Kennady Diamonds Updates Kennady North Drill Program

  • Substantial intercepts outside Kelvin geological model
  • Strike of Faraday 2 Pipe extended to approx. 240 meters

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

TORONTO, July 13, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the latest drill results from the 100 percent-controlled Kennady North diamond project located in Canada's Northwest Territories. The Kennady North project is adjacent to the Gahcho Kué diamond mine currently under development by De Beers Canada and Mountain Province Diamonds (T:MPV; NASDAQ: MDM).

Kennady Diamonds CEO Patrick Evans commented: "Delineation drilling at the Kelvin kimberlite continues to return excellent results. The focus of the drilling detailed below was to delineate the lower areas of the Kelvin pipe at the north end of the current geological model. Holes 43a and 43b retuned significant intercepts beyond the current model. We have now arranged for a larger fourth drill rig to be brought to site to facilitate further exploration/delineation drilling to extend the strike of the Kelvin pipe."

Mr. Evans added:  "We are also very pleased with the progress of the exploration/delineation drilling at the Faraday 2 kimberlite, which has now extended the strike of the Faraday 2 pipe to approximately 240 meters. The intercepts detailed in Table 2 below targeted the lower areas of the Faraday 2 pipe resulting in shorter intersections than previously reported."

Table 1 below provides details of the latest drill results from the Kelvin 2015 summer drill program.

Table 1
Kelvin North Lobe 2015 Summer Drill Program

Drill Hole

Target

Azimuth

Inclination

Kimberlite Intercepts (m)

Approximate

End of Hole (m)

From

To

Intercept*

KDI-HQ15-043a

Kelvin North

77

-80

374.94

414.33

39.39

455

KDI-HQ15-043b

Kelvin North

70

-85

387.08

425.84**

37.74

460

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

Table 2 below details the latest drill results from the Faraday 2 2015 summer drill program.

Table 2
Faraday 2 2015 Summer Drill Program

Drill Hole

Target

Azimuth

Inclination

Kimberlite Intercepts (m)

Approximate

End of Hole (m)

From

To

Intercept*

KDI-15-042c

Faraday 2

153

-64

180.13

207.43

27.30

241

KDI-15-044a

Faraday 2

60

-50

161.00

192.00

31.00

220

KDI-15-044b

Faraday 2

60

-60

198.04

206.64

8.6

247

KDI-15-045a

Faraday 2

58

-56

178.75

215.95

37.20

258

* Intercepts in sub-vertical holes not true widths

Kennady Diamonds is also pleased to report that processing of core samples by caustic fusion is continuing on schedule with the diamond recovery results from a Faraday 2 one tonne sample expected shorty. Processing of the Kelvin 436 tonne bulk sample by dense-media separation is progressing well and the results are expected in the third quarter. Processing of all the samples is taking place at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council.

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About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North project which comprises thirteen leases and claims located immediately to the north and west of the four leases controlled by the Gahcho Kué Joint Venture between De Beers Canada (51%) and Mountain Province (49%) located in Canada's Northwest Territories.

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 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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www.kennadydiamonds.com

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