Peregrine unearths four more kimberlites near Iqaluit

Peregrine Diamonds Ltd. reported yesterday that they’ve discovered four more kimberlite deposits at their Chidliak exploration site, which lies more than 60 km north-east of Iqaluit on the Hall Peninsula, inland from Cumberland Sound.

The discoveries, which result from a $9.2 million exploration program the company launched earlier this year, mean that Peregrine has now found a total of six kimberlite occurrences in the area.

Kimberlite is a mineral that often contains diamonds, and usually occurs in big funnel-shaped structures called pipes. Only about one in 100 kimberlites turn out to be commercially viable.

Peregrine’s most promising discovery is a kimberlite structure called “CH-1.”

The company says they’ve started collecting a 50-tonne mini-bulk sample from CH-1.

Last November, the company reported that a 2.28-tonne sample of rock taken from CH-1 revealed a diamond content of 1.56 carats per tonne, a grade found in some commercially viable mines.

That sample also contained one two-carat gem quality diamond and a variety of smaller diamonds.

The company claims the deposit’s proximity to Iqaluit and other tidewater locations makes it easy to supply.

Right now, the company is using Twin Otters, a DC-3 and a helicopter to fly people and equipment into two 24-person camps set up on the Chidliak property.

They also transported a Caterpillar loader to the site this past May by using Bombardier Sno-Cats to drag it on a sled overland from Iqaluit.

Peregrine enjoys a close relationship with the Australian mining giant BHP Billiton, operator of the Ekati mine in the Northwest Territories.

Under their deal, BHP can earn a controlling interest in Chidliak by giving Peregrine $22.3 million to explore the site over five years.

And BHP can earn a 58 per cent interest by doing and paying for a feasibility study for a mine.