WO Project – DO27 and DO18 Kimberlites
URL: http://dentonia.net/projects/diamond/do27/index.php?content_id=11&page_number=1

Content was created on: June 21, 2006

DO-27 Diamond Project, Northwest Territories, Canada
       NI43-101 Technical Report

WO Diamond Project Location

Diamond Exploration, Bright future for Peregrine's crown jewel.

1) DO27 Kimberlite

The WO Diamond Project comprises a total of 15,107 hectares and currently contains nine known kimberlite pipes, the largest of which is DO27, which covers an area in excess of nine hectares.

A 151 tonne mini bulk sampling program conducted by Peregrine at DO27 during 2005, revealed an average grade of 0.98 carat per tonne from five of six R.C. holes drilled. A sixth R.C. holes returned an average grade of 0.7 carat per tonne, different geology.

In addition, in the beginning of 2006 a LDRC (Large Diameter Reverse Circulation) program was commenced, totaling 3,202 meters.

Approximately 566 tonnes of kimberlite were extracted during this bulk sampling program (with the 151 tonnes extracted in 2005, grading 0.98 carats/tonne, and valued from a low of US$54.54 to a high of US$77.77 per carat), is a total of over 717 tonnes of kimberlite extracted from DO-27 kimberlite by LDRC to date. The 2006 program recovered material from vertical depths of up to 403 meters as compared to 209 meters in the 2005 program.

The Ekati™ Diamond Mine Sample Plant Facility began processing the 2006 bulk sample on June 15, 2006. The kimberlite material will be processed as 90 separate samples, each sample being comprised of a number of combined bags representing standard depth intervals in each hole. This will allow the diamond recovery results to be correlated between holes and incorporated into 3D models for future resources evaluation.

The processing of all the kimberlite, including the picking and sorting of all the diamonds, as well as grade calculations, should be completed by late August 2006, at which time results will be released.

In addition a total of twenty-four NQ and HQ core holes totaling 5,233 meters have been completed to date at DO-27 by Peregrine including twelve holes totaling 2,929 meters this winter. Core drilling is currently continuing with the following objectives:

• Delineation drilling of DO-27, particularly the Northeast Lobe which is land based.
• Geotechnical drilling at DO-27.
• Exploration drilling in the area between DO-27 and DO-18 where previous core drilling intersected kimberlite and where geophysical gravity data suggests that DO-27 and DO-18 may be connected at depth.

With the additional programs to commence in August (North East Lobe) and October (DO18), the joint venture partners of the WO Diamond Project intend to take the plus 9 hectare DO27, and possibly any kimberlite discovered between DO27 and DO18, and the 3.5 hectares DO18 into pre-feasibility.

The DO27 and DO18 kimberlites (Tli Kwi Cho) is one of the largest kimberlite complexes discovered, to date, in the NWT, only exceeded by the Wombat and Jay Pipes of BHP Billiton, which currently are not in production but are being sampled.

2) DO18 Kimberlite

In addition to the bulk sampling program now completed on DO-27, the joint venture partners are awaiting microdiamond results from seven core holes drilled during the summer of 2005 on the nearby DO-18 kimberlite. DO-18 is in excess of three hectares in size, and located approximately 700 metres north of DO-27. Previous drilling at DO-18 returned encouraging microdiamond results as high as 1.41 carats per tonne over 242 metres. The microdiamond analyses from the holes drilled in 2005 are being performed by Saskatchewan Research Council Geoanalytical Laboratories in Saskatoon, and results are expected in February, 2006. In the event that results are encouraging, a mini-bulk sampling program will be conducted at DO-18 during the summer of 2006. (land based)

Previous drilling and the results of a Falcon™ gravity survey previously flown by BHP Billiton in 2001, over DO-27 and DO-18, suggest that a third pipe may be located between the DO-18 and DO-27 kimberlites. Further core drilling is planned this year in the area between the DO-27 and DO-18 kimberlites to test this hypothesis. Drilling is also planned on a number of other high-priority targets within the WO diamond project area that have coincident geophysical and geochemical anomalies.

DHK Diamonds Inc. holds a 20% interest in the WO diamond project, which includes both the DO-27 and DO-18 kimberlites, and Dentonia has a 1/3 equity interest in DHK Diamonds Inc. or net 6.67% interest.

Diamond Market

The rough diamond market has increased over the last year and remained stable in 2010.  This trend is expect to continue due to the under supply of mine production and the failure to discover any substantial new deposits in Canada and elsewhere.

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