Peregrine Reports Coarse Diamond Size Distributions and Encouraging Diamond Colours in CH-44 and CH-45 Kimberlites at Chidliak
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/21/11 -- Peregrine Diamonds Ltd. (TSX: PGD) ('Peregrine' or 'the Company') is pleased to report microdiamond results that confirm coarse diamond size distributions in the CH-44 and CH-45 kimberlites on the 8,580 square kilometre Chidliak project ('Chidliak' or 'the Project'), Baffin Island, Nunavut, Canada. A 535.1 kilogram sample collected by core drilling from CH-44 in 2011 yielded 766 diamonds larger than the 0.106 mm sieve size, including 13 commercial-size diamonds larger than the 0.850 mm sieve size which weigh a total of 0.197 carats. A 374.8 kilogram sample of drill core collected from CH-45 in 2011 yielded 170 diamonds larger than the 0.106 mm sieve size, including two commercial-size diamonds weighing 0.268 carats. The diamonds in the CH-44 and CH-45 samples display a favourable colour profile, with 94 and 83 percent, respectively, of diamonds larger than the 0.600 mm sieve size being classified as white/colourless, off-white or yellow. Diamond results for three more kimberlites, CH-6, CH-7 and CH-31 and additional results from CH-59 are expected during the fourth quarter of 2011 and the first quarter of 2012.
Mr. Eric Friedland, CEO, commented on today's news, 'These new results confirm the economic potential of CH-44 and CH-45, located just two kilometres apart in the Southern Focus Area. We are especially encouraged by the colour profile of the diamonds, with 40 percent of the larger CH-44 diamonds and 50 percent of the larger CH-45 diamonds being classified as white/colourless. CH-44 and CH-45 now join CH-6 and CH-7 as part of the upcoming Chidliak bulk sampling program scheduled to commence in February, 2012. The objectives of the bulk sampling program will be to establish diamond grades and initial diamond valuations for key kimberlites, an important step in confirming economic viability of what could become Baffin Island's first diamond mine.'
The following table summarizes caustic fusion diamond results from samples collected from the CH-44 and CH-45 kimberlites in 2010 and 2011. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ('the SRC').
DIAMOND RESULTS FROM THE CH-44 AND CH-45 KIMBERLITES
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Sample Numbers of Diamonds According to Sieve Size
Kimberlite Weight (kg) Fraction (mm)
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0.106 0.150 0.212 0.300 0.425 0.600
-0.150 -0.212 -0.300 -0.425 -0.600 -0.850
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CH-44
Core 535.1 310 168 130 81 42 22
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CH-44(i)
RC 312.2 431 208 146 72 31 13
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CH-45MK
Core 196.9 42 27 18 17 8 2
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CH-45VK
Core 177.9 9 18 11 12 2 2
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CH-45 Core
Total 374.8 51 45 29 29 10 4
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CH-45(ii)
RC 173.6 55 39 30 19 6 7
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Carats
Numbers of Diamonds According to Total ( 0.850
Kimberlite Sieve Size Fraction (mm) Diamonds mm size)
--------------------------------
0.850 1.180 1.700 2.36
-1.180 -1.700 -2.360 -3.350
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CH-44
Core 10 3 0 0 766 0.197
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CH-44(i)
RC 6 2 0 1 910 0.450
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CH-45MK
Core 0 0 0 0 114 -
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CH-45VK
Core 0 0 1 1 56 0.268
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CH-45 Core
Total 0 0 1 1 170 0.268
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CH-45(ii)
RC 1 0 1 0 158 0.091
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Note: MK refers to magmatic kimberlite and VK refers to volcaniclastic
kimberlite.
(i) CH-44 results from RC drilling previously announced on November 25,
2010.
(ii) CH-45 results from RC drilling previously announced on January 13,
2011.
The three largest diamonds in the CH-44 sample were described by the SRC as a 0.05 carat off-white octahedron, a 0.03 carat white/colourless octahedron, and a 0.04 carat off-white fragment. The two largest diamonds in the CH-45 volcaniclastic kimberlite sample were a 0.06 carat white/colourless octahedron and a 0.21 carat gray cubic crystal.
The diamond colour profile is consistent throughout the size classes. For the diamonds larger than the 0.600 mm sieve size, the colour profile for both CH-44 and CH-45, as determined by SRC, is as follows:
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CH-44 CH-45
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Number of Number of
diamonds Percentage diamonds Percentage
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White/Colourless 14 40% 3 50%
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Off-white 15 43% 2 33%
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Yellow 4 11% 0 0%
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Grey 2 6% 1 17%
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Total 35 6
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Images of the CH-44 and CH-45 kimberlites and several of the diamonds are available on Peregrine's web-site at www.pdiam.com/i/pdf/Chidliak294.pdf.
The CH-44 and CH-45 kimberlites were discovered in 2010 and are located in 'the Southern Focus Area', an area with an eight kilometre radius that hosts six of the seven kimberlites with economic potential identified to date at Chidliak: CH-1, CH-6, CH-7, CH-31, CH-44 and CH-45.
The discovery of the CH-44 kimberlite by reverse circulation ('RC') drilling was announced on September 16, 2010. CH-44 is estimated to be 0.4 hectares in size and is described as an olivine macrocrystic kimberlite with abundant fresh kimberlite indicator minerals including garnet, chrome-diopside and ilmenite.
The discovery of the CH-45 kimberlite by RC drilling was announced on September 16, 2010. CH-45 is estimated to be 0.3 hectares in size and is interpreted to consist of at least two phases of kimberlite. One phase is a massive coherent kimberlite with coarse olivine macrocrysts and fresh garnets with a magnetic high geophysical signature. The other phase of kimberlite is interpreted as being volcaniclastic in origin and has a neutral magnetic geophysical signature.
Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%). Peregrine is the operator of the exploration programs at Chidliak.
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. Alan O'Connor, Professional Geologist, Peregrine's Chidliak Project Manager, 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. O'Connor 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 programme, 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 programmes, 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.
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 and Corporate Communications
604-408-8880
Peregrine Diamonds Ltd.
Investor Relations
604-408-8880
604-408-8881 (FAX)
investorrelations@pdiam.com
www.pdiam.com