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| September 04, 2014 --- Vol. 08, No. 36 | September 2014
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Nunavut
DIAMONDS – Peregrine Diamonds Ltd. Sept. 2 provided an update on its 2014 field activities and plans to advance its Chidliak diamond project, located 120 kilometers (75 miles) northeast of Iqaluit, the capital of Nunavut. The primary goal of Peregrine’s 2014 and 2015 Chidliak work programs is to confirm a resource base in three kimberlites with economic potential – CH-6, CH-7 and CH-44. This resource could form the foundation of a preliminary economic assessment planned for 2016. This season, a total of 3,305 meters of core drilling was completed at CH-6, CH-7 and CH-44. The drill program was designed to allow conversion of kimberlite tonnage currently classified as a target for further exploration into the inferred resource category upon completion of the 2015 bulk sampling program. A total of 994 meters of small diameter reverse circulation drilling designed to constrain overburden depth and obtain kimberlite contacts at surface has also been completed to date on the three kimberlite bodies. Exploration activities are ongoing and are focused on the southern priority area, where a new kimberlite, CH-68, has been discovered. Preparations for the 2015 bulk sample program are nearing completion and mobilization of the drill rig and ancillary equipment to Iqaluit has begun. Assuming successful closure of the current rights offering, bulk sampling by large diameter RC drilling will begin in 2015 on CH-6, CH-7 and CH-44. The bulk sampling results, together with the work being completed in 2014, will then be used to estimate the tonnage and grade for each of the pipes. A new resource statement for CH-6 would be prepared and if diamond valuation results warrant, maiden resource statements for CH-7 and CH-44 will be prepared. Peregrine Chairman and CEO Eric Friedland said, “Since we received the maiden resource statement at CH-6, Peregrine has been carefully analyzing how to advance Chidliak in the most efficient and effective way possible. Based on this work we have made the strategic decision to focus on proving up resources that will support the delivery of a PEA in 2016. CH-6 potentially has some of the highest rock value in the world for a diamond deposit and that resource, combined with potential resources at CH-7 and CH-44, would provide the basis for the completion of the PEA. In addition, we will continue to evaluate other known kimberlites with economic potential as well as high priority exploration targets.” Core drilling at CH-6 is designed to establish an inferred resource for kimberlite above 250 meters depth. This summer, 1,183 meters in five holes were drilled at CH-6. In addition, 15 small diameter RC holes, totaling 225 meters were completed at CH-6 to better constrain the surface expression of the pipe. Up to six additional RC holes will be drilled prior to the end of this field program. Data from the core and RC drilling, along with new microdiamond analyses will be incorporated into a revised resource statement for CH-6, which is expected in late 2014. A total of 1,128 meters of core drilling in seven holes was completed at CH-7 and 994 meters in six holes was completed at CH-44. A total of 769 meters of small diameter RC drilling in 42 holes was completed at the CH-7 and CH-44 kimberlites. The 2014 drill data will be used to prepare revised tonnage estimates for CH-7 and CH-44 in late 2014. The majority of Peregrine’s new target exploration efforts in 2014 are focused in the southern priority area, an area that includes CH-6, CH-7 and CH-44. Exploration work is underway in two principle areas this summer, the CH-6-String of Pearls area and at CH-46. In addition, one new kimberlite was discovered, CH-68. RC drilling of high priority gravity and magnetic targets proximal to CH-6, and within the String of Pearls structure is planned for early September. These targets are considered a high priority given their immediate proximity to the CH-6 diamond resource. In an effort to confirm the coarse diamond size distribution from RC drilling that was reported in June, three core holes will be drilled into the CH-46 kimberlite pipe to obtain a representative sample for diamond testing and to determine tonnage potential. In August, prospectors working at anomaly CHI-674 discovered abundant kimberlite float at three localities. This new discovery, CH-68, is roughly five kilometers (three miles) east of Discovery camp. A magnetic linear associated with the float occurrences extends for approximately 550 meters. Sufficient float has been collected for a representative microdiamond test. High-interest kimberlite float was discovered in Area B in 2012. Area B is located approximately 15 kilometers east of CH-6 and it remains a high priority exploration area for the company. Due to the focus this season on resource delineation, drilling of geophysical targets in this area has been deferred.
FINANCE – West Melville Metals Inc. Aug. 28 said the second tranche of the non-brokered private placement previously announced on June 27 has been closed. West Melville is a specialty metals exploration company working to advance the Isortoq iron-titanium-vanadium project in Greenland and the Fraser Bay Project in Nunavut. A total of 1.12 million units were issued at a price of C5 cents per unit for gross proceeds to the company of C$56,000. This brings the total for the financing to C$300,000. As previously announced, each unit will consist of one common share and one common share purchase warrant. Each common share purchase warrant may be exercisable into one common share for a period of three years from closing at a price of C15 cents per share, subject to the company’s right to accelerate the exercise of the warrants if the daily volume weighted average trading price of the common shares of the Company on the TSX Venture Exchange is equal to or exceeds C35 cents for a period of 10 consecutive trading days during the term of the warrant, commencing four months after the date the warrants are issued. The securities issued by West Melville in connection with the offering are subject to a four-month hold period as prescribed by the TSX Venture Exchange and applicable securities laws which expires on Dec. 29, 2014. No finders’ fees were paid on this tranche of the financing. The company intends to use the proceeds of the private placement to conduct metallurgical test work on the Isortoq project and for general working capital purposes.
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