Category: Diamonds

Peregrine Discovers Diamonds in Two More Kimberlites at Chidliak, Baffin Island

New Result From CH-1 Kimberlite Supports Coarse Diamond Size Distribution

Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX: PGD) is pleased to report the discovery of diamonds in the CH-2 and CH-3 kimberlites, and a new diamond result from the CH-1 kimberlite that exhibits a coarse diamond size distribution. The CH-1, CH-2 and CH-3 kimberlites are located on the 9,800 square kilometre Chidliak property ("Chidliak"), Baffin Island, Nunavut, Canada, 150 kilometres northeast of Iqaluit, capital of Nunavut.

A 356.6 kilogram surface sample from CH-2 yielded 372 diamonds larger than the 0.075 mm sieve size including three diamonds larger than the 0.600 mm sieve size. A 253.7 kilogram surface sample from CH-3 yielded 189 diamonds larger than the 0.075 mm sieve size.

An additional 94.0 kg surface sample collected from the CH-1C unit of the CH-1 kimberlite yielded 184 diamonds larger than the 0.075 sieve size including 15 diamonds larger than the 0.600 mm sieve size.

Highlights of the 2008 Chidliak exploration program completed in September, 2008 include the discovery of three diamondiferous kimberlites, the collection of surface samples from these kimberlites including a two tonne sample from CH-1, the collection of 182 heavy mineral samples and the completion of an 11,700 line kilometre airborne geophysical survey.

The following table summarizes caustic fusion diamond results to date for the CH-1, CH-2 and CH-3 kimberlites. The CH-1A, CH-1B and CH-1C samples were collected from what is interpreted to be three different phases of the CH-1 kimberlite. The analyses were performed at the Saskatchewan Research Council Geoanalytical Laboratories ("SRC"). Results from the additional two tonne sample collected from CH-1 are expected in November, 2008.

                  Numbers of Diamonds According to Sieve Size Fraction (mm)
          Sample  --------------------------------------------------------
          Weight    +0.075  +0.106  +0.150  +0.212  +0.300  +0.425  +0.600
Sample       (kg)   -0.106  -0.150  -0.212  -0.300  -0.425  -0.600  -0.850
CH-1A(1)   100.0         9      11       9       9       2       2       2
CH-1B(1)    94.9        34      37      28      19      13       5       4
CH-1C       94.0        51      32      33      27      11      15       8
CH-2       356.6       249     101      15       3       1       0       2
CH-3       253.7        79      60      27      11      11       1       0
(1) Results first reported on August 25, 2008.
                  Numbers of Diamonds
                   According to Sieve Size
                   Fraction (mm)
          Sample  --------------------------------------------------------
          Weight    +0.850  +1.180  +1.700     Total          Total Carats
Sample       (kg)   -1.180  -1.700  -2.221  Diamonds  greater than 0.820mm
CH-1A(1)   100.0         0       0       0        44
CH-1B(1)    94.9         2       2       2       146                 0.157
CH-1C       94.0         5       2       0       184                 0.101
CH-2       356.6         0       1       0       372                 0.029
CH-3       253.7         0       0       0       189
(1) Results first reported on August 25, 2008.

The diamond results from the CH-1, CH-2 and CH-3 kimberlites confirm that all three are significantly diamond-bearing. The CH-1 results indicate excellent potential for a population of commercial size diamonds. With geophysical surface expressions estimated at six, three and two hectares respectively, CH-1, CH-2 and CH-3 need to be evaluated by drilling and more kimberlite sampling to accurately determine the geology, volume and diamond content of the different kimberlite phases. The evaluation of exploration data generated thus far from Chidliak, has resulted in the discovery of over 170 kimberlite-type geophysical anomalies, many with signatures similar to that of the CH-1 kimberlite. This supports the likelihood that additional diamond-bearing kimberlites with large tonnage potential will be discovered in 2009.

Brooke Clements, President of Peregrine, stated, "These results are a spectacular start in the evaluation of this new Canadian diamond district. A lot of progress has been made since the initial discovery in late July of this year, but we have literally only scratched the surface at Chidliak. In addition to the highly encouraging diamond results thus far from the surface of the three known kimberlites, we have identified high priority kimberlite indicator mineral trains and many associated kimberlite-type geophysical anomalies along a 50 kilometre trend. The next step is to proceed with a more thorough examination of CH-1, CH-2 and CH-3 and begin a systematic evaluation of all the anomalies on the property."

Details on diamond results and characteristics of the CH-1, CH-2 and CH-3 Kimberlites

The two largest diamonds in the 100.0 kilogram sample of CH-1A were colourless/white fragments measuring 1.66 x 0.78 x 0.46 mm and 1.66 x 0.82 x 0.60 mm respectively. The three largest diamonds in the 94.9 kilogram sample of CH-1B were a colourless/white macle, a colourless/white fragment and a colourless/white aggregate measuring 2.20 x 2.06 x 0.66 mm, 3.28 x 2.42 x 0.56 mm and 1.70 x 1.56 x 1.34 mm respectively. Thirty one of the 34 diamonds from CH-1A and CH-1B larger than the 0.300 mm sieve size were classified as colourless/white. The largest three diamonds recovered from the 94.0 kilogram sample of CH-1C were described by SRC as off-white, transparent fragments measuring 1.26 x 1.20 x 1.04 mm and 2.24 x 1.62 x 1.06 mm respectively and an off-white, transparent octahedron measuring 1.48 x 1.00 x 0.90 mm. Twenty two of the 41 diamonds larger than the 0.300 mm sieve size from CH-1C were classified as having a colourless/white colour, 16 were described as off-white, two were grey and one was yellow.

The largest two diamonds recovered from the 356.6 kilogram sample of CH-2 were described by SRC as colourless/white fragments measuring 1.96 x 1.60 x 1.34 mm, and 1.00 x 0.90 x 0.72 mm respectively. The remaining two diamonds larger than the 0.300 sieve size were described as off-white and yellow.

The largest diamond recovered from the 253.7 kilogram sample of CH-3 was described by SRC as a white, transparent tetrahexahedron measuring 0.54 x 0.48 x 0.46 mm. Five of the 12 diamonds larger than the 0.300 mm sieve size from CH-3 were classified as having a colourless/white colour; the remaining seven were described as off-white.

The discovery of the CH-1 kimberlite was reported on July 23, 2008. Based on the size of the geophysical anomaly, and the distribution of kimberlite material on the surface, the CH-1 kimberlite is estimated at six hectares in size. The CH-1A sample consisted of magmatic kimberlite material collected from an outcrop measuring approximately three metres by five metres; a representative one tonne sample has been collected from this outcrop. The CH-1B sample consisted of magmatic kimberlite boulders and cobbles, with a high concentration of coarse-grained olivine and other kimberlite indicator minerals, collected from the surface in the vicinity of the kimberlite outcrop. Similar material is present over much of the surface of the geophysical anomaly and a representative one tonne sample of this material has been collected. The CH-1C sample was taken approximately 20 metres from the kimberlite outcrop from a collection of boulders of pyroclastic kimberlite material containing limestone fragments. Pyroclastic kimberlite is formed when kimberlite magmas erupt at the earth's surface. The presence of pyroclastic material is often indicative of the presence of a large pipe as it is generally preserved in the upper parts of volcanic craters.

The discovery of the CH-2 kimberlite was reported on August 25, 2008. A kimberlite outcrop was discovered near the edge of an estimated three hectare geophysical anomaly. The 356.6 kilogram kimberlite sample was collected from the outcrop area and from surficial kimberlite material collected over an area representing approximately 75 percent of the anomaly. The sample consists dominantly of magmatic material with subordinate pyroclastic material containing limestone fragments.

The discovery of CH-3 was reported on September 10, 2008. The 253.7 kilogram sample from CH-3 consisted of magmatic kimberlite cobbles and boulders collected over an area of approximately 500 square metres near the edge of an estimated two hectare geophysical anomaly.

Summary of 2008 Exploration Program

Following is a summary of the work completed at Chidliak by the Company in 2008.

- Airborne Geophysical Survey. An 11,700 line kilometre heli-borne magnetic/electromagnetic survey with 100 metre line spacing was completed over priority areas of the property by Fugro Airborne Surveys Inc. Delivery of the final survey data is expected in November. To date over 170 kimberlite-type anomalies have been identified from the preliminary survey data. - Kimberlite Discoveries. Three diamondiferous kimberlites, CH-1, CH-2 and CH-3, estimated from geophysics at being six, three and two hectares in size respectively, were discovered at surface while field checking priority targets selected from the airborne geophysical data.

- Ground Geophysics. Ground magnetometer surveys were completed over four priority anomalies including the CH-1 kimberlite.

- Heavy Mineral Sampling. A total of 182 till samples was collected. These samples have been sent to Overburden Drilling Management in Nepean, Ontario for kimberlite indicator mineral and metamorphic and magmatic massive sulphide indicator mineral analyses.

- Metals Exploration. On February 28, 2008, Peregrine reported the discovery of strong base and precious metals anomalies at Chidliak. A four-person crew completed a programme of prospecting, geologic mapping, ground geophysics and geochemical sampling. A total of 1,343 geochemical samples was collected and 20 rock samples exhibiting mineralization or alteration have been submitted for assay.

Preparations for 2009 Chidliak Exploration Program

Peregrine is currently planning for a 2009 exploration program that would include the following elements: the drilling of new kimberlite targets, definition drilling of the known kimberlites, ground geophysics, heavy mineral sampling, metals exploration and an environmental baseline study. The collection of additional surface samples from the known kimberlites is also under consideration.

Information on the Chidliak property and the CH-1, CH-2 and CH-3 kimberlite discoveries, including maps, photographs and an example of a priority one magnetic anomaly that is a future drill target are available at

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 Chidliak property. Mr. Holmes has reviewed this release and approves of its contents.

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 SRC under strict chain of custody conditions supervised by senior Peregrine personnel.

Forward-Looking Statements: This document includes forward-looking statements. Forward-looking statements include, but are not limited to statements concerning Peregrine's projects and other statements that are not historical facts. When used in this document, the words such as "could", "commonly", "confident", "plan", "encouraging", "estimate", "expect", "anticipated", "intend", "imply", "likely", "may", "potential", "should", "scheduled", "significant", "suggest", and similar expressions are forward-looking statements. Although Peregrine Diamonds Ltd. believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Important factors that could cause actual results to differ from these forward-looking statements are disclosed in the corporation's periodic filings with Canadian regulators.

Contacts: Peregrine Diamonds Ltd. Brooke Clements President (604) 408-8880 Peregrine Diamonds Ltd. Eric Friedland CEO (604) 408-8880 Peregrine Diamonds Ltd. Investor Relations (604) 408-8880 (604) 408-8881 (FAX) Email: This email address is being protected from spambots. You need JavaScript enabled to view it. Website:

SOURCE: Peregrine Diamonds Ltd.

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