MINING NEWS: NORTHERN NEIGHBORS: Impressive results from modest exploration program at Chidliak

Peregrine Diamonds Ltd. April 7 reported that the 2015 exploration program at its Chidliak diamond project in Nunavut has significantly increased the mineral resource for the CH-6 kimberlite pipe. The upper 260 meters of CH-6 now contains 4.64 million metric tons of inferred resource averaging 2.45 carats per metric ton (11.39 million carats) diamonds. This marks a 40 percent increase in tonnage and 33 percent increase in contained diamonds compared to a resource calculated early in 2015. The updated resource includes a newly identified zone estimated to contain 3.15 million carats in 0.76 million metric tons, for an estimated grade of 4.16 carats per metric ton. Additional tonnage classified as a “target for further exploration” of 2.34 to 3.75 million metric tons has also been identified to a depth of 380 meters below surface at CH-6. “When we planned the 2015 resource development program for the CH-6 kimberlite, the challenge was to design a cost effective program that would make a material difference to the Chidliak project,” explained Peregrine President and CEO Tom Peregoodoff. “With a simple two-hole program and additional microdiamond sampling of existing core, we have exceeded the targeted resource expansions we initially envisaged. The 33 percent uplift in the CH-6 diamond resource announced today should have a positive material impact on the outcome of the Preliminary Economic Assessment. Work continues on the maiden inferred mineral resource for the CH-7 kimberlite, and I look forward to its completion in early May and its incorporation into the PEA.” - SHANE LASLEY