Kennady Diamonds Announces Kelvin Sample Grade of 2.74 carats per tonne

Shares Issued and Outstanding: 28,633,122
TSX-V: KDI

TORONTO, June 22, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds," the "Company") (TSX-V: KDI) is pleased to announce the diamond recovery results from the Kelvin 2015 winter core drilling program. Approximately 2.7 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 2.74 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 confirm that Kelvin has the potential to host a high grade diamond resource. Based on drilling and sampling completed to date, we estimate that the Kelvin – Faraday kimberlite cluster has the potential to host between 12 and 15 million tonnes at a grade of between 2 and 2.5 carats per tonne."

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

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

 

Sample Weight        (dry tonnes)

Number and Weight of Diamonds According to Sieve Size Fraction (mm)

Total diamonds

Carats (+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

+4.750

2.6874

3,312

2,098

1,208

751

435

245

133

53

21

9

1

0

8,266

7.37

 

*Sample grade of diamonds greater than 0.85mm: 2.74 carats per tonne

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

  • 0.47 carat off-white, transparent, fragment with inclusions;
  • 0.39 carat off-white, transparent, broken tetra-hexahedron with inclusions; and
  • 0.25 carat white/colorless, transparent, broken macle with minor inclusions.

Mr. Evans noted: "It's apparent that the larger diamonds in the sample were broken during the drilling. Nonetheless, the diamonds are of a high quality. As with previous Kelvin samples the number of transparent white/colorless and off-white diamonds is very high."

A total of 662 individual diamonds from the above sample were described by the SRC. Ninety-five percent are described as white/colorless (36%) and off-white (59%). Fourteen diamonds are described as yellow, 12 as brown and only 4 as gray.

Kennady Diamonds is also pleased to announce that approximately one tonne of kimberlite from Faraday 2 is now being processed by caustic fusion at the SRC and the diamond recovery results from this sample are expected in early July. Processing of the 436 tonne Kelvin bulk sample through the SRC dense-media separation plant is also underway and the diamond recovery results are expected before the end of Q3.

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.

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

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www.kennadydiamonds.com

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