New preliminary economic assessment from Peregrine Diamonds for Chidliak

23 May 2018

Peregrine Diamonds Ltd. is very pleased to announce the positive outcome of an updated independent Preliminary Economic Assessment (“PEA”) for the Chidliak Phase One Diamond Development incorporating the 2018 expanded diamond resource at the CH-6 and CH-7 kimberlite pipes on the company’s 100%-owned Chidliak Diamond Project on Baffin Island, Nunavut, Canada. The updated PEA highlights that the CP1D represents a robust, high margin, open-pit mining project with very attractive economics. 
At Chidliak, the company has discovered 74 kimberlites to date, with eight having been identified as potentially economic through drilling and microdiamond analysis, while other kimberlite pipes require additional work to determine their economic potential. The company owns all of the diamond marketing and sales rights and there are no non-government royalties or other encumbrances on diamond production. 
The updated PEA the Company is announcing today utilizes the expanded Chidliak Inferred Mineral Resource that was announced on February 15, 2018. Highlights of this expanded resource include: 

  • CH-6 Inferred Mineral Resource of 17.96 million carats in 7.46 million tonnes to 525 metres below surface (“mbs”) at an average grade of 2.41 carats per tonne (“cpt”) or 241 carats per hundred tonnes (“cpht”);
  • Inferred Mineral Resource tonnage at CH-6 increased 61% from 4.64 million to 7.46 million tonnes;
  • CH-6 contained carats increased by 58% from 11.39 million to 17.96 million carats; 
  • High-grade KIM-L domain with a grade of 4.49 cpt (449 cpht) now comprises 17% by volume of the updated CH-6 resource; and
  • Total Phase One Diamond Development Inferred Mineral Resource at CH-6 and CH-7 now exceeds 22 million carats.