Diamonds in core buoy hopes at Tli Kwi Cho

Vancouver – The recovery of diamonds in core drilling by Peregrine Diamonds (PGD-V) has raised hopes that the main vent of the DO-27 kimberlite may grade better than the projected target of 1 carat per tonne.

D0-27 is the main southern lobe of Tli Kwi Cho, a 9-hectare pipe at the WO diamond project in the Lac de Gras region of Canada’s Northwest Territories. The northwestern lobe located some 200 to 400 metres distant is called DO-18.

Peregrine says recent drilling returned diamonds with weights of 0.42, 0.22, 0.12 and 0.11 carats from NQ diameter-drill core. The company also notes that results returned “consistent micro-diamond values” that indicate the main vent may grade better than previously indicated.

The company is particularly encouraged by the presence of large diamonds, up to 0.42 carats, in micro-diamond samples collected from relatively small-diameter (47 mm) core holes.

Last year the company carried out a 151-tonne, mini-bulk-sample that revealed an average grade of 0.98 carats per tonne from five of six holes drilled. The sixth hole returned an average of 0.7 carats. For comparison purposes, the nearby Ekati mine hosted five pipes with an average grade of 1.09 carats at the feasibility stage.

Peregrine holds a 54.47% interest in the WO property and is carrying out a two-phase drilling program, with the first-phase aimed at collecting geological and technical information in advance of a large-diameter, bulk-sampling program.

The remaining interests in the project are held by various underlying owners, including DHK Diamonds, a private company.

The DO-27 pipe was previously tested by a senior company that carried out a $10-million underground bulk-sampling program in the 1990s, with disappointing results. Peregrine and its partners believe this program did not test the main vent of the pipe, or adequately determine the best areas to sample in advance of the program.

Peregrine is encouraged by results from core-drilling and hopes to confirm its grade projections (based on micro-diamond analysis) by the large bulk-sampling program, scheduled to begin shortly.