Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.
Peregrine Metals Ltd.

Peregrine Metals Ltd.

August 13, 2008 08:00 ET

Peregrine Metals Reports Independent Resource for Altar Porphyry Copper Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2008) - Peregrine Metals Ltd. and Peregrine Diamonds Ltd. (TSX:PGD) -

- Measured and Indicated Resource of 250.5 million tonnes grading 0.52% copper (2.87 billion lbs contained copper - 0.4% copper cut-off)

- Inferred Resource of 244.3 million tonnes grading 0.54% copper (2.93 billion lbs contained copper - 0.4% copper cut-off)

- Deposit open to expansion in all directions and at depth

Peregrine Metals Ltd. ("Peregrine Metals or the Company") and Peregrine Diamonds Ltd. ("Peregrine Diamonds") are pleased to announce that Peregrine Metals has received an independent NI 43-101 compliant mineral resource estimate for its 100% owned Altar porphyry copper project ("Altar") located in San Juan Province, Argentina. The estimate was jointly prepared by Nilsson Mine Services Ltd. ("NMS") and GeoSim Services Inc. ("GeoSim"). The resource estimate is summarized in the following table:



Altar Measured, Indicated and Inferred Mineral Resources, August, 2008

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Cut-off Quantity Grade Contained Metal
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Copper Tonnes Copper Gold Copper Gold
(%) (Million) (%) (g/t) (Billion lbs) (Million oz)
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Measured + Indicated:
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0.2 589 0.40 0.055 5.22 1.05
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0.3 462 0.44 0.060 4.51 0.89
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0.4 251 0.52 0.070 2.87 0.57
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0.5 104 0.63 0.081 1.43 0.27
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0.6 45 0.73 0.089 0.73 0.13
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0.7 22 0.83 0.095 0.41 0.07
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Inferred:
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0.2 720 0.38 0.052 6.07 1.21
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0.3 485 0.45 0.056 4.78 0.87
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0.4 244 0.54 0.056 2.93 0.44
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0.5 105 0.67 0.049 1.55 0.17
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0.6 61 0.76 0.039 1.03 0.08
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0.7 49 0.79 0.035 0.85 0.06
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Measured:
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0.2 63 0.48 0.070 0.68 0.15
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0.3 58 0.50 0.080 0.65 0.14
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0.4 42 0.57 0.080 0.52 0.11
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0.5 24 0.66 0.094 0.34 0.07
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0.6 13 0.75 0.104 0.21 0.04
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0.7 7 0.84 0.114 0.13 0.02
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Indicated:
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0.2 525 0.39 0.050 4.54 0.90
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0.3 404 0.43 0.060 3.86 0.74
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0.4 209 0.51 0.070 2.35 0.45
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0.5 80 0.62 0.077 1.09 0.20
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0.6 33 0.73 0.084 0.52 0.09
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0.7 15 0.82 0.087 0.28 0.04
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Notes:
1. The mineral resource was estimated by ordinary kriging constrained by a
3D solid model based on a 0.10% copper grade shell. Block dimensions
were 20 metres by 20 metres horizontal and 15 metres vertical.
2. Grade estimation was based on analyses of core samples from 64 diamond
drill holes (29,073 metres) completed between April, 2003 and April,
2008. Assays were composited in 15 metre down-hole intervals.
3. The density values assigned to the major lithologies were based on 720
bulk density measurements of drill core.
4. The resource model was created using Leapfrog3d software for geologic
and grade shell modeling and Gemcom Surpac Vision software for block
modeling and grade estimation.
5. Mineral resources are not mineral reserves until they have demonstrated
economic viability based on a feasibility study or pre-feasibility
study.


Altar is a large Andean-style porphyry copper deposit. The alteration zone at Altar encompasses an area measuring three by two kilometres with a strong, coincident induced polarization (IP) geophysical anomaly of approximately the same size; only half of which has been tested by the 64 diamond drill holes that total 29,073 metres. The nominal hole spacing for step-out drilling is 200 metres and 100 metres for in-fill drilling. The resource remains open to expansion in all directions and at depth.

The copper mineralization at Altar includes both supergene chalcocite and hypogene chalcocite-covellite-bornite replacing earlier chalcopyrite within the upper 300 metres of the deposit. In several holes mineralization begins at surface. Preliminary metallurgical test-work on the chalcocite enrichment zone suggests that this material would be very amenable to relatively low cost heap leaching and solvent extraction/electrowinning (SX/EW). The vertical limits of the deposit are currently unknown and the mineralization extends below the depth of the deepest drill hole, DDH-ALD-43, which was drilled to 928.90 metres of depth. DDH-ALD-43 intersected 718.90 metres grading 0.72% copper, including an upper chalcocite-enrichment zone in the top 82 metres of the mineralization grading 0.97% copper, and the bottom 322 metres of the hole grading 0.90% copper.

Quality Assurance and Quality Control

All of the Altar drill core was sampled in continuous 2-metre intervals. One half of the core was submitted for assay and the other half was archived in the Company's secure facility in Mendoza, Argentina. Drill core samples were assayed by Acme Analytical Laboratories, at their facilities in Mendoza, Argentina and Santiago, Chile; and by Alex Stewart (Assayers) Argentina S.A., located in Mendoza, Argentina. Copper values were determined by 32-element ICP and atomic absorption methods. Gold values were determined by fire assay.

Peregrine Metals has a comprehensive quality assurance - quality control ("QA-QC") program in place that was set up under the direction of Dr. Barry Smee, P.Geo, Peregrine Metals' quality control consultant. The QA-QC program was supervised by Jeff Toohey, M.Sc., P.Eng., a Qualified Person as defined by NI 43-101, and was managed on-site by Project Manager Roger Rey, M.Sc.. Dr. Smee provides independent monitoring of the quality control database as well as periodic laboratory audits.

There are no known drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data used to prepare the mineral resource included in this news release. Peregrine Metals is not aware of any environmental, permitting, legal, title, taxation, socio-political, marketing or other relevant issues by which the mineral resource included in this news release may be materially affected.

Ronald G. Simpson, P.Geo, of GeoSim Services Inc. is a Qualified Person as defined by NI 43-101 and is responsible for the mineral resource estimate included in this disclosure. Mr. Simpson has reviewed this news release and approves of the statements related to the estimation of the Altar mineral resource. Jeff Toohey, M.Sc., P.Eng., Vice President Exploration for Peregrine Metals is a Qualified Person as defined by NI 43-101 and is responsible for the design and conduct of all of the work carried out by Peregrine Metals in South America. Mr. Toohey has reviewed and approved the contents of this news release.

Peregrine Metals holds a 100% interest in the Altar project subject to a 1% NSR royalty granted to Rio Tinto and another 1% NSR royalty granted to the underlying concession owners. The latter royalty interest may be purchased by Peregrine Metals from the underlying owners at any time for USD$1 million.

The upcoming 2008-2009 drilling program is designed to define the lateral and depth limits of the Altar porphyry copper system and to provide in-fill drilling for continued resource expansion and resource category upgrading. Peregrine Metals has begun work on a Preliminary Economic Assessment ("PEA") of a leaching operation at Altar. The preliminary economics of a concentrator operation will also be investigated in the PEA. More information regarding the scope and timing of the PEA will be released in the 4th Quarter, 2008.

As announced on June 3, 2008, Peregrine Diamonds and Peregrine Metals plan to merge to form a new, multi-commodity resource company. NMS and GeoSim will prepare a NI 43-101 technical report supporting the information disclosed in this news release within 45 days. A copy of the resource estimation technical report will be available on www.sedar.com under Peregrine Diamonds.

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. and Peregrine Metals Ltd. believe that their 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. and Peregrine Metals Ltd.
    Eric Friedland
    President and CEO of Metals and CEO of Diamonds
    (604) 669-8800
    or
    Peregrine Diamonds Ltd. and Peregrine Metals Ltd.
    Brooke Clements
    President of Diamonds and Senior Vice President of Metals
    (604) 408-8880
    Website: www.pdiam.com