Kennady Diamonds Updates Kennady North Drill Program

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TSX-V: KDI

  • Kimberlite "blow" discovered at Faraday 3
  • Over 21 tonnes of kimberlite recovered from Kelvin
  • Exploration drilling outside Kelvin – Faraday corridor to commence

TORONTO, May 8, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) today provided and update on resource drilling at the Company's 100-percent controlled Kennady North diamond project located in Canada's Northwest Territories.

Kennady Diamonds is pleased to announce that delineation drilling at the Faraday kimberlite has resulted in the discovery of a kimberlite "blow" in the area known as Faraday 3. "We are particularly excited by this discovery", said Kennady Diamonds CEO, Patrick Evans. "The presence of a kimberlite blow increases the tonnage potential of the Faraday kimberlite, which has been mapped over a strike length of approx. one kilometer and has also returned high sample grades from past drilling campaigns", Mr. Evans added.

In the past two weeks, over 1,500 meters of drilling has been completed at the Faraday kimberlite, resulting in the recovery of approx. 230 meters of kimberlite. Drilling from ice at Faraday will continue as long as conditions allow.

The Kelvin winter drill program continues to make excellent progress. Two larger diameter drill rigs have been drilling to recover the planned 25 tonne mini-bulk sample, with approx.  21.5 tonnes of kimberlite recovered to date. In view of the good progress, one of the Kelvin drill rigs will this week be moved to conduct exploration drilling at a new exploration target, known as G6, which is located approx. 10 kilometers to the west of the Kelvin – Faraday kimberlite corridor.

Table 1 below provides details of further results from delineation drilling at the Faraday kimberlite. The short intercepts in holes KDI-14-025 and KDI-14-027 defined the outer limits of the kimberlite emplacement at the Faraday 3 "blow". Further drilling at Faraday 3 is currently underway.

Table 1

Drill Hole

Target

Azimuth

Inclination

from

Horizontal

Kimberlite Intercepts (m)

Approximate

End of

Hole (m)

From

To

Intercept*

KDI-14-025

Faraday

55

-45

70.59

76.71**

1.28

139

KDI-14-026

Faraday

55

-65

29.10

88.90**

41.36

126

KDI-14-027

Faraday

55

-90

62.00

65.00

3.00

92

KDI-14-028

Faraday

55

-45

36.80

73.40

36.60

150

KDI-14-029

Faraday

55

-65

60.70

95.00**

32.04

119

*Not true widths
**Includes minor country rock intercepts

Table 2 below provides details from a further ten Kelvin larger diameter drill holes where drilling is focused on the recovery of an approximate 25 tonne mini-bulk sample.

Drill Hole

Target

Azimuth

Inclination

from

Horizontal

Kimberlite Intercepts (m)

Approximate

End of

Hole (m)

From

To

Intercept

KDI-14-012b

Kelvin

295

-90

37.77

123.30*

67.01

133

KDI-14-013a

Kelvin

295

-80

79.38

141.67*

55.63

151

KDI-14-013b

Kelvin

295

-90

62.15

124.55*

56.12

133

KDI-14-014a

Kelvin

295

-80

37.71

146.12*

104.29

154

KDI-14-014b

Kelvin

295

-90

34.87

130.13*

60.39

139

KDI-14-015a

Kelvin

295

-80

66.20

126.88*

55.25

136

KDI-14-015b

Kelvin

295

-90

62.03

117.28*

53.65

130

KDI-14-016a

Kelvin

295

-80

35.88

135.00*

96.88

142

KDI-14-016b

Kelvin

295

-90

37.25

125.00

87.75

134

KDI-14-017a

Kelvin

295

-80

52.50

115.59*

58.49

124

*Includes minor country rock intercepts

Approximately 6,650 meters of drilling has been completed to date at the Kelvin kimberlite, resulting in the recovery of over 21.5 tonnes of kimberlite. Mr. Evans noted: "The Kelvin larger diameter drilling is continuing to recover wide intercepts in vertical and near vertical holes, which is very encouraging. We are hopeful that the vertical drilling will help identify the feeder pipe system of the Kelvin kimberlite, which has yet to be discovered".

About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located immediately to the north, west and south of the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds.

Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between a 5 and 8 million tonnes and also to identify new kimberlites outside of the corridor. This tonnage estimate is based on the drilling completed to date. The potential quantity is conceptual in nature as there has been insufficient drilling to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

An 8,500 meter drill program conducted in 2013 returned exceptional sample grades. A 4.3 tonne sample from the Kelvin kimberlite retuned a grade of 5.38 carats per tonne. A smaller 116 kg sample from the Faraday kimberlite returned a sample grade of 11.23 carats per tonne. The three largest diamonds recovered from the Kelvin kimberlite were a 2.48 carat off-white transparent octahedral, 1.06 carat off-white broken aggregate and a 0.90 carat off-white transparent irregular. The recovery of diamonds of this size and quality from a 4.3 tonne sample is very encouraging.

Qualified Person
This news release has been prepared under the supervision of Carl G. Verley, P.Geo., who serves as the qualified person under National Instrument 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

FORWARD LOOKING INFORMATION

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, the Company's strategic plans, future operations, future work programs and objectives. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Kennady Diamonds Inc.

For further information: Kennady Diamonds Inc., Patrick Evans, President and CEO, (416) 640-1111, investor@kennadydiamonds.com