Preliminary Economic Assessment Underway with Drilling by Four Core Rigs
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2010) - Peregrine Metals Ltd. (TSX:PGM) ("Peregrine" or "the Company") is pleased to provide a description of the Altar porphyry copper-gold project ("Altar") in San Juan Province, Argentina and an update on current drilling activities. Following are some of the key features of the project:
* An independent National Instrument ("NI") 43-101 Measured and Indicated Resource of over 2.87 billion pounds of copper and an Inferred Resource of over 2.93 billion pounds of copper at a 0.4% Cu cut-off grade has been identified from 64 drill holes completed prior to 2010, and the deposit remains open-ended laterally and at depth (see resource table below at various cut-off grades).
* Drilling with four core rigs is underway with 48 new holes completed or in progress this year to date. Currently, a total of 46,000 metres in 112 holes, has been drilled into Altar. A revised NI 43-101 Resource is expected in the fourth quarter of 2010.
* As a substantial, higher grade chalcocite-covellite zone near surface appears to be amenable to heap leaching, the 2010 drilling program will provide information to complete an independent, NI 43-101 compliant, Preliminary Economic Assessment ("PEA") on a Solvent Extraction-Electrowinning ("SX/EW") copper heap leaching operation within the next ten months, with a Preliminary Feasibility Study to follow, if warranted.
* Depth potential in the core of Altar appears excellent as the deepest hole assayed to date, drill hole ALD 43, returned 719 metres averaging 0.72% Cu and the bottom 322 metres averaged 0.90% Cu. An 81 metre extension of this hole drilled to 1,010 metres this year is awaiting assaying.
* Altar has excellent access, relatively low elevation, ample water sources on-site and the topography is very suitable for mining, processing and heap leach pad infrastructure.
* Large-scale epithermal gold potential in a 2 km by 1.5 km zone along the eastern edge of Altar has been identified. Rock chip samples collected to evaluate this zone returned assay values up to 14.1 g/tonne gold, 400 g/tonne silver and 12.4% copper.
* Peregrine is well-financed, having added $27 million net proceeds to its treasury in November, 2009 and March, 2010.
Eric Friedland, Peregrine's President, said, "Altar was first drilled in 2003 and is one of the largest, recently discovered porphyry copper deposits in Latin America. The deposit hosts a large zone of near-surface, higher-grade chalcocite-covellite copper mineralization that we believe will be amenable to SX/EW, heap leach copper production. This potentially leachable mineralization, coupled with the relatively low elevation setting with excellent access, and the availability of water, sulphuric acid, future line-power and other necessary infrastructure, gives Peregrine an important competitive advantage that we will fully investigate starting with the completion of an independent, NI 43-101 compliant, PEA over the next ten months."
SUMMARY OF ALTAR RESOURCE
Altar is a large Andean-style porphyry copper deposit. The alteration zone encompasses an area measuring over three by two kilometres with a strong, coincident induced polarization (IP) geophysical anomaly of approximately the same size. The copper mineralization within the upper 300 metres of the deposit includes both supergene digenite-covellite and hypogene chalcocite-bornite replacing earlier chalcopyrite. In several drill holes, higher grade copper mineralization is present at surface, and the average depth of the leached capping is approximately 80 metres.
The Company completed its first independent NI 43-101 compliant preliminary resource estimate for the Altar project on September 1, 2008. The resource estimate was jointly prepared by Nilsson Mine Services Ltd. and GeoSim Services Inc. of Vancouver, Canada and utilized drill results for the first 64 holes completed at Altar prior to April, 2008. An updated NI 43-101 Technical Report (dated October 20, 2009) including this resource estimate and complete drilling data for these first 64 drill holes is available on SEDAR at www.sedar.com and on the Company's website at www.peregrinemetals.com. In addition, a block model of the current resource, including drill collars, can be viewed at http://www.peregrinemetals.com/i/pdf/altar553.pdf.
An updated NI 43-101 compliant resource estimate which will include all of the 2010 drilling results is anticipated to be completed in the fourth quarter of this year.
The Company has delineated a large volume of combined hypogene and supergene copper-molybdenum-gold sulphide mineralization. The mineralization at Altar remains open laterally and to depth. For example, two step-out holes drilled last month, located 300 metres to the east and 350 metres to the southeast of hole ALD 43 respectively, also encountered chalcopyrite mineralization and intense alteration and quartz stockworking and bottomed in mineralization at depths of 814 and 640 metres respectively. Assaying of drill core from the 2010 drill program has commenced and results will be reported on a regular basis.
The current independent NI 43-101 resource estimate is summarized in the following table:
ACCESS AND INFRASTRUCTURE
Altar is located in San Juan Province, Argentina, an area of considerable mining development activity, including two major projects held by Barrick Gold Corporation, Veladero, a producing gold mine and Pascua-Lama, an advanced-stage gold development project currently under construction. Gualcamayo, a producing gold mine owned by Yamana Gold Inc. is also situated in San Juan Province. Altar is located at a relatively low elevation of 3,100 to 3,500 meters, eight kilometres from the Chilean border and about 23 kilometres by road north of the large El Pachon porphyry copper project, owned by Xstrata plc., currently at the feasibility stage. Altar is currently accessed by roads within Argentina, and is less than 20 kilometres from the Chilean roadway system. To view a map of the project's location, go to the following link http://www.peregrinemetals.com/i/pdf/altar-map.pdf.
The Altar camp is situated on a large, flat alluvial plain measuring 3.2 by 1.5 kilometres, located only 4.6 kilometres, and 400 meters down-slope, from the Altar deposit (see photos on the Company's web-site
http://www.peregrinemetals.com/i/pdf/altar653.pdf). This large plain appears suitable to accommodate all of the mining and processing infrastructure required for a large-scale, SX/EW copper leaching operation and its location down-slope from the deposit will assist with ore transportation to the heap leach pads.
SX/EW LEACHABLE COPPER TARGET
Preliminary metallurgical testwork on the chalcocite enrichment zone in the upper 300 plus metres of the deposit suggests that this material is a good candidate for relatively low cost SX/EW processing. A comprehensive two-phase bottle roll testwork program consisting of over 440 kg of material taken from a total of six representative core holes showed copper recoveries averaging 81% of total copper and over 90% of the readily soluble copper fraction in just 55 days, with relatively low sulphuric acid consumption estimated for a commercial operation to be in the range of 13-15 kg per tonne.
Jeff Toohey, Vice President, Exploration, of Peregrine, said, "We are fast-tracking the near-surface, higher-grade copper mineralization at Altar towards SX/EW feasibility. Our work to date suggests that this potentially leachable copper target could have a core zone with potential quantity and grade in the range of 60 to 100 million tonnes averaging between 0.60% Cu and 0.70% Cu as part of a larger leachable copper target whose potential quantity and grade we estimate to be in the range of 200 to 400 million tonnes grading between 0.40% and 0.50% Cu. We currently have four diamond drills turning at Altar focussed on defining the leachable copper resource and further increasing the size and confidence level of the global copper resource all as part of the on-going PEA process."
The quantity and grade of the mineralization described above is conceptual in nature and is the target of continuing exploration. There has been insufficient exploration completed to specifically define a leachable mineral resource and it is uncertain if further exploration will result in the target being delineated as a leachable mineral resource.
The order of magnitude estimates of potential quantity and potential grade of the leachable copper target were made by Mr. Jeff Toohey, M.Sc., P.Eng., and are based on examination of cross sections and plans constructed from the first 64 core holes drilled into Altar totalling 29,292 metres, and on examination of individual drill logs with observations of copper mineralogy and length-weighted average copper grades composited from continuous 2-metre sample intervals in those drill holes.
GOLD POTENTIAL
Altar is also host to a potentially large high-sulphidation epithermal gold-silver system which is telescoped and now lies directly over and immediately peripheral to the porphyry copper system. In 2009, the Company mapped and sampled over 200 "silica ledges" (quartz-flooded sub-vertical structural zones) exposed in the ridge-tops surrounding the Altar porphyry copper deposit. They are distributed over an area measuring approximately 2.0 x 1.5 kilometres. Assays from 477 grab samples of the epithermal mineralization have returned up to 14.1 g/t gold, 400.5 g/t silver and 12.4% copper. The exposed mineralization exhibits characteristics that are typical of productive high-sulphidation epithermal gold deposits, including vuggy silica, multi-stage episodic hydrothermal breccias, colloform and crustiform banded quartz, and deposition of native sulphur, alunite, barite, copper sulphates, sulphides and sulphosalts, limonite and boxworks after sulphides.
In January, 2010, the Company commenced a comprehensive program of detailed outcrop sampling, excavator trenching, systematic continuous rock chip sampling of road cuts and trenches, and an induced polarization and resistivity geophysical survey to further define the gold and silver potential and to guide preliminary drill testing of this large precious metals target area. To view images of the gold sampling go to http://www.peregrinemetals.com/i/pdf/altar682.pdf.
Additional gold potential has been recognized in the leached capping of the Altar porphyry copper deposit, where drill holes have returned intervals including: 318 metres @ 0.31 g/t gold; 243 metres @ 0.25 g/t gold; and 114 m @ 0.57 g/t gold. The leached capping of the porphyry copper deposit transitions upwards into the roots of the high-sulphidation epithermal gold-silver system and together this large volume of material represents an attractive, potential bulk-tonnage, gold-silver target that likely would be removed as pre-stripping in accessing an eastern portion of Altar's porphyry copper mineralization.
2010 PROGRAM AND FUTURE WORK
The current drilling program commenced January 15, 2010 and is focussed on step-out and infill holes to delineate a leachable copper resource, to expand and upgrade the global copper resource to higher percentages in the Measured and Indicated categories, and to continue to delineate the limits of the higher grade core of the deposit laterally and at depth.
During the next ten months, the Company is working to deliver an independent, NI 43-101 compliant Preliminary Economic Assessment (PEA) on a SX/EW copper operation, which will be based on a leachable copper resource estimate scheduled for completion in the fourth quarter.
The highly experienced team assembled for the PEA and each member's area of expertise and responsibility are presented below:
* Study Coordination and Report Preparation; Process Plant Design, Layout and Capital and Operating Cost Estimation; Site Infrastructure Design and Evaluation - KD Engineering, Tucson, Arizona.
* Metallurgical Consulting, Test-work Design and Monitoring - Hydrometal, Inc., Knightsen, California.
* Resource Estimation, Ore Body Modelling, Block Modelling and Geostatistics, GeoSim Services Inc. and Nilsson Mine Services Ltd., Vancouver, British Columbia.
* Mine Planning and Pit Design, Waste Dump Layouts, Production Scheduling, and Capital and Operating Cost Estimation - Nilsson Mine Services Ltd., Vancouver, British Columbia.
* Civil Infrastructure, Open Pit Slope, Waste Dump, Leach Pad and Plant Site Geotechnical Design Criteria - BGC Engineering Inc., Vancouver, British Columbia.
* Access Road Design, Layout and Cost Estimation - BGC Engineering Inc., Vancouver, British Columbia.
* Water Supply Evaluation - BGC Engineering Inc., Vancouver, British Columbia.
* Environmental Baseline Studies, Environmental Assessment, Hydrology, Permits, Licensing, Socio-economic Studies and Community Relations - Bethsabe Manzanares, San Juan, Argentina.
* Economic Evaluation, After-tax DCF Model,Financials, and Sensitivity Analysis - Nilsson Mine Services Ltd., Vancouver, British Columbia.
* Independent Engineering Consultant to the Company, Study Oversight, Scheduling, PEA Costing Controls and Progress Reporting - KJ Kuchling Consulting Ltd., Calgary, Alberta.
Approximately 80 holes, totalling 25,000 metres of HQ/NQ core, are scheduled to be drilled this year as part of the PEA. In addition, the Company will complete the first phase of a comprehensive column leach metallurgical test-work program, continue environmental baseline and impact studies, and complete road, power, water and sulphuric acid optimization studies. The budget for the PEA is estimated at US$11,350,000.
Under the 2010 program, 48 holes have been drilled or are in progress to date totalling about 17,000 metres. A total of 112 holes has been completed at the project since drilling began in 2003, for a total of approximately 46,000 metres. Drilling is on-going on a 24 hour per day, seven day per week, schedule with four core rigs. Results from the 2010 drilling and exploration program will be released by the Company on a regular basis beginning in April.
Following completion of the SX/EW PEA, and subject to favourable results, the Company anticipates immediately embarking on a Preliminary Feasibility Study on a SX/EW copper operation which is expected to take an additional 18 months to complete.
Peregrine Metals holds a 100% interest in the Altar project subject to a 1% NSR royalty granted to Rio Tinto and another 1% NSR royalty granted to the underlying concession owner that may be purchased by Peregrine from the underlying owners at any time for US $1 million.
An introduction and update to the Company's Quebrada de la Mina copper-gold exploration project, located near Altar and the Pampa del Toro iron sands project, in Peru, will be provided during the second quarter of 2010.
Jeff Toohey, M.Sc., P.Eng., Vice President Exploration for the Company, is a Qualified Person as defined by NI 43-101 and is responsible for the design and implementation of the exploration work being carried out by the Company at the Altar Project.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business, mineral resource estimates and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance and planned work programs.
The Company has made a number of assumptions with respect to, among other things, the price of copper and other metals, economic and political conditions, and continuity of operations. Although the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements will prove to be accurate.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following: fluctuations in mineral prices; the Company's dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the re-allocation of the proposed uses of the net proceeds of the offering and the private placement; the Company's lack of operating revenues; uncertainty in the Company's ability to obtain necessary financing to fund the development of its mineral properties or the completion of further exploration programs; the Company's principal property being located in Argentina, including political, economic, and regulatory instability; governmental regulations and obtaining necessary licenses and permits; the Company's mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; fluctuations in the currency markets (particularly the Argentina peso, Canadian dollar and United States dollar); the business being subject to environmental laws and regulations which may increase costs of doing business and restrict the Company's operations; and the Company's dependence on key personnel.
Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.
For more information, please contact
Peregrine Metals Ltd.
Mr. Michael Westerlund
VP Investor Relations and Corporate Communications
(604) 669-8800
(604) 408-8881 (FAX)
info@peregrinemetals.com
www.peregrinemetals.com
For more information on Mining in Argentina, active companies, projects and operating mines, statistics and much more, please visit our website: http://www.argentinamining.com/
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 1, 2010) - Peregrine Metals Ltd. (TSX:PGM) ("Peregrine" or "the Company") is pleased to provide a description of the Altar porphyry copper-gold project ("Altar") in San Juan Province, Argentina and an update on current drilling activities. Following are some of the key features of the project:
* An independent National Instrument ("NI") 43-101 Measured and Indicated Resource of over 2.87 billion pounds of copper and an Inferred Resource of over 2.93 billion pounds of copper at a 0.4% Cu cut-off grade has been identified from 64 drill holes completed prior to 2010, and the deposit remains open-ended laterally and at depth (see resource table below at various cut-off grades).
* Drilling with four core rigs is underway with 48 new holes completed or in progress this year to date. Currently, a total of 46,000 metres in 112 holes, has been drilled into Altar. A revised NI 43-101 Resource is expected in the fourth quarter of 2010.
* As a substantial, higher grade chalcocite-covellite zone near surface appears to be amenable to heap leaching, the 2010 drilling program will provide information to complete an independent, NI 43-101 compliant, Preliminary Economic Assessment ("PEA") on a Solvent Extraction-Electrowinning ("SX/EW") copper heap leaching operation within the next ten months, with a Preliminary Feasibility Study to follow, if warranted.
* Depth potential in the core of Altar appears excellent as the deepest hole assayed to date, drill hole ALD 43, returned 719 metres averaging 0.72% Cu and the bottom 322 metres averaged 0.90% Cu. An 81 metre extension of this hole drilled to 1,010 metres this year is awaiting assaying.
* Altar has excellent access, relatively low elevation, ample water sources on-site and the topography is very suitable for mining, processing and heap leach pad infrastructure.
* Large-scale epithermal gold potential in a 2 km by 1.5 km zone along the eastern edge of Altar has been identified. Rock chip samples collected to evaluate this zone returned assay values up to 14.1 g/tonne gold, 400 g/tonne silver and 12.4% copper.
* Peregrine is well-financed, having added $27 million net proceeds to its treasury in November, 2009 and March, 2010.
Eric Friedland, Peregrine's President, said, "Altar was first drilled in 2003 and is one of the largest, recently discovered porphyry copper deposits in Latin America. The deposit hosts a large zone of near-surface, higher-grade chalcocite-covellite copper mineralization that we believe will be amenable to SX/EW, heap leach copper production. This potentially leachable mineralization, coupled with the relatively low elevation setting with excellent access, and the availability of water, sulphuric acid, future line-power and other necessary infrastructure, gives Peregrine an important competitive advantage that we will fully investigate starting with the completion of an independent, NI 43-101 compliant, PEA over the next ten months."
SUMMARY OF ALTAR RESOURCE
Altar is a large Andean-style porphyry copper deposit. The alteration zone encompasses an area measuring over three by two kilometres with a strong, coincident induced polarization (IP) geophysical anomaly of approximately the same size. The copper mineralization within the upper 300 metres of the deposit includes both supergene digenite-covellite and hypogene chalcocite-bornite replacing earlier chalcopyrite. In several drill holes, higher grade copper mineralization is present at surface, and the average depth of the leached capping is approximately 80 metres.
The Company completed its first independent NI 43-101 compliant preliminary resource estimate for the Altar project on September 1, 2008. The resource estimate was jointly prepared by Nilsson Mine Services Ltd. and GeoSim Services Inc. of Vancouver, Canada and utilized drill results for the first 64 holes completed at Altar prior to April, 2008. An updated NI 43-101 Technical Report (dated October 20, 2009) including this resource estimate and complete drilling data for these first 64 drill holes is available on SEDAR at www.sedar.com and on the Company's website at www.peregrinemetals.com. In addition, a block model of the current resource, including drill collars, can be viewed at http://www.peregrinemetals.com/i/pdf/altar553.pdf.
An updated NI 43-101 compliant resource estimate which will include all of the 2010 drilling results is anticipated to be completed in the fourth quarter of this year.
The Company has delineated a large volume of combined hypogene and supergene copper-molybdenum-gold sulphide mineralization. The mineralization at Altar remains open laterally and to depth. For example, two step-out holes drilled last month, located 300 metres to the east and 350 metres to the southeast of hole ALD 43 respectively, also encountered chalcopyrite mineralization and intense alteration and quartz stockworking and bottomed in mineralization at depths of 814 and 640 metres respectively. Assaying of drill core from the 2010 drill program has commenced and results will be reported on a regular basis.
The current independent NI 43-101 resource estimate is summarized in the following table:
ACCESS AND INFRASTRUCTURE
Altar is located in San Juan Province, Argentina, an area of considerable mining development activity, including two major projects held by Barrick Gold Corporation, Veladero, a producing gold mine and Pascua-Lama, an advanced-stage gold development project currently under construction. Gualcamayo, a producing gold mine owned by Yamana Gold Inc. is also situated in San Juan Province. Altar is located at a relatively low elevation of 3,100 to 3,500 meters, eight kilometres from the Chilean border and about 23 kilometres by road north of the large El Pachon porphyry copper project, owned by Xstrata plc., currently at the feasibility stage. Altar is currently accessed by roads within Argentina, and is less than 20 kilometres from the Chilean roadway system. To view a map of the project's location, go to the following link http://www.peregrinemetals.com/i/pdf/altar-map.pdf.
The Altar camp is situated on a large, flat alluvial plain measuring 3.2 by 1.5 kilometres, located only 4.6 kilometres, and 400 meters down-slope, from the Altar deposit (see photos on the Company's web-site
http://www.peregrinemetals.com/i/pdf/altar653.pdf). This large plain appears suitable to accommodate all of the mining and processing infrastructure required for a large-scale, SX/EW copper leaching operation and its location down-slope from the deposit will assist with ore transportation to the heap leach pads.
SX/EW LEACHABLE COPPER TARGET
Preliminary metallurgical testwork on the chalcocite enrichment zone in the upper 300 plus metres of the deposit suggests that this material is a good candidate for relatively low cost SX/EW processing. A comprehensive two-phase bottle roll testwork program consisting of over 440 kg of material taken from a total of six representative core holes showed copper recoveries averaging 81% of total copper and over 90% of the readily soluble copper fraction in just 55 days, with relatively low sulphuric acid consumption estimated for a commercial operation to be in the range of 13-15 kg per tonne.
Jeff Toohey, Vice President, Exploration, of Peregrine, said, "We are fast-tracking the near-surface, higher-grade copper mineralization at Altar towards SX/EW feasibility. Our work to date suggests that this potentially leachable copper target could have a core zone with potential quantity and grade in the range of 60 to 100 million tonnes averaging between 0.60% Cu and 0.70% Cu as part of a larger leachable copper target whose potential quantity and grade we estimate to be in the range of 200 to 400 million tonnes grading between 0.40% and 0.50% Cu. We currently have four diamond drills turning at Altar focussed on defining the leachable copper resource and further increasing the size and confidence level of the global copper resource all as part of the on-going PEA process."
The quantity and grade of the mineralization described above is conceptual in nature and is the target of continuing exploration. There has been insufficient exploration completed to specifically define a leachable mineral resource and it is uncertain if further exploration will result in the target being delineated as a leachable mineral resource.
The order of magnitude estimates of potential quantity and potential grade of the leachable copper target were made by Mr. Jeff Toohey, M.Sc., P.Eng., and are based on examination of cross sections and plans constructed from the first 64 core holes drilled into Altar totalling 29,292 metres, and on examination of individual drill logs with observations of copper mineralogy and length-weighted average copper grades composited from continuous 2-metre sample intervals in those drill holes.
GOLD POTENTIAL
Altar is also host to a potentially large high-sulphidation epithermal gold-silver system which is telescoped and now lies directly over and immediately peripheral to the porphyry copper system. In 2009, the Company mapped and sampled over 200 "silica ledges" (quartz-flooded sub-vertical structural zones) exposed in the ridge-tops surrounding the Altar porphyry copper deposit. They are distributed over an area measuring approximately 2.0 x 1.5 kilometres. Assays from 477 grab samples of the epithermal mineralization have returned up to 14.1 g/t gold, 400.5 g/t silver and 12.4% copper. The exposed mineralization exhibits characteristics that are typical of productive high-sulphidation epithermal gold deposits, including vuggy silica, multi-stage episodic hydrothermal breccias, colloform and crustiform banded quartz, and deposition of native sulphur, alunite, barite, copper sulphates, sulphides and sulphosalts, limonite and boxworks after sulphides.
In January, 2010, the Company commenced a comprehensive program of detailed outcrop sampling, excavator trenching, systematic continuous rock chip sampling of road cuts and trenches, and an induced polarization and resistivity geophysical survey to further define the gold and silver potential and to guide preliminary drill testing of this large precious metals target area. To view images of the gold sampling go to http://www.peregrinemetals.com/i/pdf/altar682.pdf.
Additional gold potential has been recognized in the leached capping of the Altar porphyry copper deposit, where drill holes have returned intervals including: 318 metres @ 0.31 g/t gold; 243 metres @ 0.25 g/t gold; and 114 m @ 0.57 g/t gold. The leached capping of the porphyry copper deposit transitions upwards into the roots of the high-sulphidation epithermal gold-silver system and together this large volume of material represents an attractive, potential bulk-tonnage, gold-silver target that likely would be removed as pre-stripping in accessing an eastern portion of Altar's porphyry copper mineralization.
2010 PROGRAM AND FUTURE WORK
The current drilling program commenced January 15, 2010 and is focussed on step-out and infill holes to delineate a leachable copper resource, to expand and upgrade the global copper resource to higher percentages in the Measured and Indicated categories, and to continue to delineate the limits of the higher grade core of the deposit laterally and at depth.
During the next ten months, the Company is working to deliver an independent, NI 43-101 compliant Preliminary Economic Assessment (PEA) on a SX/EW copper operation, which will be based on a leachable copper resource estimate scheduled for completion in the fourth quarter.
The highly experienced team assembled for the PEA and each member's area of expertise and responsibility are presented below:
* Study Coordination and Report Preparation; Process Plant Design, Layout and Capital and Operating Cost Estimation; Site Infrastructure Design and Evaluation - KD Engineering, Tucson, Arizona.
* Metallurgical Consulting, Test-work Design and Monitoring - Hydrometal, Inc., Knightsen, California.
* Resource Estimation, Ore Body Modelling, Block Modelling and Geostatistics, GeoSim Services Inc. and Nilsson Mine Services Ltd., Vancouver, British Columbia.
* Mine Planning and Pit Design, Waste Dump Layouts, Production Scheduling, and Capital and Operating Cost Estimation - Nilsson Mine Services Ltd., Vancouver, British Columbia.
* Civil Infrastructure, Open Pit Slope, Waste Dump, Leach Pad and Plant Site Geotechnical Design Criteria - BGC Engineering Inc., Vancouver, British Columbia.
* Access Road Design, Layout and Cost Estimation - BGC Engineering Inc., Vancouver, British Columbia.
* Water Supply Evaluation - BGC Engineering Inc., Vancouver, British Columbia.
* Environmental Baseline Studies, Environmental Assessment, Hydrology, Permits, Licensing, Socio-economic Studies and Community Relations - Bethsabe Manzanares, San Juan, Argentina.
* Economic Evaluation, After-tax DCF Model,Financials, and Sensitivity Analysis - Nilsson Mine Services Ltd., Vancouver, British Columbia.
* Independent Engineering Consultant to the Company, Study Oversight, Scheduling, PEA Costing Controls and Progress Reporting - KJ Kuchling Consulting Ltd., Calgary, Alberta.
Approximately 80 holes, totalling 25,000 metres of HQ/NQ core, are scheduled to be drilled this year as part of the PEA. In addition, the Company will complete the first phase of a comprehensive column leach metallurgical test-work program, continue environmental baseline and impact studies, and complete road, power, water and sulphuric acid optimization studies. The budget for the PEA is estimated at US$11,350,000.
Under the 2010 program, 48 holes have been drilled or are in progress to date totalling about 17,000 metres. A total of 112 holes has been completed at the project since drilling began in 2003, for a total of approximately 46,000 metres. Drilling is on-going on a 24 hour per day, seven day per week, schedule with four core rigs. Results from the 2010 drilling and exploration program will be released by the Company on a regular basis beginning in April.
Following completion of the SX/EW PEA, and subject to favourable results, the Company anticipates immediately embarking on a Preliminary Feasibility Study on a SX/EW copper operation which is expected to take an additional 18 months to complete.
Peregrine Metals holds a 100% interest in the Altar project subject to a 1% NSR royalty granted to Rio Tinto and another 1% NSR royalty granted to the underlying concession owner that may be purchased by Peregrine from the underlying owners at any time for US $1 million.
An introduction and update to the Company's Quebrada de la Mina copper-gold exploration project, located near Altar and the Pampa del Toro iron sands project, in Peru, will be provided during the second quarter of 2010.
Jeff Toohey, M.Sc., P.Eng., Vice President Exploration for the Company, is a Qualified Person as defined by NI 43-101 and is responsible for the design and implementation of the exploration work being carried out by the Company at the Altar Project.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of applicable Canadian securities legislation. Such forward-looking statements concern the Company's anticipated results and developments in the Company's operations in future periods, planned exploration and development of its properties, planned expenditures and plans related to its business, mineral resource estimates and other matters that may occur in the future. These statements relate to analyses and other information that are based on expectations of future performance and planned work programs.
The Company has made a number of assumptions with respect to, among other things, the price of copper and other metals, economic and political conditions, and continuity of operations. Although the Company believes that the assumptions made and the expectations represented by such statements or information are reasonable, there can be no assurance that forward-looking statements will prove to be accurate.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, risks related to the following: fluctuations in mineral prices; the Company's dependence on one mineral project; the nature of mineral exploration and mining and the uncertain commercial viability of certain mineral deposits; the re-allocation of the proposed uses of the net proceeds of the offering and the private placement; the Company's lack of operating revenues; uncertainty in the Company's ability to obtain necessary financing to fund the development of its mineral properties or the completion of further exploration programs; the Company's principal property being located in Argentina, including political, economic, and regulatory instability; governmental regulations and obtaining necessary licenses and permits; the Company's mineral properties being subject to prior unregistered agreements, transfers, or claims and other defects in title; fluctuations in the currency markets (particularly the Argentina peso, Canadian dollar and United States dollar); the business being subject to environmental laws and regulations which may increase costs of doing business and restrict the Company's operations; and the Company's dependence on key personnel.
Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the forward-looking statements. The Company's forward-looking statements are based on beliefs, expectations and opinions of management on the date the statements are made. For the reasons set forth above, investors should not place undue reliance on forward-looking statements.
For more information, please contact
Peregrine Metals Ltd.
Mr. Michael Westerlund
VP Investor Relations and Corporate Communications
(604) 669-8800
(604) 408-8881 (FAX)
info@peregrinemetals.com
www.peregrinemetals.com
For more information on Mining in Argentina, active companies, projects and operating mines, statistics and much more, please visit our website: http://www.argentinamining.com/ 
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![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/silver/t24_ag_en_usoz_2.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/charts/metals/base/copper-d.gif)
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