Kennady Diamonds Drills 215 meters of Kimberlite at Kelvin: Drill Hole Still in Kimberlite

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TSX-V: KDI

  • 10,900 meters of drilling completed to date
  • 22.5 tonnes of kimberlite recovered from Kelvin

TORONTO, Sept. 15, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that over 215 meters of kimberlite has been intersected in delineation drill hole KDI-14-055 at the Kelvin kimberlite. Kimberlite was intersected from a downhole depth of 157.5 meters to 373 meters. The drill hole remains in kimberlite at 373 meters.  

Commenting, Kennady Diamonds CEO Patrick Evans said: "We are very pleased with the results of delineation drilling at the north end of the elongated Kelvin kimberlite, which continue to exceed expectations. A fan of three drill holes at minus 90 degrees, minus 80 degrees and minus 65 degrees has successfully delineated the Kelvin kimberlite to the north well beyond the current geological model. Preparations are now underway for the drilling of a fan of three further delineation holes to continue tracking Kelvin to the north".

Drilling of delineation hole KDI-14-055 was temporarily stopped in kimberlite at a downhole depth of 373 meters due to unstable ground conditions in an area above the kimberlite at approximately 145 meters downhole. The drill contractors are assessing options to stabilize the ground so that drilling can resume. In the interim, drilling of four diagonal delineation holes (two from west to east and two from east to west) across the far north end of the Kelvin kimberlite will commence shortly. These diagonal delineation holes will allow positioning of the next fan of three northerly delineation holes at the center of the Kelvin pipe.

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

Table 1
Kelvin 2014 Summer Delineation Drill Program

Drill Hole

Target

Azimuth

Inclination

Kimberlite Intercepts (m)

Approximate

End of
Hole (m)

From

To

Intercept

KDI-14-054b

Kelvin

75

-75

215.70

251.80*

32.15

274

KDI-14HQ-031a

Kelvin

355

-90

127.00

298.00*

161.50

319

KDI-14HQ-031b

Kelvin

355

-80

152.25

328.40*

164.00

340

KDI-14-055

Kelvin

355

-65

157.70

373.00

215.30

Still in kimberlite

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

Table 2 below provides details of the latest mini-bulk sample hole drilled at the Kelvin kimberlite pipe.

Table 2
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-HQ14-032a

Kelvin

355

-80

96.50

229.00*

116.50

239

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

To date, approximately 22.5 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 are expected early in the fourth quarter of 2014.

The focus of current drilling remains on delineation, exploration and mini-bulk sample drilling at the Kelvin kimberlite. Drilling at the Faraday, MZ and Doyle kimberlites, in addition to approximately four new exploration targets, is also planned prior to the end of the current drill season. In view of the continuing success of delineation drilling at the Kelvin kimberlite, the above drill plan may require modification.

****

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

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