Peregrine Announces Q1 and Q2 Kimberlites at 100% Owned Qilaq Project Are Diamondiferous
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/06/10 -- Peregrine Diamonds Ltd. ('Peregrine' or 'the Company') (TSX: PGD) is pleased to report encouraging diamond results from the first two kimberlites (Q1 and Q2) discovered on the Company's 100 percent-owned, 854,000 hectare Qilaq project ('Qilaq' or 'the Project'). Qilaq is located on Hall Peninsula, northeast of Iqaluit, the capital of Nunavut, Canada, and is adjacent to Peregrine's Chidliak project ('Chidliak') where, as reported in a news release on September 16, 2010, the Company has discovered 50 kimberlites since July, 2008.
A 62.7 kilogram sample from Q1 yielded 38 diamonds larger than 0.106 mm sieve size including one diamond larger than the 0.600 mm sieve size, and a 241.5 kilogram sample from Q2 yielded 253 diamonds larger than 0.106 mm, including three diamonds larger than 0.600 mm.
The following table summarizes caustic fusion diamond results from the Q1 and Q2 kimberlites. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ('the SRC').
SUMMARY OF CAUSTIC FUSION DIAMOND RESULTS FOR SAMPLES FROM THE Q1 AND Q2
KIMBERLITES
-----------------------------------------------------------------
Numbers of Diamonds According to Sieve
Size Fraction (mm)
Sample ----------------------------------------
Weight +0.106 +0.150 +0.212 +0.300
Kimberlite (kg) -0.150 -0.212 -0.300 -0.425
-----------------------------------------------------------------
Q1 62.7 17 9 5 4
-----------------------------------------------------------------
Q2 241.5 111 63 45 23
-----------------------------------------------------------------
----------------------------------------------------------------------------
Numbers of Diamonds According to Sieve
Size Fraction (mm)
---------------------------------------- Carats
+0.425 +0.600 +0.850 +1.180 Total (+0.850mm
Kimberlite -0.600 -0.850 -1.180 -1.700 Diamonds size)
----------------------------------------------------------------------------
Q1 2 1 0 0 38 0
----------------------------------------------------------------------------
Q2 8 2 0 1 253 0.05
----------------------------------------------------------------------------
The diamond in the Q2 sample that is larger than the 1.180 mm sieve size is classified by the SRC as a 0.05 carat white/colourless, transparent distorted crystal.
Mr. Eric Friedland, CEO of Peregrine stated, 'The discovery of two diamondiferous kimberlites at Qilaq in the second year of exploration on the Project is remarkable, particularly since they were made without the benefit of drilling. Our team is looking forward to advancing exploration on this exciting project in 2011, utilizing the results from the 2010 sampling programme. We are confident that more diamondiferous kimberlites will be discovered at Qilaq.'
Q1 and Q2 KIMBERLITES
The Q1 kimberlite is characterized by a magnetic high anomaly with an estimated diameter of 150 metres, associated with a topographic depression that measures approximately 60 metres by 50 metres. The 62.7 kilogram sample represented all the competent kimberlite that could be readily located on the surface within the anomaly. The Q2 kimberlite is located approximately four kilometres south of the Q1 kimberlite and outside of the limits of the 2010 airborne geophysical survey. Two kimberlite outcrops, and numerous cobbles and boulders, were discovered within a surface depression that is more than 80 metres in diameter.
Qilaq is 100 percent-owned by Peregrine and is not encumbered by any third party earn-in or back-in rights other than a one kilometre buffer zone within Qilaq along the boundary of Chidliak which is subject to BHP Billiton's earn-in rights at Chidliak. Both Q1 and Q2 are outside of this buffer zone.
Images from Qilaq are available on Peregrine's web-site at http://www.pdiam.com/i/pdf/qilaq914.pdf.
2010 QILAQ EXPLORATION PROGRAMME SUMMARY
The 2010 Qilaq exploration programme was completed on September 4, and included the following work:
-- Two kimberlites, Q1 and Q2, were discovered by prospecting. The
discovery of Q1 and Q2 was reported by news release on August 5, 2010.
-- A 670 line kilometre airborne geophysical survey was completed in May.
-- 387 KIM samples were collected.
-- 23 metals anomalies, identified in 2009, were evaluated by prospecting,
mapping and sampling and 476 soil samples and 120 rock samples were
collected and submitted for analysis.
Peregrine is currently planning for a 2011 exploration programme at Qilaq, which could include airborne and ground geophysics, drilling of new targets, drilling of Q1 and Q2 in order to estimate their potential size and to obtain a larger sample for diamond testing, KIM sampling, prospecting and the continued evaluation of metals anomalies.
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.
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 Qilaq 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 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, 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.
Contacts:
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
Vice President, Investor Relations
604-408-8880
Peregrine Diamonds Ltd.
Investor Relations
604-408-8880
604-408-8881 (FAX)
investorrelations@pdiam.com
www.pdiam.com