Kennady Diamonds Announces Initial Diamond Recovery Results from Kelvin Kimberlite

Sample grade 5.37 carats per tonne
0.83 carat, 0.53 carat, 0.49 and 0.42 carat diamonds recovered

Shares Issued and Outstanding: 22,459,330
TSX-V: KDI

TORONTO, Nov. 18, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the initial diamond recovery results from the 2013 summer drill program at the 100 percent controlled Kennady North diamond project, located in Canada's Northwest Territories.

Approximately 3,454 kilograms of kimberlite was recovered from 21 holes drilled at the Northwest Lobe of the Kelvin kimberlite. The kimberlite is being processed at the Geoanalytical Laboratories Diamond Services at the Saskatchewan Research Council, 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. For processing purposes, the kimberlite has been divided into 15 batches, each weighing approximately 220 kilograms.

The results for the first seven batches, totaling 1,527 kilograms, or approximately 40 percent of the total sample, returned a sample grade of 5.37 carats per tonne and are summarized in Table 1 below. The results for the remaining eight batches are expected to be released within the next two to three weeks.

Table 1 - Kelvin 2013 Summer Drill Program: Batches 1 to 7

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  
1,527 2,080 1,378 1,285 588 302 170 97 32 19 3 3 0 5,506
*Total weight of sample 8.20 carats
*Sample grade: 5.37 carats per tonne


Kennady Diamonds CEO Patrick Evans commented: "A sample grade of 5.37 carats per tonne is outstanding and confirms that the Kelvin kimberlite has a coarse diamond size distribution as well as the potential to host a high grade diamond resource. The 2013 winter drill program returned an exceptional Kelvin sample grade of 8.13 carats per tonne, which included an extraordinary 2.48 carat diamond. Adjusting for the impact of the 2.48 carat diamond, there is a remarkable similarity between the 2013 winter sample grade and the sample grade of the first seven batches recovered from the 2013 summer program."

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

Table 2 - Kelvin Summer 2013 "Commercial" Size Diamonds: Batches 1 to 7

  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
97 32 19 3 3 0 154  
Weight (ct) 1.0676 0.9286 1.6418 1.0174 1.8480 0 6.5035 4.2590
*Total sample weight 1,527 kg
*Total sample grade 5.37 carats/tonne


A total of 154 commercial size diamonds were extracted from 1,527 kilograms of kimberlite from the Kelvin 2013 summer drill program. By comparison, 110 commercial size diamonds were recovered from approximately 1,000 kilograms from the Kelvin 2013 winter drill program. This illustrates a high degree of consistency between the samples of approximately one commercial size diamond for every 10 kilograms of kimberlite.

While the 154 commercial size diamonds from the first seven batches have been recovered from the Northwest Lobe of the Kelvin kimberlite, the 110 commercial size diamonds recovered from the 2013 winter program came from sixteen different drill holes across the approximate 1 kilometer strike of the Kelvin kimberlite. Based on this, it is apparent that the Kelvin kimberlite hosts commercial size diamonds across the length and breadth of the kimberlite rather than being concentrated in particular areas.

Table 3 below provides details of the characteristics of the four largest diamonds recovered from the first seven batches of the 2013 summer drill program.

Table 3 - Kelvin Summer 2013 Diamond Characteristics: Batches 1 to 7

Weight
(carats)
Length
(mm)
Width
(mm)
Height
(mm)
Description
0.83 5.40 4.00 3.40 White/colorless, transparent, octahedral, broken, inclusions
0.53 4.80 4.00 2.70 Off-white, transparent, octahedral, no inclusions
0.49 5.00 3.60 3.00 Off-white, transparent, octahedral, minor inclusions
0.42 4.00 3.00 2.50 Off-white, transparent, octahedral, no inclusions


Patrick Evans added: "In addition to the outstanding sample grade of the first seven batches, it is very encouraging to see the presence of two high quality macro diamonds without any inclusions. Grade and diamond quality are key value drivers."

After completion of the diamond recoveries from the 2013 summer program, photographs of the commercial size diamonds will be posted on the Company's website at www.kennadydiamonds.com.

Following the successful conclusion of the 2013 summer drill program, preparations for the 2014 winter exploration program have commenced. Further geophysics over the Kelvin and Faraday kimberlites, as well as new exploration targets outside of the Kelvin - Faraday kimberlite corridor, is scheduled to commence in February 2014. This will be followed in March 2014 by a much expanded drill program, including more than 10,000 meters of delineation and exploration drilling and the extraction of a mini-bulk sample of approximately 25 to 30 tonnes from the Kelvin kimberlite.

The 2014 winter program is expected to be completed by May with the results being announced in the third quarter of 2014. The Company plans to publish a maiden resource statement for the Kennady North project during the fourth quarter of 2014.

In the interest of time, micro diamonds in the smallest sieve size fraction (+0.075 to -0.106) are not being recovered from the 2013 summer sample. While this size fraction usually contains a large number of diamonds, they are very small and of no scientific or commercial value for a diamond project as advanced as Kennady North. For example, 3,139 micro diamonds out of a total of 8,708 diamonds were recovered in this size class from the Kennady North 2013 winter sample. Despite the large number of micro diamonds, exclusion of this size class has no material impact on sample grade or forecasting the distribution of larger stones.

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About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North project which comprises thirteen leases and claims located immediately to the north and west of the four leases controlled by the Gahcho Kué Joint Venture between De Beers Canada (51%) and Mountain Province (49%) located in Canada's Northwest Territories.

A 5,000 meter drill program conducted during the winter of 2013 returned an exceptional sample grade of 8.44 carats per tonne, with a grade of 7.52 carats per tonne for stones having commercial characteristics. The largest three diamonds recovered were a 2.48 carat off-white transparent octahedral, a 0.90 carat off-white transparent irregular, and a 0.75 carat off-white transparent octahedral. The recovery of diamonds of this size and quality from a 1.1 tonne sample is very encouraging.

Kennady Diamonds aims to identify a resource along the Kelvin - Faraday kimberlite corridor of between 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.

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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.

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


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