Peregrine Diamonds Chidliak site

A core drilling rig set up at Peregrine Diamonds' Chidliak site in 2011, about 120 kilometres northeast of Iqaluit. In a news release, the company says it may have found gem quality stones. (Courtesy Peregrine Diamonds)

A Vancouver company may have hit pay dirt in Nunavut.

Peregrine Diamonds has released the results of a study of its Chidliak site on Baffin Island.

An analysis by a Belgian company found a concentration of good quality diamonds in their samples.

Researchers say the largest chunk of diamond they found could be worth more than $35,000.

Peregrine CEO Eric Friedland says the findings are promising.

He says Chidliak, about 120 kilometres northwest of Iqaluit, has the potential to become a world-class diamond mining site.

The company hopes to open the second diamond mine in Nunavut history.

The Jericho Diamond mine in the Kitikmeot region of Nunavut operated from 2006 to 2008.

It was later purchased, then abandoned, by Shear Diamonds.

Peregrine has been exploring the Chidliak site since 2005.