Kennady Diamonds Updates Kelvin Kimberlite Drilling

  • 161 meters of kimberlite intersected in vertical hole at Kelvin north lobe
  • High quality 0.94 carat diamond recovered during core logging at site
  • 9,100 meters of drilling completed to date
  • 19 tonnes of kimberlite recovered from Kelvin

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TSX-V: KDI

TORONTO, Sept. 2, 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 commented: "Delineation drilling at the north lobe of the Kelvin kimberlite pipe continues to exceed expectations. A vertical delineation hole (KDI-14HQ-031a) drilled at the north end of the Kelvin pipe intersected over 161 meters of kimberlite from a downhole depth of approx. 127 meters. This is shallower than previously modeled and indicates the potential for additional tonnage at the high-grade Kelvin pipe".

Kennady Diamonds is also pleased to announce the recovery at site of a high quality 0.94 carat diamond found during logging of core from the Kelvin kimberlite. The diamond measures 7.00mmX4.50mmX3.50mm and is described as white/colorless, transparent, octahedral, distorted, twin with etched trigons. The diamond has no inclusions. The diamond was found at a break in the core from drill hole KDI-HQ14-030a at a depth of approx. 75 meters. Photographs of the diamond will be posted on the Company's website at www.kennadydiamonds.com.

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-029b

Kelvin

355

-90

74.80

177.70*

90.90

184

KDI-14HQ-030a

Kelvin

355

-80

72.50

223.20*

122.30

229

KDI-14HQ-030b

Kelvin

355

-90

70.30

193.90*

114.40

202

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

Table 2 below provides details of the latest delineation holes drilled at the north 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-14-047

Kelvin

255

-65

207.90

263.10

43.30

322

KDI-14-052a

Kelvin

255

-65

102.00

203.00

101.00

230

KDI-14-052b

Kelvin

255

-75

205.60

238.70

33.10

249

KDI-14HQ-031a

Kelvin

355

-90

126.90

298.00*

161.50

319

KDI-14-054a

Kelvin

75

-65

153.90

246.50*

49.10

302

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

Table 3 below details the latest exploration holes drilled to define the down-dip of the Kelvin kimberlite 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-14-050

Kelvin

255

-75

234.90

274.20*

3.80

353

KDI-14-051a

Kelvin

90

-90

165.00

172.40*

1.95

220

KDI-14-051b

Kelvin

90

-65

156.70

161.40*

2.60

175

KDI-14-053a

Kelvin

92

-49

222.45

223.72

1.27

238

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

To date, approximately 19 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.

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 and approximately four new exploration targets is also planned prior to the end of the current drill season.

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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