(IDEX Online News) – Peregrine Diamonds Ltd. says it has successfully completed the CH-6 kimberlite bulk sample program its 100 percent-owned Chidliak project on Baffin Island, Canada.

 

Peregrine exceeded its CH-6 bulk sample objective of 200 tonnes with a total of 508 wet tonnes of kimberlite collected. The increased size of the bulk sample is expected to deliver a larger parcel of rough diamonds which will provide higher confidence in future diamond valuations.

 

The bulk sample will be shipped this summer and is scheduled to be processed for diamond recovery beginning in the fourth quarter. The bulk sample program was funded and operated by Peregrine.

 

Field operations at Chidliak will resume in June with the start of the summer program, which, as previously reported is budgeted at approximately $2.0 million, and will be funded and operated by De Beers Canada Inc.

 

The Project is subject to an option agreement with De Beers whereby De Beers has the exclusive right until December 31 to enter into an earn-in and joint venture agreement for Chidliak on a 50.1 percent De Beers / 49.9 percent Peregrine, basis.

 

The eight week summer program will focus on new target generation and orientation activities through ground geophysics, geologic mapping and prospecting. In addition to the summer field program, De Beers is finalizing the comprehensive mining options study and the kimberlite pipe characterization studies.

 

Total expenditures by De Beers to date on technical studies, field costs, a reimbursement of a BHP Billiton installment payment regarding Chidliak, and De Beers' private placement in Peregrine, amount to $6.3 million. De Beers' expenditures will be applied to their earn-in obligation of $58.5 million should they enter into the earn-in and joint venture agreement with Peregrine. In the event De Beers does not choose to enter into the joint venture, Peregrine will have no obligation to refund any of these expenditures.