Encouraging diamond results from Tli Kwi Cho (DO27) mini bulk sample

Kettle River Resources Ltd. has received the diamond results of the recent kimberlite bulk sample from Peregrine Diamonds Ltd.  The DO27 kimberlite pipe is located on the WO claim block located in Canada’s Northwest Territories, about 300 km north of Yellowknife and southeast of the Diavik™ Diamond Mine.  This is the first work conducted on the kimberlite since a 5,000 tonne sample was taken in 1994. 

Initially discovered by Kennecott Canada Exploration Inc. (KCEI) in 1992 with airborne geophysics, the DO27 displayed two nested circular features dubbed “the dog’s balls” anomalies and translated as ‘Tli Kwi Cho”.  The DO18 anomaly, located approximately 300 meters to the north was distinctly separate from the Tli Kwi Cho.  For clarification, Peregrine, the operator, now refers to the former Southern lobe of the DO27 kimberlite as the “Main vent,” the former Eastern lobe as the “North East subsidiary” and the DO18 kimberlite as the “North lobe”, all comprising the “Tli Kwi Cho Complex.”  

The initial DO-27 exploration program in 1993 returned promising microdiamond results through core drilling. This encouraged the joint venture partners at the time to move directly to an underground bulk sampling program.  Technical problems encountered underground resulted in the sample being collected from the northeastern subsidiary vent, and not from the central portion of the main vent as originally intended.  Grades of 0.36 carats per tonne were obtained from the subsidiary vent and no further work was conducted on this project under that ownership.  The main vent of DO-27 was never tested in the 1994 bulk sample.  Peregrine’s results contrast with KCEI’s previous results from the peripheral kimberlite facies and confirm that the DO-27 kimberlite contains a large and high grade central portion to the pipe. Further bulk sampling is necessary to obtain a larger package of diamonds. 

Jennifer Pell, Vice-President Exploration-Diamonds, of Peregrine Diamonds Ltd. provided details of the extraction and processing of the 151 tonne sample. She reported 106.03 carats recovered from 5 Reverse Circulation (RC) holes (108 tonnes) represented a ‘pyrope, chrome diopside rich’.  This facies in the main vent produced an average grade of 0.98 carats per tonne. RC hole #3, a ‘fresh olivine rich facies’ with a sample weight of 42.8 tonnes gave 29.93 carats for a grade of 0.70 carats per tonne. The entire sample grade average is 0.91 carats per tonne. The diamonds will be sent for valuation, the results expected to take a couple months. 

As outlined in a press release dated April 19^th, 2005, Peregrine completed six large diameter (13 ¾ inch) RC drill holes in the DO-27 main vent during early 2005.  This amounted to 151.27 dry tonnes of kimberlite and was processed in the Ekati™ Diamond Mine test plant.  Tonnages were calculated using measured and estimated hole dimensions and measured specific gravities. 

Two different primary pyroclastic kimberlite phases were intersected in the portion of the pipe tested by the RC drilling, this being the reason for reporting separate average grades.  Holes RC 1, 2, 4, 5, and 6 sampled a layered sequence of primary pyroclastic tuffs in the central portion of the pipe that were rich in chrome diopside and pyrope and contained lesser amounts of fresh olivine.  RC 3, the southernmost hole of the program, intersected a completely different volcaniclastic kimberlite facies with high concentrations of fresh olivine.  The individual grades and specific diamond information for the six RC holes are summarized as follows: 

 1,806 diamonds were recovered using a 1mm screen.  There were 21 stones larger than one-half carat recovered with the largest stones coming from the central volcanic kimberlite facies. The four largest stones were a 2.93 carat, light brown, flattened octahedron, a 2.66 carat, off-white, tetrahexahedron, a 1.85 carat, clean, white octahedron, and a 1.62 carat clean, white, complex tetrahexahedron.

 Commenting on the results, Mr. Howard Coopersmith, an international diamond expert with over 30 years experience and a consultant to Peregrine Diamonds said “Peregrine’s samples confirm that the grade and diamonds are significantly different and better than the previous Kennecott sample. This kimberlite deposit contains ore grades and commercial gem diamonds in a crater complex of significant size and depth”.

 Core Drilling report

Prior to the ice melt during April and May, the Joint Venture partners (JV) completed three NQ diamond drill holes totalling 750 meters. The program was designed to test the depth of the kimberlite and to obtain geological information on lithological variations detected in the RC drilling.  The deepest hole ended in kimberlite at 465 meters and a second hole also ended in kimberlite at 230 meters.  This program has significantly extended the known depth of the main vent, more than double the deepest known hole of 215 meters.

 A budget will be presented as soon as possible to conduct caustic fusion micro-diamond analysis of this core. The information will be important to determine the potential in the deeper levels in the pipe.

Peregrine has advised, subject to partner approval, they intend to pursue an extended program of diamond drilling at both DO-27 and the nearby DO-18 pipe now referred to as the northern lobe of the Tli Kwi Cho complex, starting July, 2005.  DO-18 occurs on land under a thin veneer of till cover. Microdiamond grades as high as 1.41 carats per tonne over 242 meters were reported at DO-18 from several diamond drill holes completed by KCEI in 1993.

Peregrine vested at 54.475%

Peregrine acquired the WO Claim Block option of December 6, 2002 under agreement with  BHP Billiton Diamonds Inc. and in lieu of the required 200 tonne bulk sample, all joint venture partners have agreed that in exchange, Peregrine will fund the next $500,000 of core drilling, and deemed to have now earned their 54.475% interest in the project and is the operator.  At this point, contributing interests are as follows: Archon Minerals Ltd. 13.275%, Aber Diamond Corp. 7.35%, DHK Diamonds Inc. 20% (owned 1/3 each by Dentonia Resources Ltd., Horseshoe Gold Mining Inc., and Kettle River Resources Ltd.), and SouthernEra Diamonds Inc. 4.9% all subject to Gross Overriding Royalties of 1% to Kennecott Canada Explorations Inc. and 0.3% to Aberex Minerals Ltd.

 Dr. Jennifer Pell, P.Geo., is the Qualified Person who oversaw the entire program at DO-27. Mr. Howard Coopersmith of Coopersmith & Associates, Colorado, provided audits on the sample protocols and procedures.  AMEC Americas Limited in Vancouver audited the drilling and sampling protocols as well as provided quality assurance/quality control audits on the actual drilling, sampling, and evaluating procedures.

 Company representatives viewed the diamonds recovered and are encouraged with the results. The Company currently has 7.2 million shares issued.

 For further information contact Ellen Clements at 1 800 856 3966