- 33,400 meters drilled
- Faraday 1 and 2 kimberlite pipes discovered
- 443 tonne bulk sample recovered
- Kelvin – Faraday tonnage target increased to 13 to 16 million tonnes
Shares Issued and Outstanding: 46,906,970
TORONTO, Dec. 1, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the successful conclusion of the 2015 field program at the 100 percent controlled Kennady North project with the completion of more than 33,400 meters of drilling. Highlights of the 2015 exploration program include the discovery of two pipe-like kimberlites at Faraday 1 and Faraday 2, as well as confirmation of continuity of the strike of the Kelvin kimberlite beyond the current geological model.
Kennady Diamonds President and CEO Patrick Evans commented: "We are very pleased with the excellent progress made at Kennady North during our most active year since the start of exploration in 2012. The results of the Kelvin bulk sample confirm that Kelvin has the potential to host a large, high-grade diamond deposit. Preparation of the maiden NI 43-101 resource statement is underway and expected to be completed shortly. A high point of the 2015 exploration season was the discovery of two pipe-like kimberlite bodies at Faraday 1 and 2. Techniques that supported the discovery of these two kimberlite pipes are expected to aid in the discovery of further pipe-like bodies within the Kelvin–Faraday corridor when drilling resumes in early 2016."
The focus of core drilling and bulk sampling during 2015 was the Kelvin–Faraday kimberlite corridor. A 443 tonne bulk sample was recovered from the Kelvin Southeast Lobe and returned an average grade of 2.02 carats per tonne. In addition, approx. 12,600 meters of core drilling was completed at the Kelvin pipe, 1,400 meters at the Kelvin sheet, 10,700 meters at Faraday 2 and 2,370 meters at Faraday 1.
The following samples, recovered by core drilling during the summer/fall of 2015, have been delivered to the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC") for processing by caustic fusion:
- 2.76 tonnes from Kelvin North Lobe (processing approx. 80 percent complete);
- 2.28 tonnes from Kelvin North Lobe (processing approx. 45 percent complete);
- 0.93 tonnes from Faraday 2;
- 1.89 tonnes from Faraday 2;
- 1.33 tonnes from Faraday 2; and
- 0.55 tonnes from Faraday 1.
Since the start of exploration at the Faraday kimberlites, approx. 2 tonnes of kimberlite has been processed by caustic fusion at the SRC returning a sample grade of 3.32 carats per tonne for diamonds of commercial size. The processing of a further 4.5 tonnes from Faraday 2 and 0.55 tonnes from Faraday 1 will increase confidence in the grade potential. These results are expected in Q1 2016.
Outside the Kelvin–Faraday corridor, 1,300 meters of drilling was completed at the MZ kimberlite and 940 meters at the Doyle kimberlite. Core recovered from the MZ kimberlite will also be processed by caustic fusion at the SRC and the results will also be released in Q1 2016.
Based on the success of the Kelvin Southeast Lobe bulk sample, planning is underway to recover an approximate 500 tonne bulk sample from the North Lobe in Q1 2016, with results expected by mid-2016. The combined bulk samples are expected to provide a sufficiently large diamond parcel to support revenue modeling for the Kelvin kimberlite. Subject to the successful completion of the North Lobe bulk sample, the Company also plans to recover an approx. 200 tonne bulk sample from the Faraday 2 kimberlite.
In addition to further bulk sampling and core drilling, Kennady Diamonds will commence a preliminary economic assessment ("PEA") in early 2016 for the planned "first mine" at Kelvin. The PEA will provide the project description necessary to file an application during H2 2016 for a Class A water license. Subject to the results of the PEA, Kennady Diamonds plans to commence a definitive feasibility study for Kelvin during H2 2016.
Mr. Evans concluded: "The achievements of 2015 have laid the groundwork for an exciting field program at Kennady North during 2016. Thanks to the successful completion of the recent $48 million non-brokered private placement, Kennady is fully funded to the end of 2017 at which time we expect to be a in a position to make a decision to build the first mine at Kelvin."
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 13 and 16 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.
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, email@example.com