Peregrine Diamonds is in dispute with joint venture partners, Indicator Minerals and Hunter Exploration, over a diamond exploration program, and filed arbitration action, Mining Weekly reports. Two years ago, Peregrine Diamonds teamed up with Indicator as an operator and Hunter as a partner in a Nanuq property in Nunavut, after discovering diamond bearing kimberlites.

Peregrine Diamonds has been informed by Indicator that it has allocated a budget of C$2.34-million for a diamond exploration program which includes drilling, sampling and analytical work. According to the joint venture agreement, Peregrine Diamonds is to fund half the exploration costs up to the stage of a completed scoping study alongside Indicator. However, Peregrine Diamonds disapproves of the diamond exploration program and contests Indicator's right to go ahead without such approval, reports Mining Weekly.

The firm stated that “Peregrine believes that the drilling program proposed is premature and that the kimberlite should be drilled as part of a larger, future drilling program that would accomplish additional technical objectives and be completed in a more efficient and cost-effective manner," reports Mining Weekly.

Peregrine Diamonds has opened arbitration proceedings contesting having to comply with Indicators notice to pay 50% of the costs for the diamond exploration program without an explicit approval of the diamond exploration program by Peregrine Diamond. The firm petitioned for a restraining order against Indicator, Mining Weekly reports.