Kennady Diamonds Plans Extended Kennady North Drill Program

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

  • Kelvin diagonal delineation hole intersects 129 meters of kimberlite
  • 12,500 meters drilled to date: Target increased to 14,000 meters
  • 24 tonnes of kimberlite recovered to date: Target increased to 27 tonnes

TORONTO, Sept. 25, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that over 129 meters of kimberlite has been intersected in a diagonal delineation drill hole at the far north of Kelvin kimberlite.  Hole KDI-14-058a was drilled from west to east across the elongated Kelvin kimberlite at a dip of minus 62 degrees and intersected kimberlite from a downhole depth of approx. 235 meters to 364 meters.

Commenting, Kennady Diamonds CEO Patrick Evans said: "The 129 meter diagonal kimberlite intersect is the widest drilled to date at Kelvin. Combined with the 215 meters of kimberlite intersected in the south – north delineation drill hole KDI-14-055, it is apparent that the volume of the Kelvin kimberlite is expanding in a northerly direction. Based on these results, the Company is reviewing its tonnage target for the Kelvin – Faraday kimberlite corridor, which currently stands at 7 to 10 million tonnes".

As previously reported, drilling of delineation hole KDI-14-055 stopped in kimberlite at a downhole depth of 373 meters due to unstable ground conditions in an area above the kimberlite. Options to stabilize the ground were explored, but in the interest of time it has been decided not to complete drilling of KDI-14-055 and instead to focus on completing the four diagonal delineation drill holes currently underway. 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-14-057a

Kelvin

255

-65

126.80

199.20

72.40

250

KDI-14-057b

Kelvin

255

-75

210.70

219.70*

6.00

301

KDI-14-058a

Kelvin

75

-62

235.20

364.50

129.30

379

KDI-14-059a

Kelvin

255

-62

253.40

342.80

89.40

355

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

Drill hole KDI-14-057b "clipped" the bottom of the kimberlite emplacement with a narrow intercept of approx. 6 meters.

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

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-HQ14-032b

Kelvin

355

-90

86.50

209.30*

107.80

217

*Includes minor country rock intercepts

To date, approximately 12,500 meters has been drilled at the Kelvin kimberlite. The Company's drill target has now been increased to 14,000 meters. In addition, approximately 24 tonnes of kimberlite has been recovered from Kelvin and the Company has now increased its target to 28 tonnes. 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") and results are expected shortly.

In view of the exceptional progress that has been made with drilling at the Kelvin kimberlite, drilling of the Faraday, MZ and Doyle kimberlites as well as other exploration targets has yet to commence. To support an extended drill program beyond October, the Company is currently planning an expansion of the Kelvin exploration camp. Further details will be provided in due course. Funds being raised under the recently announced C$5M non-brokered private placement will support an extended fall drill program.

****

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.

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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