Peregrine Completes Botswana Transaction and Commences 2015 Botswana Exploration Program
Peregrine Diamonds Ltd. (“Peregrine” or the “Company”) (TSX:PGD) is pleased to announce the completion of the transaction previously announced on March 30, 2015 to acquire all of the shares of Diamexstrat Botswana (Proprietary) Ltd. (“DES Botswana”), a privately held Botswana-registered diamond exploration and development company, from Diamond Exploration Strategies Limited, a UK registered private company (“DES UK”). DES Botswana’s primary assets are eight prospective diamond Prospecting Licences that cover 5,746 km2 in Botswana. The planned 2015 Botswana diamond exploration program includes drill testing of four priority kimberlite targets.
Tom Peregoodoff, President and CEO commented “Working with the principals of DES Botswana, Peregrine has put together a cost-effective and focused exploration program for 2015. Peregrine’s VP, Technical Services, Dr. Grütter and the DES Botswana team have done a tremendous job in using our extensive and proprietary Botswana database to identify high priority targets in this mature diamond-producing terrain. The work program will commence in July and the drilling is expected to commence in September.”
The transaction announced on March 30, 2015 between Peregrine and DES UK calls for the transfer of ownership of DES Botswana and all of its assets to Peregrine in consideration for the grant by Peregrine of a 1% gross overriding royalty (the “Royalty”) to DES UK on all precious stone mineral interests held at the time of closing and those which may be acquired in the future in specific target areas. The agreement allows for Peregrine to purchase the Royalty at various milestones as detailed on March 30, 2015.
All conditions of the agreement have now been met, including receipt of all government approvals, and the transaction has closed.
2015 Diamond Exploration Program
The planned 2015 diamond exploration program will focus on target drilling, further target generation and ground truthing. The program is expected to commence in mid-July and continue until late November. The total budget for the 2015 work program is approximately CDN$300,000.
Target testing via rotary air blast (“RAB”) drilling will focus on the Moralane license. This license covers 664 km2 and hosts a compelling kimberlite indicator mineral (“KIM”) anomaly with associated isolated magnetic anomalies. Microprobe-confirmed KIM compositions define a unique, diamond-compatible signature that cannot be matched to indicators from known kimberlite clusters in the region. Previous operators in the area focused their drilling on the highest indicator mineral counts and did not have the benefit of incorporating the now available regional aeromagnetic data. Approximately 300 line kilometres of high resolution ground magnetics will be acquired and the results will be used to identify and prioritize drill collar locations. Approximately 500 metres of RAB drilling is planned to test four KIM-supported magnetic anomalies. The total budget for this component of the work program is approximately CDN$200,000.
Target generation will focus on two areas.
- The Gope area, which hosts the recently commissioned Ghaghoo mine operated by GEM Diamonds; and
- The Nata area, which lies along a prolific Cretaceous kimberlite emplacement corridor that includes the producing Ghaghoo, Orapa, Lethlakane, Karowe and Damtshaa diamond mines, and numerous other diamond-bearing kimberlites.
At Gope, Peregrine holds two licences covering 1,001 km2. In 2004 a detailed, low level aeromagnetic survey was flown. It identified numerous priority targets to the north of the known Gope kimberlites. These targets have never been drill tested. The Peregrine work program will include detailed re-interpretation of the airborne magnetic data, ground magnetics to confirm the position of priority one anomalies and target scale KIM surveys to assist in target prioritization. Drill testing of priority targets is planned for 2016.
At Nata, Peregrine holds four licences covering 3,830 km2. Regional airborne geophysics has highlighted a number of areas that warrant follow up. Work in 2015 will consist of ground checking a number of the airborne magnetic anomalies as well as limited orientation style KIM sampling.
The total budget for the target generation component of the program is approximately CDN$100,000.
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