Peregrine Diamonds Ltd.
TSX : PGD

Peregrine Diamonds Ltd.

July 16, 2009 08:31 ET

Peregrine Reports First Kimberlite Drill Intersection at CH-1 and the Discovery of Two Additional Kimberlites at Chidliak, Baffin Island, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2009) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to report the first drill results from the 9,800 square kilometre Chidliak property ("Chidliak" or "the Property"), Baffin Island, Nunavut, Canada. The southwestern corner of Chidliak is situated only 60 kilometres northeast of Iqaluit, the capital of Nunavut. Kimberlite was confirmed by drilling at CH-1 and an additional kimberlite, designated CH-4, was discovered by drilling. A fifth kimberlite, designated CH-5, was discovered when kimberlite cobbles and boulders were identified at surface while prospecting a priority 2 geophysical anomaly.

Drilling commenced at Chidliak on July 3, 2009. The drill data generated to July 12, 2009 is presented in the following table.



SUMMARY OF 2009 CHIDLIAK DRILLING COMPLETED TO JULY 12, 2009
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Inclination
Kimberlite, from Overburden Kimberlite End of
Drill Hole # Azimuth Horizontal (m) Intercepts (m) Hole (m)
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CH-1, #1 38 degrees 45 degrees 5 56-111, 129-137, 245
152-208
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CH-4, #1 132 degrees 45 degrees 7 11-82, 92-112 182
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CH-4, #2 132 degrees 60 degrees 7 46-106, 117-157 180
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Note: All intercepts below the overburden that are not kimberlite are
granitic gneiss.


CH-1 KIMBERLITE

The first drill hole into CH-1 was collared southwest of the geophysical anomaly that represents the kimberlite and was drilled at an azimuth of 38 degrees and inclination of 45 degrees from horizontal across the southern portion of the anomaly. The geophysical anomaly has an estimated surface expression of two to three hectares as determined by ground geophysics. Kimberlite intervals of 55, 12 and 56 metres respectively, were intersected. The kimberlitic material is described as being magmatic with abundant medium- to coarse- grained olivine, coarse-grained garnet with kelyphitic rims and abundant mantle xenoliths. The kimberlite appears similar to the surface magmatic kimberlite from which a 2.28 tonne sample was collected in 2008. As announced on November 18, 2008, the sample returned a diamond content of 1.56 carats per tonne for diamonds larger than 0.85 mm including a 2.01 carat clear, colourless gem diamond.

Approximately 40 percent of the interpreted surface area of the CH-1 kimberlite, including the kimberlite outcrop discovered and sampled in 2008, is currently covered with snow. When the snow recedes, two additional drill holes are planned for CH-1. In 2008, the outcrop was free of snow on July 20. The holes will be collared near the kimberlite outcrop and one of these will be drilled at an azimuth that will allow for the testing of the northern portion of the geophysical anomaly. As announced on May 27, 2009, Peregrine plans to collect a mini-bulk sample of approximately 50 tonnes of kimberlite from the surface exposure at CH-1 in late July or August of this year.

CH-4 KIMBERLITE

The CH-4 kimberlite is situated 1.5 kilometres west of the CH-1 kimberlite. Two holes, drilled across a geophysical anomaly with an estimated surface expression of two hectares as determined by ground geophysics, were drilled at an azimuth of 132 degrees from the same setup at inclinations of 45 and 60 degrees from horizontal. Kimberlite was intersected at a depth of 11 metres in the first drill hole. The longest kimberlite intersections in each hole were 71 and 60 metres respectively. The kimberlite material at CH-4 is more altered than that encountered at CH-1 and is described in the field as being dominantly olivine-rich magmatic material. Sufficient kimberlite core currently exists for representative microdiamond samples, though additional drill holes will be required to fully assess the geometry and geology of this kimberlite.

CH-5 KIMBERLITE

The CH-5 kimberlite was discovered on July 10, 2009 when kimberlite cobbles and boulders were identified at surface while prospecting a priority 2 geophysical anomaly situated approximately eight kilometres west of the CH-4 kimberlite. The magnetic high anomaly has an estimated surface expression of one to two hectares as determined from airborne geophysics. Two different types of kimberlite were tentatively identified in the field. The first type is a coarse-grained altered material with limestone xenoliths and altered pyrope garnet and olivine. The second type is finer-grained with altered indicator minerals. Samples weighing approximately 200 kilograms will be collected from each of the two kimberlite phases for microdiamond analysis and results are expected next month. This discovery of kimberlite at a priority 2 anomaly that was not scheduled for drilling this year is a further illustration of the exploration potential at Chidliak.

FUTURE WORK

Samples of drill core from the CH-1 and CH-4 kimberlites and surface material from the CH-5 kimberlite will now be more fully analyzed and described at Peregrine's secure core facility in Iqaluit. Samples will be selected and then processed for microdiamonds by caustic fusion at the Saskatchewan Research Council Geoanalytical Laboratories during the third quarter of this year. The drilling and prospecting of high priority kimberlite-type anomalies continues and the next drill target is located approximately 12 kilometres northwest of CH-1. All five kimberlites discovered to date at Chidliak are represented by magnetic high geophysical anomalies; magnetic low geophysical anomalies are also present on the property and several of these will be evaluated by drilling this summer. Updates from the exploration programme will be provided on a regular basis.

A slide show of recent photographs from Iqaluit and the Chidliak programme is available on Peregrine's web-site at http://www.pdiam.com/i/flash/chidliak.html.

Peregrine is the operator of the approved 2009 Chidliak exploration programme which is being fully funded by BHP Billiton. As announced on November 24, 2008, BHP Billiton has elected to exercise its earn-in rights for Chidliak and, under the terms of the earn-in agreement, must incur a total of $22.3 million dollars in exploration expenditures in order to earn a 51% interest in the Property.

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.

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