Peregrine Diamonds Completes Reverse-circulation Drilling at Chidliak

Peregrine Diamonds Ltd. (TSX:PGD) announced that it’s completed the large-diameter, reverse-circulation drilling portion of the 2015 diamond resource development program taking place at its Chidliak project in Nunavut.

Due to weather conditions, the company was unable to drill at the CH-6 and CH-44 kimberlites. However, there is a summer drill program planned for the former, while a program for the latter is set for 2016.

As quoted in the press release:

During the winter program, six large diameter RC holes totalling 1,212.1 metres were drilled into the CH-7 kimberlite resulting in the collection of 558.5 wet tonnes of kimberlite after screening to +1.18 mm in the field.

The data acquired from the bulk sample will be used to establish the grade of the different geologic units at CH-7, and the resulting representative diamond parcels will be the subject of an independent diamond valuation. If results warrant, Peregrine will use this information, together with previously acquired geologic and diamond data, to prepare a maiden resource statement for CH-7. That resource would be included in a Preliminary Economic Assessment (‘PEA’) scheduled for the first half of 2016 for a potential Phase 1 mine development at Chidliak.

Tom Peregoodoff, president and CEO of Peregrine, commented:

The successful collection of the bulk sample from the CH-7 kimberlite will enable Peregrine to determine the grade and diamond value and this information would be used to declare an Inferred Resource for this kimberlite. We believe that a PEA based on Inferred Resources at CH-6 and CH-7 will demonstrate that there is potential for Chidliak to be developed into Baffin Island’s first diamond mine. CH-6 is one of the highest grade kimberlites in the world with an Inferred Resource of 8.57 million carats in 3.32 million tonnes of kimberlite. With an actual diamond value of US$213 per carat based on a 1,013 carat parcel of diamonds, this pipe alone has tremendous potential for development. The winter of 2015 was difficult for operations, and credit should be given to the Peregrine team and its contractors for completing this year’s bulk sample program under challenging weather conditions.

Click here to read the full Peregrine Diamonds Ltd. (TSX:PGD) press release.