Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – June 22, 2011) – Peregrine Diamonds Ltd. (“Peregrine” or “the Company”) (TSX:PGD) is pleased to report the discovery by drilling of three new kimberlites, CH-56, CH-57 and CH-58, on the Chidliak project (“Chidliak” or “the Project”). Chidliak is located on southern Baffin Island approximately 100 kilometres northeast of Iqaluit, the capital of Nunavut, Canada. The company has drilled 15 targets and discovered eight kimberlites since April of this year, a success rate of 53 percent. To date, 35 of the 58 kimberlites that have been discovered at Chidliak have been tested for diamonds and seven of these have economic diamond mining potential in Arctic settings. In addition to the three new discoveries, a second core hole has been drilled into the CH-55 kimberlite, the discovery of which was reported on June 2, 2011. Currently one core rig has commenced drilling on kimberlite CH-31 and the other core rig on kimberlite CH-33. The reverse circulation rig will continue drilling priority targets.
Drill core obtained this year from the CH-55, CH-56 and CH-58 kimberlites and reverse circulation drill cuttings from the CH-57 kimberlite will be analyzed for diamonds by caustic fusion at the Saskatchewan Research Council Geoanalytical Laboratories. Results of the analyses are expected in the third quarter.
| DRILL HOLE DATA FROM THE CH-55, CH-56, CH-57 and CH-58 KIMBERLITES |
The CH-56 kimberlite is located approximately 1.6 kilometres southwest of Sunrise camp under a lake, and has an estimated surface expression of one hectare based on the interpretation of ground geophysics and the drill intersection. The CH-57 kimberlite is located nine kilometres east of Sunrise camp and has an estimated surface expression of 1.5 hectares based on ground geophysical data. The CH-58 kimberlite is located approximately 20 kilometres north of the CH-6 kimberlite and 300 metres south of the CH-55 kimberlite. CH-55 and CH-58 are each estimated to be over 0.5 hectares in size based on geophysical and drill data.
A location map and photographs of the new kimberlite discoveries are available at www.pdiam.com/i/pdf/Chidliak388.pdf.
Chidliak is a joint venture between Peregrine (49%) and BHP Billiton (51%). Peregrine is the operator of the 2011 program.
Mr. Peter Holmes, P. Geo., Peregrine’s Vice President, Exploration, is a Qualified Person under NI 43-101 and is responsible for the design and conduct of the programs carried out by the Company at Chidliak. Mr. Holmes has reviewed this release and approves of its contents.
