Peregrine finds diamondiferous pipes at Nunuq

Vancouver — A little arctic sparkle has boosted shares of Peregrine Diamonds (PGD-T) after drilling on its Nanuq project, in Nunavut, turned up a trio of diamondiferous kimberlite pipes.

Targeting three distinct magnetic geophysical anomalies, the company looks to be batting a thousand after discovering three kimberlite pipes (named Naturalik, Kayuu and Tudlik) about 300 km north of Rankin Inlet. A dozen core holes totalling 2,500 metres returned kimberlite intercepts ranging from 59-248 metres.

Just over 705 kg of kimberlite sampled from Naturalik (which means “Eagle” in Inuktitut) yielded 314 microdiamonds. Peregrine estimates the pipe’s size at more than 7 hectares in area and describes it as a multiphase body in-filled by two magmatic kimberlite units and a variably fragmented volcaniclastic kimberlite unit.

A 524-kg sample from Kayuu (meaning “Hawk”) returned 393 microdiamonds, including one larger than the 1.18-mmm sieve. About five hectares in area, it is a complex pipe in-filled by six volcaniclastic kimberlites and one variable kimberlite unit with some magmatic characteristics. Another 314 kg of kimberlite from the pipe is still being processed with results expected soon.

Cut by a single drill hole, Tudlik (or “Sandpiper”) is estimated to be less than 1 km in size. Recovered material was logged as massive, fine-grained volcaniclastic kimberlite sparse in mantle indicator minerals and xenoliths.

Situated in the Western Churchill province — the Nanuq project covers an area of Archean granites and gneisses, and is located on the major crustal Keewatin arch. Additionally, the Wager Bay shear zone (a major crustal break) intersects the arch in the project area.

The company plans to resume drilling on the project next year with at least 10 additional magnetic anomalies to test.

Peregrine has been focused on its flagship DO-27 kimberlite at the WO diamond project, located about 300 km north-northeast of Yellowknife, in the Northwest Territories. A recent bulk-sampling program from the main lobe at the 9-hectare pipe confirmed an earlier modelled grade of about 0.9 carat per tonne.

The 2007 bulk-sample program recovered just over 1,724 carats of diamonds from about 2,520 dry tonnes of kimberlite. The average stone size was 0.09 carat, although the 20 largest diamonds in the batch ranged from about 2.5-9.45 carats. The diamonds have been sent for valuation.

Peregrine shares closed up more than 50% in recent trading at $1.15 apiece. The diamond explorer’s stock has traded in a 52-week range of 74-$2.60.