NEWS RELEASE TRANSMITTED BY Marketwired
FOR: Peregrine Diamonds Ltd.
TSX SYMBOL: PGD
MARCH 18, 2014
Peregrine Announces Commencement of 2014 Program at Chidliak
VANCOUVER, BRITISH COLUMBIA--(Marketwired - March 18, 2014) - Peregrine
Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is
pleased to announce that the 2014 exploration and diamond resource definition
program at its 100 percent-owned Chidliak diamond project ("Chidliak"
or "the Project"), on Baffin Island, Nunavut, Canada, has commenced.
The primary objective of the 2014 program will be to advance 3 to 5 kimberlites
showing economic potential to the bulk sample stage and to commence logistical
preparations for the 2015 bulk sampling program. The objective of the 2015 bulk
sampling program will be to confirm sufficient diamond resources to enable
commencement of a pre-feasibility study for Baffin Island's first diamond
mine. The approved budget for the 2014 program is $7,000,000.
A bulk sample that was collected from the CH-6 kimberlite in 2013 has confirmed
the economic potential of this kimberlite. Two additional kimberlites, CH-7 and
CH-44, have had sufficient diamond testing to be ready for bulk sampling in
2015. Peregrine plans to advance additional kimberlites to the bulk sample
stage in 2014 by completing a program of core drilling on these pipes. In
addition, thorough exploration will be focused on discovering new kimberlites
with economic potential in a priority area that includes the CH-6, CH-7 and
CH-44 kimberlites. The 2014 program is expected to be completed in September.
BULK SAMPLE PREPARATION
-- Core Drilling. A minimum of 2,500 metres of core drilling will be
completed on key kimberlites including CH-6, CH-7 and CH-44 commencing
in early July. Results from the core drilling, including microdiamond
analyses and geologic models, will be incorporated into the final design
of the 2015 bulk sampling program.
-- Mobilization of Bulk Sample Equipment. A large diameter RC drill rig
specifically designed for Chidliak, and supporting supplies and
equipment is scheduled to be mobilized to Iqaluit by sealift in
September in preparation for 2015 bulk sampling.
-- Heli-portable Reverse Circulation ("RC") Drilling. Grid drilling will be
completed over several kimberlites with economic potential, including
CH-6, CH-7 and CH-44, to accurately map the overburden depth and prepare
for future trenching programs. The RC drilling will commence in April
and will continue through the summer season.
KIMBERLITE TARGET GENERATION AND TESTING
-- Ground geophysics. In preparation for drill testing, ground geophysical
surveys will be completed over priority geophysical anomalies and in
areas with unexplained kimberlite indicator minerals and kimberlite
-- Heli-portable RC Drilling. Commencing in April, high priority kimberlite
targets will be drilled. Priority areas targeted for drilling include
the String of Pearls, just north of CH-6, Area B, located 15 kilometres
east of CH-6 where high-interest kimberlite float has been discovered
and anomaly 645, a two hectare high priority geophysical anomaly located
13 kilometres southwest of CH-6.
-- Core Drilling. A minimum of 1,500m of core drilling of high priority
kimberlite targets will be completed this summer.
-- Prospecting and Heavy Mineral Sampling. Ground truthing and prospecting
is scheduled for approximately 20 targets in the priority area that
includes CH-6, CH-7 and CH-44. In addition, approximately 400 heavy
mineral samples will be collected in high priority areas. Prospecting
and heavy mineral sampling will commence in July.
As reported on February 26, 2014, a 404 tonne bulk sample collected from the
surface of the CH-6 kimberlite in 2013 returned a grade of 2.58 carats per
tonne for commercial-size diamonds larger than the 1.18 mm square mesh sieve
size. An average price of US $213 per carat for a 1,013 carat diamond parcel
was determined by WWW International Diamond Consultants. Peregrine expects to
declare the first resource for CH-6 in the second quarter of 2014. As reported
on November 22, 2010, a 47.2 tonne surface sample collected from CH-7 returned
a grade of 1.04 carats per tonne with the largest diamond being 6.53 carats in
size. As reported on November 21, 2011, initial microdiamond results from CH-44
showed a coarse diamond size distribution. A presentation with details on the
CH-6 bulk sample, new exploration targets and Peregrine's 2014 and 2015
strategy is available at
Dr. Herman Grutter, Professional Geologist and Peregrine's Program
Manager, Chidliak Exploration, is a Qualified Person and is responsible for the
design and conduct of the exploration programs at Chidliak. Mr. Alan
O'Connor, Peregrine's Program Manager, Chidliak Resource Evaluation,
is a Qualified Person and is responsible for the design and conduct of bulk
sampling programs at Chidliak.
Messrs. Grutter and O'Connor have reviewed this release and approved of
ABOUT PEREGRINE DIAMONDS
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, 67
kimberlites have been discovered to date with nine being potentially economic.
In April 2013, Peregrine collected a bulk sample weighing 404 dry tonnes from
the CH-6 kimberlite. The 404 tonne sample returned a grade of 2.58 carats per
tonne for diamonds larger than the 1.18 mm sieve size. An independent diamond
valuation of the resulting 1,013 carat parcel of diamonds returned an average
market price of US$213 per carat and modelled prices that ranged from a minimum
of US$162 per carat to a high of US$236 per carat with a base model price of
US$188 per carat. The 2014 exploration program has commenced and planning is
now underway for an important 2015 resource definition program that will be
designed to advance Chidliak to the feasibility stage.
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
additional 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 approximately three
million square kilometres of Canada.
This news release contains forward-looking statements within the meaning of
Canadian securities legislation. 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 proposed exploration and
development programs, funding availability, anticipated exploration results,
grade of diamonds and tonnage of material, resource estimates, anticipated
diamond valuations 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 made based upon certain assumptions by the
Company and other important factors that, if untrue, could cause the actual
results, performances or achievements of the Company to be materially different
from future results, performances or achievements expressed or implied by such
statements. Such statements and information are based on numerous assumptions
regarding present and future business strategies and the environment in which
the Company will operate in the future, including the price of diamonds,
anticipated costs and ability to achieve goals. Certain important factors that
could cause actual results, performances or achievements to differ materially
from those in the forward-looking statements include, but are not limited to:
receipt of regulatory approvals; anticipated timelines for community
consultations and the impact of those consultations on the regulatory approval
process; market prices for rough diamonds and the potential impact on the
Chidliak Project; and future exploration plans and objectives.
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
availability and cost of funds, timing and content of work programs, results of
exploration activities, interpretation of drilling results and other geological
data, risks relating to variations in the diamond grade and kimberlite
lithologies; variations in rates of recovery and breakage; variations in
diamond valuations and future diamond prices; the state of world diamond
markets, 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 and development 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Mr. Eric Friedland
Mr. Brooke Clements
Mr. Tom Peregoodoff
Executive VP, Business Development
Peregrine Diamonds Investor Relations
INDUSTRY: Manufacturing and Production - Mining and Metals
-0- Mar/18/2014 12:00 GMT
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