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Peregrine starts summer work
Company plans to spend $3.75 million; Weather affects latest bulk sample delivery

Karen K. Ho
Northern News Services
Monday, August 3, 2015

Peregrine Diamonds Ltd. has recently started work on its estimated $3.75 million summer diamond resource development program and environmental baseline studies at its Chidliak diamond project located 120 kilometres northeast of Iqaluit.

NNSL photo/graphic

Amie Nashalik prepares a sample bag from the CH-6 kimberlite bulk sample as part of the Chidliak project in April 2014. - photo courtesy of Peregrine Diamonds Ltd.

According to a news release, the summer work program will involved drilling 1,200 metres of new core samples. The company said those results, along with the results of its bulk sample - which the company is currently waiting on - will be used by Peregrine to update its inferred resource estimates for its CH-6 and CH-7 sites, which will then be included in a planned preliminary economic assessment on a potential diamond mine.

"We are really excited about seeing the results of our second bulk sample," company president and chief executive officer Tom Peregoodoff told Nunavut News/North.

"It's a really important step for the company."

The company said the preliminary economic assessment is expected to be completed and released in the second quarter of 2016.

A recently completed independent review by Mineral Services Canada Inc. has also highlighted a resource expansion opportunity totalling approximately one million tonnes of kimberlite - the rock in which diamonds are sometimes found - at the CH-6 site.

Weather impacts operations

However, transportation of the company's recent bulk sample to the Saskatchewan Research Council for analysis was affected by recent weather conditions Iqaluit, said Peregoodoff.

"We've lost about a week to 10 days ... simply because the ice conditions wouldn't allow the sealift into Frobisher Bay," he said.

However, he said transportation of a portion of the sample is set to take place the week of Aug. 3.

Peregoodoff said the transportation of the bulk sample was split into multiple deliveries for risk management.

"If anything was to go wrong in that sealift we lose the entire bulk sample."

Part of the planned summer 2015 work program includes collecting approximately 700 kilograms of samples from six previously drilled core holes. The company said this work is currently in progress and will utilize drill core already stored at the Chidliak project site.

Approximately 20 to 25 people will be employed at the camp - a combination of drill crews and support staff said Peregoodoff. He added drilling started a depth of 90 metres on July 27.

Director resigns

Peregrine Diamonds Ltd. also recently announced Gordon Keep had resigned from its board of directors.

According to the news release, Keep, who had been a director of the company since it went public in 2005, had resigned due to increased professional commitments.

The company's board now consists of six members: Peregrine's executive chairman Eric Friedland, Robert Boyd, Alan Carter, Richard Cohen, Myron Goldstein and Peter Meredith.

At the press time, shares of Peregrine (TSX: PGD) closed at 19 cents, unchanged from the previous day.

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