Kennady Diamonds Announces Kelvin North Sample Grade of 2.6 carats per tonne

Shares Issued and Outstanding: 34,875,865
TSX-V: KDI

TORONTO, Oct. 5, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the diamond recovery results from the Kelvin 2015 spring core drilling program. Approximately 2.4 tonnes of kimberlite from the Kelvin North Lobe was processed by caustic fusion at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC") and returned a sample grade of 2.6 carats per tonne for diamonds of commercial size.

Kennady Diamonds CEO Patrick Evans commented: "We are very pleased with these excellent diamond recovery results, which provided further support for Kelvin's potential to host a high grade diamond resource."

Table 1 below summarizes the caustic fusion diamond recovery results from the Kelvin North Lobe 2015 spring drill program.

Table 1 – Kelvin North Lobe 2015 Spring Caustic Fusion Diamond Recovery Results

Sample Weight 
(dry tonnes)

Number of Diamonds According to Sieve Size Fraction (mm)

Total diamonds

Carat
(+0.85mm
sieve size)

+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

2.416

2,348

1,632

1,034

639

397

209

113

53

24

6

0

6,455

6.29

*Sample grade of diamonds greater than 0.85mm: 2.60 carats per tonne

The four largest diamonds recovered from the Kelvin North Lobe sample are described as:

  • 0.23 carat off-white, transparent, broken octahedral with inclusions;
  • 0.19 carat off-white, transparent, broken octahedral with minor inclusions;
  • 0.18 carat off-white, transparent, broken octahedral with inclusions; and
  • 0.17 carat off-white, transparent, octahedral with no inclusions.

A total of 198 individual diamonds from the above sample were described by the SRC. All but three are described as white and off-white. Two diamonds are described as yellow, only one as brown and none as gray.

The latest Kelvin North Lobe caustic fusion sample grade of 2.6 carats per tonne is in line with the following Kelvin North sample grades taken over the past 12 months:

  1. 2.57 carats per tonne from a 5 tonne sample reported on January 26, 2015;
  2. 2.74 carats per tonne from a 2.7 tonne sample reported on June 22, 2015.

On December 24, 2014 Kennady Diamonds also reported the sample grade of 2.59 carats per tonne from an 18.88 tonne mini-bulk sample taken from the Kelvin North Lobe and processed by dense-media separation at the SRC.

Mr. Evans noted: "Based on sampling completed to date, we have increased confidence in our Kelvin grade guidance of between 2 and 2.5 carats per tonne. Planning is now underway to recover an approximate 500 tonne bulk sample from the Kelvin North Lobe by large-diameter reverse-circulation drilling during the winter of 2016."

Kennady Diamonds also announced that the following samples have been delivered to the SRC for processing before the end of 2015:

  1. 2.28 tonnes from Kelvin North Lobe;
  2. 0.93 tonnes from Faraday 2;
  3. 2.76 tonnes from Kelvin North Lobe;
  4. 1.89 tonnes from Faraday 2;
  5. 1.33 tonnes from Faraday 2; and
  6. 0.55 tonnes from Faraday 1.

Data from the above samples will support grade modelling for the Kelvin and Faraday kimberlites. Kennady Diamonds expects to report a NI 43-101 resource statement for the Kelvin kimberlite before the end of 2015.

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About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located in Canada's Northwest Territories immediately adjacent to the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds (T:MPV, NASDAQ: MDM).

Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between a 12 and 15 million tonnes at a grade of between 2 and 2.5 carats per tonne and also to identify new kimberlites outside of the corridor. The Kelvin – Faraday corridor is a target for further exploration. The 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 Persons
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

RELATED LINKS
www.kennadydiamonds.com

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