PANNIQTUUQ/PANGNIRTUNG - Junior exploration company Peregrine Diamonds has entered the final month of summer exploration at Chidliak, a diamond block located 133 km from Pangnirtung.

From left, Peregrine Diamonds exploration staff members Brooke Clements, Hugo Grenon and Greg Shenton survey a future drill site on the company's Chidliak diamond exploration block, about 133 km from Pangnirtung. Between 15 to 20 Nunavummiut, most of them from Pangnirtung, are assisting Peregrine staff during this summer's $9.2 million exploration effort. - Guy Quenneville/NNSL photo

The company, whose $9.2 million program is being financed by partner BHP Billiton, hopes to come off the land by September 15, said president Peter Holmes.

"At this stage in the exploration, what we're trying to do is identify as many of the prospective kimberlites (diamond-bearing rocks) as possible," said Holmes.

Following last year's expenditure of $1.5 million, this year's program has consisted of drilling on three kimberlites discovered in 2008, additional exploratory drilling, the collection and sampling of a mini-bulk sample, mineral sampling, and the start-up of the baseline environmental study. Since the program started in May, four additional new kimberlites have been discovered - a good sign, but the project still has a long way to go, said Holmes.

A feasibility study for the project is still "some time ...down the road," said Holmes, indicating that only 16 drill holes have been made at this point, placing the project squarely in the category of early exploration.

However, "Based on what we've seen, we've very encouraged," said Holmes.

Fifty people are at work on the project, including 15 to 20 people from Pangnirtung and Iqaluit. In addition to the local help on site, Peregrine has leased a warehouse from Qikiqtaaluk Logistics, which is manned by two Iqaluit residents.

"The warehouse, apart from its storage function, (is being used) to log the drill core in detail and get samples ready to ship to the laboratories," said Holmes.

"One person works to assist the geologist taking geotechnical measurements on the core. The other person works as an expediter. She's actually making up sample shipments. She (handles) samples that come in and she's looking after some of the administrative things, like record-keeping."

The project has also benefited from its proximity to Pangnirtung, added Holmes.

"We're in discussions whenever we go into Pangnirtung with individuals to learn more about what they know of the land," he said.

"Through some conversations ... we've learned (about) traditional use. There are areas we try to avoid at certain times of the year because they are still used by the (people) of Pangnirtung... One of the areas is of particular interest for their char fishing."

"It helps us in our planning," continued Holmes. "If there had to be any kind of development, these would be areas that we would attempt to avoid if we had to bring in any materials overland, for example."

Though Peregrine has not determined the budget for its summer 2010 program, which will begin in April - one month ahead of this year's campaign - the company has ordered 600 drums of oil on the next Iqaluit sealift, said Holmes.