Kennady Diamonds Updates Kelvin Kimberlite Drilling

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TSX-V: KDI

  • 183 meters of kimberlite intersected in Kelvin delineation drill hole
  • Third drill rig mobilized and summer target doubled to 10,000 meters
  • 7 tonnes of kimberlite recovered to date
  • Kelvin – Faraday kimberlite tonnage estimate to be revised upwards

TORONTO, July 24, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the latest results from the 2014 summer drill program at the Company's 100 percent controlled Kennady North diamond project located in Canada's Northwest Territories. Both delineation (DEL) and mini-bulk sample (MBS) drilling is currently underway at the northwest lobe of the Kelvin kimberlite. Delineation drill hole KDI-14-039 drilled over 183 meters of kimberlite—all to the north and outside the current Kelvin geological model.

Kennady Diamonds CEO Patrick Evans noted: "Delineation drilling to the north of the Kelvin kimberlite is exceeding our expectations. The 183 meter kimberlite intersect is the longest to date at Kennady North. Based on the results from the first three Kelvin delineation drill holes, we are currently reviewing our tonnage estimate for the Kelvin – Faraday kimberlite corridor, which we expect to increase beyond the current 5 to 8 million tonne estimate. In addition, we have decided to mobilize a third drill rig to support an expanded summer drill program."

Table 1 below provides details of the latest holes drilled at the Kelvin kimberlite.

Table 1

Kelvin 2014 Summer Drill Program

Drill Hole

Target

Azimuth

Inclination
from
Horizontal

Kimberlite Intercepts (m)

Approximate

End of
Hole (m)

From

To

Intercept

KDI-14HQ-021b

Kelvin MBS

295

-90

37.00

140.00*

102.00

151

KDI-14HQ-022b

Kelvin DEL

350

-80

114.60

253.70*

124.40

262

KDI-14HQ-023a

Kelvin MBS

295

-80

31.00

141.30

110.30

148

KDI-14HQ-023b

Kelvin MBS

295

-90

38.20

140.60

102.40

145

KDI-14HQ-024a

Kelvin MBS

295

-80

62.80

137.60*

72.60

148

KDI-14NQ-039

Kelvin DEL

350

-65

151.00

341.30*

183.00

352

*Includes minor country rock intercepts
**Intersects in sub-vertical holes not true widths

Based on the encouraging results to date and with the mobilization of a third drill rig, Kennady Diamonds has doubled the estimate for the summer drill program to approximately 10,000 meters. The focus remains on mini-bulk sample and delineation drilling at the Kelvin and Faraday kimberlites, as well as exploration drilling at the MZ and Doyle kimberlites and at least four new exploration targets.

Mobilizing the third drill rig will enable delineation drilling of the Kelvin kimberlite dyke to commence shortly. A "fence" of holes from northeast to southwest along the western shore of Kelvin Lake will be drilled to test the continuity to depth of the Kelvin dyke, which dips to the northwest at approx. 15 degrees. Past drilling of the Kelvin dyke has returned kimberlite intercepts ranging from a few meters to over 20 meters. If the current drill program is successful is proving continuity of the dyke system to depth, the potential also exists here for considerable additional tonnage.

To date, approximately seven tonnes of kimberlite has been recovered from Kelvin. This is in addition to the 25 tonnes recovered from Kelvin during last spring's drill program. The 25 tonne mini-bulk sample has been shipped to Saskatoon for processing at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC"). Results from the Kelvin mini-bulk sample are expected early in the fourth quarter of 2014. In addition, the Faraday one tonne kimberlite sample is currently being processed by the SRC and diamond recovery results are expected during the current quarter.

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