VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 11, 2010) - Peregrine Metals Ltd. ("Peregrine" or "the Company") (TSX:PGM) is pleased to provide updates on the 2010 drilling and exploration programme and the preliminary economic assessment ("PEA") underway on the Altar porphyry copper-gold deposit ("Altar") in San Juan Province, Argentina. The current drill programme has now concluded, and assays are expected in the coming weeks. The Company is working to deliver an independent, National Instrument ("NI") 43-101-compliant PEA focussed on a solvent extraction/electrowinning ("SX/EW") copper heap-leaching operation by year-end, which will include a leachable copper resource estimate.
Altar is a large Andean-style porphyry copper deposit. As announced on April 1, 2010, an independent NI 43-101 Measured and Indicated Resource of over 2.87 billion pounds of copper (251 million tonnes at 0.52% Cu) and an Inferred Resource of over 2.93 billion pounds of copper (244 million tonnes at 0.54% Cu) at a 0.4% Cu cut-off grade have been currently identified at Altar. These resources are based on only the first 64 holes drilled into the deposit prior to 2010. Results from 76 holes drilled this year are expected to significantly increase the resource size and confidence level at Altar.
The following table shows the current NI 43-101 Altar Resource at a range of cut-off grades based on the first 64 holes drilled into Altar prior to 2010.
Note. Mineral resources that are not mineral reserves do not yet have demonstrated economic viability. The updated NI 43-101 Technical Report (Dated October 20, 2009) is available on SEDAR at www.sedar.com and on the Company's website at www.pmet.com.
The alteration zone at Altar encompasses an area measuring more than 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. This upper zone is the SX/EW target.
2010 FIELD PROGRAMME UPDATE
Drilling Update
The first 2010 core drilling programme at Altar has now concluded for the winter season with drilling scheduled to commence again in November, 2010. The drilling was conducted by Boart Longyear Argentina SA, and included up to four core drills operating 24 hours a day. A total of 76 holes totalling 26,396 metres was completed between January 15 and May 3. Nine of the holes, totalling 1,250 metres, were drilled for metallurgical testing purposes. A total of 140 core holes has now been completed at Altar since drilling began in 2003, for a total of 55,688 metres. A map showing Altar's location, and images of the drill collars over the IP anomaly and the 2009 Altar resource block model, can be viewed at the following link http://www.pmet.com/i/pdf/altar456.pdf.
Jeff Toohey, V.P. Exploration of Peregrine, said "We are very pleased with Boart Longyear Argentina's execution of the 2010 drilling program. The team they assembled was first class, and the completion of more than 26,000 metres of drilling in less than four months is a testament to their professionalism."
Road Construction
During 2010, a total of 24 kilometres of drill and access roads was constructed at Altar
Gold Sampling
Altar is also host to a potentially large high-sulphidation epithermal gold-silver system which lies directly over top of and immediately adjacent to the porphyry copper system. In early 2010, the Company commenced a comprehensive programme of detailed outcrop sampling, trenching and mapping. Systematic, continuous rock chip sampling of road cuts and trenches was completed. An induced polarization and resistivity geophysical survey to further define the gold and silver potential and to guide preliminary drill testing of the precious metals target area was also completed. More than 2,600 continuous rock chip samples, representing more than 5,200 metres of road cuts and trenches, were collected in 2010. These samples will be analysed for gold, silver and related elements later this year in preparation for an initial drilling programme during the next field season, scheduled to commence in November, 2010.
PEA UPDATE
The PEA technical team includes senior level experts from KD Engineering, Hydrometal Inc., GeoSim Services Inc., Nilsson Mine Services Ltd., BGC Engineering Inc., Bethsabe Manzanares and KJ Kuchling Consulting Ltd. The following is an update on the PEA progress.
Metallurgy
A 627 kg shipment of whole, un-split HQ (6.4 cm) drill core samples from five drill holes has been delivered to McClelland Laboratories, Inc. in Sparks, Nevada, for the initial phase of column leach test-work. Peregrine's metallurgical consultant, Dr. Joseph Schlitt, is currently providing technical guidance over this work. The core sample intervals will be composited to provide material for at least 13 column leach tests that are designed to study the relationships of host lithology, ore grade and solubility to recovery and acid consumption and to evaluate optimal crushing sizes. Scoping flotation testing will also be conducted using some of the same drill core composites that were prepared for the column leach tests.
Additional metallurgical core samples are presently being composited for a series of comminution tests to determine the crushing index, abrasion index and ball mill index for the three prominent lithologies that host the copper mineralization at Altar. This testwork will be performed by Philips Enterprises LLC in Golden, Colorado, also under the direction of Dr. Schlitt.
An initial programme of approximately 20 cyanide leach bottle roll tests on gold-bearing material from the Altar leached capping will be conducted at McClelland Laboratories. The sample material will be composited from coarse drill core assay rejects representing different zones of the deposit and different host rock lithologies and grade ranges.
Engineering and Layout
The PEA technical team has developed some initial concepts for locating the leach pad and waste rock dump sites at Altar. A combination of near-pit crushing and conveying has been selected as the ore transport method and potential access road routings are being studied. Alternatives for delivering electric line-power to the project are under review.
Environmental
In April, 2010, potential water supply studies at Altar began and subsurface and surficial water monitoring programmes were designed. A comprehensive programme of baseline water quality sampling and studies of fauna and flora has been completed as part of the ongoing Environmental Baseline Study.
Assays and Resource Modelling
Preparation of the 3D geological models of host rock lithologic units and leached capping has commenced. As preliminary drill assays are received from the project's primary assay laboratory, Acme Analytical Laboratories Ltd., they are being screened according to the Company's Quality Assurance / Quality Control (QA/QC) protocols as required by NI 43-101. The final assays are then incorporated into the drill hole database and resource block model. Final drill hole assays will be reported for complete holes, in groups, as they become available.
Peregrine 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 at any time for US $1 million.
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. Mr. Toohey has reviewed this press release and approves of its content.
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 programmes.
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 programmes; 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@pmet.com
www.pmet.com
Altar is a large Andean-style porphyry copper deposit. As announced on April 1, 2010, an independent NI 43-101 Measured and Indicated Resource of over 2.87 billion pounds of copper (251 million tonnes at 0.52% Cu) and an Inferred Resource of over 2.93 billion pounds of copper (244 million tonnes at 0.54% Cu) at a 0.4% Cu cut-off grade have been currently identified at Altar. These resources are based on only the first 64 holes drilled into the deposit prior to 2010. Results from 76 holes drilled this year are expected to significantly increase the resource size and confidence level at Altar.
The following table shows the current NI 43-101 Altar Resource at a range of cut-off grades based on the first 64 holes drilled into Altar prior to 2010.
Note. Mineral resources that are not mineral reserves do not yet have demonstrated economic viability. The updated NI 43-101 Technical Report (Dated October 20, 2009) is available on SEDAR at www.sedar.com and on the Company's website at www.pmet.com.
The alteration zone at Altar encompasses an area measuring more than 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. This upper zone is the SX/EW target.
2010 FIELD PROGRAMME UPDATE
Drilling Update
The first 2010 core drilling programme at Altar has now concluded for the winter season with drilling scheduled to commence again in November, 2010. The drilling was conducted by Boart Longyear Argentina SA, and included up to four core drills operating 24 hours a day. A total of 76 holes totalling 26,396 metres was completed between January 15 and May 3. Nine of the holes, totalling 1,250 metres, were drilled for metallurgical testing purposes. A total of 140 core holes has now been completed at Altar since drilling began in 2003, for a total of 55,688 metres. A map showing Altar's location, and images of the drill collars over the IP anomaly and the 2009 Altar resource block model, can be viewed at the following link http://www.pmet.com/i/pdf/altar456.pdf.
Jeff Toohey, V.P. Exploration of Peregrine, said "We are very pleased with Boart Longyear Argentina's execution of the 2010 drilling program. The team they assembled was first class, and the completion of more than 26,000 metres of drilling in less than four months is a testament to their professionalism."
Road Construction
During 2010, a total of 24 kilometres of drill and access roads was constructed at Altar
Gold Sampling
Altar is also host to a potentially large high-sulphidation epithermal gold-silver system which lies directly over top of and immediately adjacent to the porphyry copper system. In early 2010, the Company commenced a comprehensive programme of detailed outcrop sampling, trenching and mapping. Systematic, continuous rock chip sampling of road cuts and trenches was completed. An induced polarization and resistivity geophysical survey to further define the gold and silver potential and to guide preliminary drill testing of the precious metals target area was also completed. More than 2,600 continuous rock chip samples, representing more than 5,200 metres of road cuts and trenches, were collected in 2010. These samples will be analysed for gold, silver and related elements later this year in preparation for an initial drilling programme during the next field season, scheduled to commence in November, 2010.
PEA UPDATE
The PEA technical team includes senior level experts from KD Engineering, Hydrometal Inc., GeoSim Services Inc., Nilsson Mine Services Ltd., BGC Engineering Inc., Bethsabe Manzanares and KJ Kuchling Consulting Ltd. The following is an update on the PEA progress.
Metallurgy
A 627 kg shipment of whole, un-split HQ (6.4 cm) drill core samples from five drill holes has been delivered to McClelland Laboratories, Inc. in Sparks, Nevada, for the initial phase of column leach test-work. Peregrine's metallurgical consultant, Dr. Joseph Schlitt, is currently providing technical guidance over this work. The core sample intervals will be composited to provide material for at least 13 column leach tests that are designed to study the relationships of host lithology, ore grade and solubility to recovery and acid consumption and to evaluate optimal crushing sizes. Scoping flotation testing will also be conducted using some of the same drill core composites that were prepared for the column leach tests.
Additional metallurgical core samples are presently being composited for a series of comminution tests to determine the crushing index, abrasion index and ball mill index for the three prominent lithologies that host the copper mineralization at Altar. This testwork will be performed by Philips Enterprises LLC in Golden, Colorado, also under the direction of Dr. Schlitt.
An initial programme of approximately 20 cyanide leach bottle roll tests on gold-bearing material from the Altar leached capping will be conducted at McClelland Laboratories. The sample material will be composited from coarse drill core assay rejects representing different zones of the deposit and different host rock lithologies and grade ranges.
Engineering and Layout
The PEA technical team has developed some initial concepts for locating the leach pad and waste rock dump sites at Altar. A combination of near-pit crushing and conveying has been selected as the ore transport method and potential access road routings are being studied. Alternatives for delivering electric line-power to the project are under review.
Environmental
In April, 2010, potential water supply studies at Altar began and subsurface and surficial water monitoring programmes were designed. A comprehensive programme of baseline water quality sampling and studies of fauna and flora has been completed as part of the ongoing Environmental Baseline Study.
Assays and Resource Modelling
Preparation of the 3D geological models of host rock lithologic units and leached capping has commenced. As preliminary drill assays are received from the project's primary assay laboratory, Acme Analytical Laboratories Ltd., they are being screened according to the Company's Quality Assurance / Quality Control (QA/QC) protocols as required by NI 43-101. The final assays are then incorporated into the drill hole database and resource block model. Final drill hole assays will be reported for complete holes, in groups, as they become available.
Peregrine 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 at any time for US $1 million.
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. Mr. Toohey has reviewed this press release and approves of its content.
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 programmes.
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 programmes; 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@pmet.com
www.pmet.com
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