Kennady Diamonds Announces Faraday Diamond Sample Grade of 5.10 carats per tonne

Shares Issued and Outstanding: 22,857,675
TSX-V: KDI

TORONTO, Aug. 5, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the diamond recovery results from the Faraday 2014 spring drill program at the 100 percent-controlled Kennady North diamond project, located in Canada's Northwest Territories.

Kennady Diamonds CEO Patrick Evans commented: "The Faraday sample grade of 5.10 carats per tonne is outstanding and amongst the highest diamond sample grades recorded in Canada. This result confirms that the Faraday kimberlite has the potential to host a high grade diamond resource".

Approximately 933 kilograms of kimberlite recovered from Faraday was processed at the Geoanalytical Laboratories Diamond Services at the Saskatchewan Research Council ("SRC"), which is accredited to the ISO/IEC 17025 standard by the Standards Council of Canada as a testing laboratory for diamond analysis using caustic fusion.

The diamond recovery results from the Faraday 2014 spring drill program are summarized in Table 1 below.

Table 1 – Faraday 2014 Spring Diamond Recovery Results

Total

Weight

(Kg)

Number of Diamonds According to Sieve Size Fraction (mm)

Total

Diamonds

+0.106
 -0.150

+0.150
-0.212

+0.212
-0.300

+0.300
-0.425

+0.425
-0.600

+0.600
-0.850

+0.850
-1.180

+1.180
-1.700

+1.700
-2.360

+2.360
-3.350

+3.350
-4.750

+4.750


933.08

1,879

1,180

741

420

207

104

59

25

6

7

0

0

4,628

*Total weight of sample 4.76 carats
*Sample grade: 5.10 carats per tonne

Table 2 below provides details of the number and weight of the plus 0.85mm "commercial" size diamonds recovered from the Faraday spring drill program. Diamonds larger than 0.85mm can be sorted into categories with different price points and are considered, under Canadian Institute of Mining guidelines, to have "commercial" characteristics.

Table 2 – Faraday 2014 Spring "Commercial" Size Diamond Recovery Results


Sieve Size Fraction (mm)

+0.850 
-1.180

+1.180 
-1.700

+1.700 
-2.360

+2.360 
-3.350

+3.350 
-4.750

+4.750

Total

Sample Grade
 (carats/tonne)

Number of

Diamonds

59

25

6

7

0

0

97


Weight (ct.)

0.6828

0.9028

0.4591

1.5783

0

0

3.6230

3.88

*Total sample weight 933.08 kg
*Total sample grade 5.10 carats/tonne

Table 3 below provides details of the characteristics of the three largest diamonds recovered from the Faraday 2014 spring drill program.

Table 3 – Faraday 2014 Spring Diamond Characteristics

Weight
(carats)

Length
(mm)

Width
(mm)

Height
(mm)

Description

0.40

4.60

3.30

2.70

Off-white, transparent, octahedral, minor inclusions

0.25

3.70

3.00

2.50

White/colorless, transparent, octahedral,  inclusions

0.22

4.00

2.50

2.00

White/colorless, transparent, aggregate, inclusions

 

Besides the outstanding sample grade, almost all the "commercial" size diamonds are described as transparent and either white/colorless or off-white. Approximately 75 percent have either no or only minor inclusions. Together with grade, diamond quality is a key value driver.

Mr. Evans concluded: "We are very pleased with the Faraday diamond recovery results and are keenly looking forward to the diamond recovery results from the Kelvin 25 tonne mini-bulk sample that is currently being processed at the SRC. The summer delineation and mini-bulk sample drill program at Kennady North is progressing well with over 10 tonnes of kimberlite having been recovered to date from the Kelvin kimberlite pipe ".

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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. 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.

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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