Kennady Diamonds Announces Successful Completion of Kennady North Drill Program

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

  • 10,200 meters drilled
  • Over 25 tonnes of kimberlite recovered from Kelvin
  • Over 1 tonne of kimberlite recovered from Faraday

TORONTO, May 27, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the successful completion of the 2014 winter/spring drill program at the Company's 100-percent controlled Kennady North diamond project located in Canada's Northwest Territories. A total of approximately 10,200 meters of drilling was completed, resulting in the recovery of over 25 tonnes of kimberlite from Kelvin and over 1 tonne of kimberlite from Faraday.

Kennady Diamonds CEO, Patrick Evans, commented: "Besides achieving our targets for both meters drilled and tonnes of kimberlite recovered, we are particular pleased with the results from delineation drilling at both the Kelvin and Faraday kimberlites. Kelvin delineation drill hole KDI-14-018 intersected kimberlite over 80 meters, with substantially all of the kimberlite to the north and beyond the current geological model. Also, delineation drilling at Faraday 3 resulted in the discovery of a kimberlite "blow" with intercepts ranging up to 42 meters". Mr. Evans added: "These discoveries confirm the potential for substantial additional tonnage at the Kelvin and Faraday kimberlites, both of which have already returned exceptionally high sample grades".  

Table 1 below provides details from the final seven Kelvin larger diameter drill holes, where drilling was focused on the recovery of a mini-bulk sample.

Table 1

*Includes minor country rock intercepts

Drill Hole

Target

Azimuth

Inclination

from

Horizontal

Kimberlite Intercepts (m)

Approximate

End of

Hole (m)

From

To

Intercept

KDI-14-017b

Kelvin

295

-90

45.38

112.52*

62.38

121

KDI-14-018a

Kelvin

295

-80

35.43

124.78*

71.17

133

KDI-14-018b

Kelvin

295

-90

28.64

117.18*

85.66

136

KDI-14-019a

Kelvin

295

-80

48.37

116.07*

65.74

121

KDI-14-019b

Kelvin

295

-90

33.04

88.00*

46.16

100

KDI-14-020a

Kelvin

295

-80

24.21

121.31*

92.42

130

KDI-14-020b

Kelvin

295

-90

46.00

109.11*

61.06

118

Table 2 below provides details of the results from the final five delineation drill holes at the Faraday kimberlite. Drill hole KDI-14-030 was the final delineation hole drilled at the Faraday 3 "blow". Drill holes KDI-14-031/032/035 and 036 were drilled to define the dyke structure at Faraday 1, which is at the north of the Faraday kimberlite.

Table 2

Drill Hole

Target

Azimuth

Inclination

from

Horizontal

Kimberlite Intercepts (m)

Approximate

End of

Hole (m)

From

To

Intercept*

KDI-14-030

Faraday

235

-90

25.30

69.15**

42.89

125

KDI-14-031

Faraday

145

-45

43.54

52.46**

2.76

151

KDI-14-032

Faraday

145

-65

41.41

50.70**

5.49

64

KDI-14-035

Faraday

145

-45

55.20

58.53

3.33

154

KDI-14-036

Faraday

145

-65

53.35

58.27

4.92

67

*Not true widths
**Includes minor country rock intercepts

Four drill holes tested the G6 geophysical anomaly approx. 10 kilometers to the west of the Kelvin – Faraday kimberlite corridor without intersecting kimberlite.

The Faraday one tonne kimberlite sample is being preparation for the shipment to the Geoanalytical Laboratories Diamond Services at the Saskatchewan Research Council ("SRC"). Diamonds will be recovered by caustic fusion and results are expected in the third quarter of 2014.

The Kelvin 25 tonne mini-bulk sample has been shipped to Yellowknife where detailed logging and analysis will take place prior to dispatch to the SRC for processing. Results from the Kelvin mini-bulk sample are expected in the fourth quarter of 2014.

Following the successful completion of the Kennady North winter/spring exploration program, preparations are underway for the 2014 summer exploration program. The summer program will include:

  1. at least 5,000 meters of core drilling;
  2. wide-spaced overburden till sampling by reverse circulation (RC) drilling at approx. 270 sites across the entire Kennady North project area;
  3. ground geophysics, including Ohmmapper, ground-penetrating radar and ground gravity surveys;
  4. LiDAR airborne mapping of the entire Kennady North project area; and
  5. Infrastructure upgrades to support an expanded 2015 winter exploration program.

Patrick Evans concluded: "We are well on our way to declaring our maiden resource statement by the end of 2014. Our vision remains to define a Kelvin – Faraday resource of between 5 and 8 million tonnes with a grade of greater than 2 carats per tonne".

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

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