August 14, 2012 – Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to provide an update on the Chidliak diamond project (“Chidliak” or “the Project”) located on Baffin Island, Nunavut, Canada.
During the summer exploration program, a total of 2,378 metres of core drilling was completed on the CH-1, CH-7 and CH-44 kimberlites, bringing the total metres of core drilling completed to date on the three bodies to 1,106, 2,992 and 1,881, respectively. CH-1, CH-7, CH-44 and CH-6 are four kimberlites with economic potential at Chidliak that are at the bulk sample stage of economic evaluation. Between 2009 and 2011, 4,700 metres of core drilling was completed at CH-6. Information from the core drilling will be used to refine the geologic models of these kimberlites and to better establish the diamond size distribution of the various kimberlite units in preparation for future bulk sampling.
In addition, over 720 line-kilometres of ground magnetometer surveys were completed, 131 man-days were devoted to prospecting and mapping and 402 kimberlite indicator mineral samples were collected. A total of 20 overburden profile holes has been drilled at the CH-6 kimberlite with a heli-portable reverse circulation (“RC”) drill and the 2012 field program will conclude after overburden profile holes have been drilled at the CH-7 and CH-31 kimberlites. These overburden profile holes will assist with planning for the potential future collection of bulk samples from these kimberlites by trenching. Approximately 20 kimberlite targets were generated from the 2012 prospecting and ground geophysical surveying programs. Testing of these targets by RC drilling, originally planned for this year, has been deferred to a future program.
BULK SAMPLING PROGRAM
The planned 2013 bulk sampling program is currently postponed. Cooper Drilling LLC is nearing completion of modifications to the large diameter RC drill rig to be used in a future bulk sampling program at Chidliak. Current planning is for the rig to be thoroughly tested, and then stored for use at a later date.
The Company is in active discussions regarding corporate and financing options and will provide further updates.
DISCOVERY OF CH-61
CH-61, located approximately 20 kilometres southeast of the CH-7 kimberlite, is defined by a complex magnetic anomaly with an estimated surface expression of 2.4 hectares. The prospecting crew discovered kimberlite float and green clay soil containing limestone fragments coincident with the anomaly. CH-61 will be evaluated by drilling in a future program.
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. Mr. O’Connor has reviewed this release and approves of its contents.
About Peregrine Diamonds Ltd.
Peregrine Diamonds Ltd. is a diamond exploration and development company focussed on Canada’s North. Peregrine has discovered two new diamond districts in Nunavut, Nanuq in 2007 and Chidliak in 2008. At the 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 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. At its 100%-owned Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut, the Company has discovered 61 kimberlites to date and four of the pipes are currently at the bulk sample stage. Peregrine also continues to evaluate earlier stage diamond exploration projects it controls in Nunavut and the Northwest Territories.
For further information, please contact Mr. Eric Friedland, CEO, Mr. Brooke Clements, President, Mr. Tom Peregoodoff, Executive VP, Business Development, Mr. Mike Westerlund, VP, Investor Relations and Corporate Communications or Peregrine Diamonds Investor Relations, at 604-408-8880 or at email@example.com..