PGD-T Peregrine Diamonds Completes Drilling at Sikwane Project, Botswana
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 4, 2016) - Peregrine Diamonds Ltd. ("Peregrine" or "the Company") (TSX:PGD) is pleased to announce that core drilling has been completed on three kimberlites and two exploration targets on its 100% owned Sikwane Project, located in the Kgatleng district, south-eastern Botswana. The drill program successfully intersected the Sikwane kimberlites and has resolved their morphology. Kimberlite material is being collected for future microdiamond analysis. In addition, two new kimberlite targets in the Sikwane area were drill tested. Both targets are explained by magnetic dolerite intrusions.
SIKWANE KIMBERLITE DRILL PROGRAM
Peregrine's Sikwane prospecting licence PL272/2015 covers 453 km2 and contains nine kimberlites discovered through percussion and limited core drilling by De Beers in 1997. This previous work recovered diamonds from surface samples and from down-hole samples at the Sikwane kimberlites, although diamond abundance and size distribution data are not available. Peregrine's recently completed core drill program aimed to constrain geological relationships between kimberlite and country rock granite, and to obtain representative material for microdiamond or kimberlitic indicator mineral (KIM) analysis.
Two separate drill sites were occupied at the Sikwane-01 kimberlite. At drill site #1, three vertical HQ-diameter core holes totalling 49.68 metres were collared within a 3.3 metre horizontal distance from each other, and encountered 5.94 (DD1), 0.85 (DD6) and 0.55 (DD7) metre kimberlite intersects that are interpreted to represent a highly irregular sheet-like kimberlite body intruded at somewhat variable depth within granite. Although clay-altered, the kimberlite retains a fractured, hypabyssal texture.
At drill site #2 on the Sikwane-01 kimberlite, five vertical HQ-diameter core holes totalling 116.07 metres were collared within a 13.6 metre horizontal distance from each other, and encountered 0.20 (DD8), 3.95 (DD9), 8.77 (DD10), 3.10 (DD11) and 3.97 (DD12) metre kimberlite intersects that are interpreted to represent an irregular sill-like kimberlite body intruded within granite. The kimberlite is clay-altered and retains a moderately macrocrystic, hypabyssal texture.
Two narrow kimberlite stringers were intersected in a 38.72 m HQ-diameter vertical hole (DD5) drilled at the known Sikwane-SE occurrence, and another two narrow kimberlite stringers were intersected in a 42.92 m HQ-diameter vertical hole (DD3) drilled at the Sikwane-3 occurrence.
Dr. Herman Grütter, Vice President, Technical Services said "Peregrine's Sikwane drill program has efficiently resolved an irregular hypabyssal intrusive morphology for the drilled Sikwane kimberlites and outlined substantive pinch-and-swell characteristics for kimberlites in the Sikwane cluster as a whole. We are integrating these new data into our exploration models for three contiguous prospecting licenses that we control in the Sikwane region in Botswana and will incorporate the outcomes into future targeting in the region".
SIKWANE GEOPHYSICAL TARGETS
Peregrine has selected twelve kimberlite-like geophysical targets in the western sector of prospecting license PL272/2015 from aeromagnetic data acquired in 1998. Five high-volume soil samples have been collected from each of these targets during June 2016 and are being processed to recover kimberlitic indicator minerals. Two compelling, isolated magnetic targets were also drilled for a total of 90.0 metres. Kimberlite was not intersected in either drill hole with both targets being explained by magnetic dolerite that was intersected at depths of 21 to 36 and 20 to 54 metres respectively.
QUALIFIED PERSON
Dr. Herman Grütter, Peregrine's Vice President, Technical Services, is a Qualified Person and is responsible for the design of Peregrine's exploration programme in Botswana. Dr. Grütter has reviewed this release and approves of its' content.
ABOUT PEREGRINE DIAMONDS
Peregrine is a TSX listed diamond exploration and development company with assets located in northern Canada and Botswana.
Peregrine's core asset is its' 100 percent-owned, 513,249 hectare Chidliak project, located 120 kilometres from Iqaluit, the capital of Nunavut where 71 kimberlites have been discovered to date with eight being potentially economic. A Preliminary Economic Assesment ("PEA") of a Phase 1 Diamond Development ("CP1D") has been completed. The PEA highlights that the CP1D represents a robust, high margin, ten-year, open-pit mining project with very attractive economics, including after tax NPV of C$471M, IRR of 29.8% and a two year payback. An Inferred Mineral Resource of 11.39 million carats in 4.64 million tonnes of kimberlite at an average grade of 2.45 carats per tonne has been defined for a portion of the CH-6 kimberlite. In addition, a Target for Further Exploration ("TFFE") of 2.34 to 3.75 million tonnes of kimberlite to a depth of 380 metres below surface has been identified at CH-6. An independent diamond valuation by WWW International Diamond Consultants, of a 1,013 carat parcel of diamonds from CH-6 returned an average market price of US$213 per carat and modeled prices that range from a minimum of US$162 per carat to a high of US$236 per carat, with a base model price of US$188 per carat (all using the February 24, 2014 price book). An Inferred Mineral Resource of 4.23 million carats in 4.99 million tonnes of kimberlite at an average grade of 0.85 carats per tonne has been defined for a portion of the CH-7 kimberlite. In addition, TFFE of 0.90 to 2.36 million tonnes for a depth range of 240-320 metres has been estimated for the CH-7 kimberlite. An independent diamond valuation by WWW International Diamond Consultants, of a 735.75 carat parcel of diamonds from CH-7 returned an average market price of US$100 per carat and modelled prices that ranged from a minimum of US$94 per carat to a high of US$155 per carat, with a base model price of US$114 per carat (all using the February 1, 2016 price book). A TFFE of 1.27 to 3.19 million tonnes to 250 metres depth has been estimated for the CH-44 kimberlite pipe.
The Chidliak 2016 PEA is preliminary in nature and includes Inferred Mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the PEA will be realized.
The TFFE's identified above are conceptual in nature and are not Mineral Resources. It is uncertain whether further exploration will result in any of these tonnages being delineated as Mineral Resources.
Peregrine holds eleven diamond prospecting licenses in Botswana that cover 661,330 hectares.
Peregrine also controls the 8,493 hectare Lac de Gras project in the Northwest Territories, located approximately 27 kilometres from the Diavik Diamond Mine. The nine hectare 72.1%-owned DO-27 kimberlite, located at Lac de Gras, hosts an Indicated Mineral Resource of 18.2 million carats of diamonds in 19.5 million tonnes of kimberlite at a grade of 0.94 carats per tonne and it is open at depth.
Peregrine will be filing a National Instrument (NI) 43-101 Technical Report on the Chidliak 2016 PEA within 45 days of the July 17, 2016 release.
For information on data verification, exploration information and resource estimation procedures see the NI 43-101 technical reports entitled "Mineral Resource Estimate for the Chidliak Project, Baffin Island, Nunavut" and dated effective June 3, 2016 which is available on SEDAR and the company's website.
For further information, please visit www.pdiam.com.
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