DIAMOND EXPLORATION: $17.7-M to be spent at Chidliak

NUNAVUT - Joint venture partners Peregrine Diamonds (49% and operator) of Vancouver and BHP Billiton (51%) of Australia have approved the spending of $17.7 million at their Chidliak diamond project 120 km northeast of Iqaluit on Baffin Island.

The 2011 program will focus on discovering large kimberlites using new targeting information develop last year. Core drilling and/or mini-bulk sampling is planned for known kimberlites with economic potential. Peregrine expects bulk samples will be collected in 2012.

Field work has begun at Chidliak with the construction of a third exploration camp and the initiation of ground and airborne geophysical surveying. Drilling of lake-based targets in the northern portion of the project is to begin this week. In April and May, a second core drill and an RC rig will be used to test targets in the central portion of Chidliak.

Further information, maps and an extensive photo gallery are available at www.PDiam.com.