Kennady Diamonds Updates Kelvin Kimberlite Drilling

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TSX-V: KDI

  • Kelvin – Faraday kimberlite tonnage estimate increased to 7 - 10 million tonnes
  • 131 meters of kimberlite intersected at Kelvin
  • 14.8 tonnes of kimberlite recovered to date from Kelvin
  • Summer drill target increased to 12,000 meters

TORONTO, Aug. 18, 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. Exploration, delineation and mini-bulk sample drilling is currently underway at the Kelvin kimberlite.

Kennady Diamonds CEO Patrick Evans noted: "Delineation drilling at the north lobe of the Kelvin kimberlite pipe is exceeding expectations and initial exploration drilling at the Kelvin dyke is returning promising kimberlite intersects. Based on the results to date, we have revised our tonnage estimate for the Kelvin – Faraday kimberlite corridor from the previous 5 to 8 million tonnes to 7 to 10 million tonnes".

Table 1 below provides details of the latest mini-bulk sample holes drilled at the Kelvin kimberlite.

Table 1
Kelvin 2014 Summer Mini-Bulk Sample Drill Program

Drill Hole

Target

Azimuth

Inclination

Kimberlite Intercepts (m)
Approximate

End of
Hole (m)

From

To

Intercept

KDI-14HQ-024b

Kelvin

295

-90

59.30

137.30*

74.10

142

KDI-14HQ-025a

Kelvin

295

-80

57.50

153.00

95.50

157

KDI-14HQ-025b

Kelvin

295

-90

60.60

135.00*

72.20

145

KDI-14HQ-026b

Kelvin

295

-90

72.60

163.00*

89.00

170

KDI-14HQ-027b

Kelvin

295

-90

61.00

163.00*

100.20

169

KDI-14HQ-028a

Kelvin

355

-80

73.10

212.00*

131.60

220

KDI-14HQ-028b

Kelvin

355

-90

63.10

188.00*

123.60

196

KDI-14HQ-029a

Kelvin

355

-80

68.50

205.50*

108.80

217

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

Table 2 below provides details of the latest delineation holes drilled diagonally across the north/northwest lobe of the elongated Kelvin kimberlite pipe.

Table 2
Kelvin 2014 Summer Delineation Drill Program

Drill Hole

Target

Azimuth

Inclination

Kimberlite Intercepts (m)
Approximate

End of
Hole (m)

From

To

Intercept

KDI-14-040

Kelvin

70

-62

81.40

105.70

24.30

115

KDI-14-041

Kelvin

70

-75

105.50

191.00*

77.00

205

KDI-14-042

Kelvin

250

-62

85.20

149.30*

62.70

160

KDI-14-043

Kelvin

250

-75

143.30

213.40*

54.50

229

KDI-14-044

Kelvin

75

-65

205.20

294.80*

76.20

349

KDI-14-045

Kelvin

75

-75

289.70

320.40

30.70

376

*Includes minor country rock intercepts
**Not true widths

Table 3 below details the latest exploration holes drilled to define the down-dip of the Kelvin dyke.

Table 3
Kelvin 2014 Summer Exploration Drill Program

Drill Hole

Target

Azimuth

Inclination

Kimberlite Intercepts (m)

Approximate

End of
Hole (m)

From

To

Intercept

KDI-14-046

Kelvin

130

-90

220.80

229.10*

5.10

275

KDI-14-048

Kelvin

130

-65

147.60

150.80

3.20

205

*Includes minor country rock intercepts
**Not true widths

Following the mobilization of a third drill rig, drilling at the Kennady North project has advanced rapidly with the result that the estimate for the summer drill program has been increased to approximately 12,000 meters. The focus remains on delineation, exploration and mini-bulk sample 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.

To define the down-dip to the northwest of the Kelvin kimberlite dyke a "fence" of holes is being drilled from northeast to southwest along the western shore of Kelvin Lake.  Past ice-based 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 to depth, the potential exists for considerable additional tonnage at the Kelvin kimberlite.

To date, approximately 14.8 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 is currently being 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.

****

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 7 and 10 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. An approx. one tonne sample from the Faraday kimberlite returned a sample grade of 5.10 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