Yellowknife (Sep 27/06) - The push to find more stones is on for Peregrine Diamonds.

Bulk sample results from 2006 from Peregrine's WO Diamond Project are helping to spur plans for more drilling during the coming winter months.

The project's main focus, the DO-27 kimberlite pipe, shows results which are three times the size of 2005 estimates, said Eric Friedland president and chief executive officer.

Processing from the main lobe of the D0-27 pipe resulted in an average of 0.88 carats per tonne, according to the company.

The shape of the main D0-27 pipe is also promising, said Friedland.

"The shape is becoming more cylindrical," rather than the cone shape experts previous envisioned, he said. "We are adding tonnes."

Along with the main pipe, the northeastern DO-27 also showed unexpected results, he said.

A 1993 bulk sample of that pipe showed a 0.36 carat per tonne sample, but Peregrine's 2006 sample tested at 0.85 carats per tonne, he said.

Drilling work ongoing

Two drilling rigs are on the WO property and overall exploration and drilling from now to June of next year is being budgeted at $19 million, he said.

Extended drilling will occur at the main and northeastern DO-27 pipes, he said.

Up to 49 workers are expected to be employed during peak operating times in January to April of 2007, said Friedland. Along with the D0-27 property, more pilot drill holes will be carried out between DO-27 and Peregrine's DO-18 pipe, he said.

"The area between DO-27 and DO-18 is quite intriguing," he said.

The positive result from Peregrine's 2006 bulk sample is encouraging news for other exploration companies throughout the NWT, said Mike Vaydik, general manager of the NWT and Nunavut Chamber of Mines.

"There's always hope that someone missed something," said Vaydik.

With such a feverish rush for discoveries in the mid-90s, some exploration companies may be taking a second look at certain properties, he said.

"Hope can spring eternal," Vaydik said.