Peregrine Provides Chidliak Update and Announces Discovery of Three New Kimberlites

Peregrine Provides Chidliak Update and Announces Discovery of Three New 
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 09/09/13 -- Peregrine
Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to
provide an update on activities at its 100 percent-owned Chidliak
project ("Chidliak" or "the Project"), located on Baffin Island, 120
kilometres from Iqaluit, the capital of Nunavut, Canada. The Chidliak
summer exploration program operated by De Beers Canada Inc. ("De
Beers") was completed on August 19. Highlights from this program
include the discovery by De Beers of two new kimberlites and the
discovery of a kimberlite dyke by government geologists. In addition,
possible kimberlite float, which is undergoing final petrographic
confirmation by De Beers, was found in numerous other locations. As
reported on April 23 and June 5, 2013, Peregrine collected a bulk
sample weighing approximately 508 wet tonnes from the CH-6 kimberlite
by surface trenching. Approximately 470 wet tonnes of this sample has
been transported from Iqaluit to the De Beers dense media separation
("DMS") facility in Sudbury, Ontario. Approximately ten wet tonnes of
kimberlite was processed at the Saskatchewan Research Council ("the
SRC") in July and the approximately 28 wet tonnes of kimberlite
material that remains in Iqaluit will be shipped to Sudbury this
month. Processing of approximately 250 wet tonnes of the bulk sample
by DMS is scheduled to commence in late September at the De Beers DMS
facility. This processing will be performed by De Beers and is
expected to yield a heavy mineral concentrate weighing approximately
1.8 dry tonnes. Final diamond recovery from this concentrate will be
managed by Peregrine and will be undertaken at the SRC. The final
diamond recovery process will be initiated upon De Beers delivering
to the Company notice of their decision regarding their right to
enter into an earn-in and joint venture agreement for Chidliak. 
The De Beers summer exploration program at Chidliak included the
evaluation of priority geophysical anomalies by prospecting,
orientation geophysical surveys, and bedrock and surficial mapping.
During the course of the program, De Beers field teams discovered two
new kimberlite occurrences and numerous occurrences of possible
kimberlite float requiring additional work before being confirmed.
The first confirmed discovery is a kimberlite dyke approximately one
metre wide associated with a circular magnetic anomaly with an
estimated surface expression from ground magnetics of approximately
0.5 hectares. At the second site, kimberlite float was found
associated with a circular geophysical anomaly that has an estimated
surface expression from airborne magnetics of approximately 0.5
hectares. Concurrent with the De Beers Chidliak exploration program,
the Canada Nunavut Geoscience Office ("CNGO") conducted a bedrock and
surficial mapping program over a portion of the Hall Peninsula of
Baffin Island. During the course of their fieldwork, the CNGO
reported the discovery of a new kimberlite dyke on the Project. In
total three new confirmed kimberlites have been discovered in 2013
bringing the total number of kimberlites at Chidliak to 64. 
De Beers completed ground geophysical orientation surveys over twelve
known kimberlites using the following methods: gravity,
electromagnetics, ground penetrating radar and magnetics. The results
from these surveys will be used to determine the most effective
geophysical technique for discovering additional kimberlites in
future exploration programs. To date initial results from the gravity
surveys have been reviewed by Peregrine and indicate that most of the
known kimberlites that were surveyed have a strong gravity response.
Prior to this year, no gravity surveys had been executed on the
Project. Peregrine believes that gravity could play a key role in
future kimberlite discoveries at Chidliak. A complete summary of the
summer exploration program, including confirmation of additional
kimberlite discoveries, and results from the other geophysical
surveys will be provided after all information from the program has
been evaluated by Peregrine. 
Approximately 470 wet tonnes of CH-6 bulk sample material is now
stored at the De Beers DMS facility in Sudbury, Ontario. De Beers
will commence processing approximately 250 wet tonnes of this
material in late September, monitored by a Qualified Person
designated by Peregrine. Final diamond recovery at the SRC, which
will also be monitored by a Qualified Person designated by Peregrine,
will commence after De Beers provides Peregrine notice of their
decision regarding their right to enter into an earn-in and joint
venture agreement for Chidliak. Final results, including independent
diamond valuations, are expected early in the second quarter of 2014.
Peregrine's objective is to utilize these results, together with
geologic and diamond content information acquired from core drill
programs in 2009, 2010 and 2011, to develop a preliminary revenue
model and establish an intial resource for CH-6. The remainder of the
bulk sample will be processed at a later date. The DMS processing and
diamond recovery costs for the 250 tonne sample will be credited to
De Beers' earn-in should they exercise their option to enter into a
joint venture with Peregrine for Chidliak. In the event De Beers
elects not to exercise their option, Peregrine is not required to
reimburse them for these costs.  
In order to optimize the flow sheet for DMS processing of the CH-6
bulk sample, ten wet tonnes of kimberlite material were processed by
DMS at the SRC in July. Howard Coopersmith, Peregrine's external
Qualified Person for sample processing and diamond recovery stated,
"The CH-6 sample material processed very well and we expect no
processing problems and optimum diamond liberation". The concentrate
that resulted from the processing of this sample is securely stored
at the SRC and will be combined with the concentrate that will be
produced at the De Beers DMS facility in Sudbury from the initial 250
tonne sample. All the concentrate will undergo final diamond recovery
at the SRC which will be monitored by Peregrine. 
Mr. Alan O'Connor, Professional Geologist, Peregrine's Chidliak
Project Manager, is a Qualified Person under National Instrument
43-101 and is responsible for the design and conduct of the programs
carried out by the Company at Chidliak, including the collection of
the CH-6 bulk sample. Mr. Howard Coopersmith, an independent
consultant to the diamond industry, is Peregrine's external Qualified
Person for sample processing and diamond recovery. 
Messrs. O'Connor and Coopersmith have reviewed this release and
approve of its contents. 
Peregrine is a diamond exploration and development company focused on
Canada's North. The Company has discovered two new diamond districts
in Nunavut, Nanuq in 2007 and Chidliak in 2008. At its 100
percent-owned Chidliak project, located 120 kilometres from Iqaluit,
the capital of Nunavut, 64 kimberlites have been discovered to date,
and Peregrine collected a bulk sample weighing 508 wet tonnes from
the CH-6 kimberlite in 2013. A 14.11 tonne sample of drill core
acquired from CH-6 in 2010 returned a grade of 2.84 carats per tonne.
The Project is subject to an option agreement with De Beers whereby
De Beers has the exclusive right until December 31, 2013 to enter
into an earn-in and joint venture agreement for Chidliak on a 50.1
percent De Beers / 49.9 percent Peregrine, basis. At its 72
percent-owned, nine hectare DO-27 kimberlite in the Northwest
Territories, located 27 kilometres from the Diavik Diamond Mine, a NI
43-101 compliant mineral resource of 18.2 million carats of diamonds
in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per
tonne, which is open at depth, was confirmed in 2008. Peregrine also
continues to evaluate earlier stage diamond exploration projects it
controls in Nunavut and the Northwest Territories and through
comprehensive evaluation of its extensive and proprietary diamond
exploration databases, is working towards discovering new diamond
districts in North America. A key asset being utilized in Peregrine's
search for a new Canadian diamond district is a proprietary database
acquired from BHP Billiton that contains data from approximately
38,000 kimberlite indicator mineral samples covering an area of
Canada of approximately three million square kilometres. 
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
exercise of the option to joint venture by De Beers, 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 exercise of the option to joint venture by De Beers,
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,
operational and infrastructure risk 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.
Peregrine Diamonds Ltd.
Mr. Eric Friedland
Peregrine Diamonds Ltd.
Mr. Brooke Clements
Peregrine Diamonds Ltd.
Mr. Tom Peregoodoff
Executive VP, Business Development
Peregrine Diamonds Ltd.
Investor Relations
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