Peregrine finds three diamondiferous pipes

Vancouver – A little arctic sparkle has boosted the shares of Peregrine Diamonds (PGD-T) after drilling on its Nanuq project in Nunavut turned up a trio of diamondiferous kimberlites 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 totaling 2,500 metres returned kimberlite intercepts ranging from 59-248 metres.

Just over 705 kg of kimberlite sampled from Naturalik (that translates to Eagle in Inuktitut) yielded 314 micro-diamonds. Peregrine estimates the pipe at more than seven 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 (Hawk in the local language) returned 393 micro-diamonds including one larger than the 1.18-mmm sieve. About five hectares in size, it is a complex pipe in-filled by six volcaniclastic kimberlites and one variable kimberlite unit with some magmatic characteristics. A further 314 kg of kimberlite from the pipe is still being processed with results expected within weeks.

Cut by only a single drill hole, Tudlik (Sandpiper in Inuktitut) is estimated to be less than one 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 ten 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-ha pipe confirmed an earlier modeled 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. Average stone size was 0.09 carat although the twenty largest diamonds in the batch ranged from about 2.5-9.45 carats. The diamonds have been sent for valuation.

Shares of Peregrine closed up over 50% in November 22nd trading, posting a gain of 40 to $1.15 apiece. The diamond explorers stock has a 52-week trading range of 74-$2.60.