven of these have economic diamond mining potential in Arctic settings. In addition to the three new discoveries, a second core hole has been drilled into the CH-55 kimberlite, the discovery of which was reported on June 2, 2011. Currently one core rig has commenced drilling on kimberlite CH-31 and the other core rig on kimberlite CH-33. The reverse circulation rig will continue drilling priority targets.

Drill core obtained this year from the CH-55, CH-56 and CH-58 kimberlites and reverse circulation drill cuttings from the CH-57 kimberlite will be analyzed for diamonds by caustic fusion at the Saskatchewan Research Council Geoanalytical Laboratories. Results of the analyses are expected in the third quarter.

DRILL HOLE DATA FROM THE CH-55, CH-56, CH-57 and CH-58 KIMBERLITES
Kimberlite, Drill Hole #AzimuthInclination from HorizontalWater/Ice (m)Overburden (m)Kimberlite Intercepts (m)End of Hole (m)
FromToInterceptTrue Width of Intercept*
CH-55 #1114-450951.0159.0108.076.4185
CH-55 #2114-600677.5206.0128.564.3246
CH-56 #1150-496042.043.01.00.66236
71.1209.4138.390.7
CH-57 #190-6001323.044.021.010.544
CH-58 #1180-4507.539.0106.567.547.7138
CH-58 #2180-6007.556.8200.9144.172.1231
220.5222.21.70.85
The two holes at CH-55 and at CH-58 were drilled from the same setup.
Note: All intercepts below the overburden that are not kimberlite are gneiss.
* Assumes vertical kimberlite contacts

The CH-56 kimberlite is located approximately 1.6 kilometres southwest of Sunrise camp under a lake, and has an estimated surface expression of one hectare based on the interpretation of ground geophysics and the drill intersection. The CH-57 kimberlite is located nine kilometres east of Sunrise camp and has an estimated surface expression of 1.5 hectares based on ground geophysical data. The CH-58 kimberlite is located approximately 20 kilometres north of the CH-6 kimberlite and 300 metres south of the CH-55 kimberlite. CH-55 and CH-58 are each estimated to be over 0.5 hectares in size based on geophysical and drill data.

A location map and photographs of the new kimberlite discoveries are available at www.pdiam.com/i/pdf/Chidliak388.pdf.

Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%). Peregrine is the operator of the 2011 program.

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 at Chidliak. 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
    VP, Investor Relations and Corporate Communication
    604-408-8880

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