Feb 24 2011
Peregrine Metals Ltd. (TSX:PGM) has reported the results of the first two core holes, drilled 140 metres apart, into the Quebrada de la Mina porphyry gold-copper discovery located two kilometres northwest of the Company's large Altar porphyry copper-gold deposit in San Juan Province, Argentina.
Intersections from these two holes include 164 metres averaging 1.150 g/t gold ("Au") and 141 metres averaging 0.699 g/t Au.
The Company recently completed four core holes at QDM for a total of 1,005 metres. Assay results for holes QDM-03 and QDM-04 are pending and are expected to be received this quarter.
The QDM porphyry gold-copper target was the subject of a preliminary rock chip sampling programme in 2010. A total of 52 rock chip grab samples was collected from a 150 metre by 300 metre area of abundant porphyry outcrop. These samples averaged 0.7 g/t Au, with the highest value being 3.9 g/t Au. This outcrop area is coincident with the centre of an induced polarization ("IP") geophysical anomaly that measures 400 metres by 900 metres and remains open to the north and south. Drill holes QDM-01 and QDM-02 were situated to test the area of the anomalous rock chip sampling and the IP anomaly at depth.
The gold and copper mineralization intersected in holes QDM-01 and QDM-02 is hosted by dacite porphyry that is strongly fractured with intense sericitic, tourmaline and silica alteration. The host rocks are intensely oxidized within a leached capping at surface and to a vertical depth of 64 metres in the drill holes. Below the leached capping, mineralization occurs as intensely developed sulphides (estimated 3% to 8% by volume) in the form of disseminations and veinlets of pyrite, chalcocite, covellite and bornite. Significant gold values occur in both the oxidized zone and the underlying sulphide mineralization.
Mr. Jeff Toohey, Peregrine Metal's Vice President, Exploration, said, "We are very pleased with the initial drilling results from Quebrada de la Mina. The distribution of gold grades in these holes is remarkably continuous and homogeneous, suggesting that QDM has potential to host a bulk-tonnage gold-copper deposit. Many areas of the three square kilometre alteration zone associated with the mineralized system have yet to be sampled at surface and the overall size potential of the QDM system currently remains undefined. The discovery of a gold-enriched porphyry system only two kilometres from our large Altar porphyry copper deposit, currently undergoing a preliminary economic assessment, could have very positive implications for the overall project economics."
The excellent results to date at QDM have prompted the Company to extend the field season until at least the end of March to conduct further IP geophysical surveys and a comprehensive surface rock chip and talus fines sampling campaign of approximately 1,000 samples. In addition, the Company is currently excavating a five tonne sample of mineralized material from QDM for future metallurgical testwork.
All QDM drill core is sampled in continuous two metre intervals. One half of the core is submitted for assay and the other half is archived in the Company's secure storage facility in Mendoza, Argentina. Drill core samples are prepared and assayed by the project's primary laboratory, Acme Analytical Laboratories, at their facilities in Mendoza, Argentina and Santiago, Chile. Copper values are determined by multi-element ICP and atomic absorption methods. Gold values are determined by fire assay.
Peregrine Metals has a comprehensive and rigorous quality assurance/quality control ("QA/QC") programme in place that employs certified assay standards, blanks and core duplicates, as well as routine check assays at a separate secondary laboratory. This QA/QC programme was designed by Dr. Barry Smee of Smee and Associates Consulting Ltd.
Mr. 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 is responsible for, and has reviewed and approved of, the information contained in this news release.