Kennady Diamonds Updates Kennady North Drilling

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TSX-V: KDI

  • 122 meters of kimberlite intercepted at Kelvin North
  • 5 meters of kimberlite intercepted at MZ Sheet
  • 12.4 tonnes of kimberlite at SRC for processing

TORONTO, Sept. 21, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce further drill results from the 100 percent-controlled Kennady North diamond project located in Canada's Northwest Territories. Infill and geotechnical drilling at the Kelvin kimberlite pipe is now complete.

Kennady Diamonds President and CEO, Patrick Evans, noted: "The focus of activity has now switched to delineation drilling at the Kelvin North Lobe, where we continue to intercept kimberlite well beyond the current geological model. As a result of the success with the two delineation holes detailed in Table 1 below, a third delineation hole (KDI-15HQ-059c) is currently being drilled from the same platform. The program is designed to delineate the Kelvin kimberlite to the northwest beyond the current model."

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

Table 1
Kelvin 2015 Summer/Fall Drill Program

Drill Hole

Target

Azimuth

Inclination

Kimberlite Intercepts (m)

Approximate

End of

Hole

(m)

From

To

Intercept*

KDI-HQ15-059a

Kelvin North

75

-60

221.00

346.00**

122.35

451

KDI-HQ15-059b

Kelvin North

75

-70

276.70

376.00

99.30

400

* Intercepts in sub-vertical holes not true widths

**Includes minor country rock intercepts

A final Kelvin geotechnical hole, KDI-15-054c, was also completed for a final depth of 451 meters.

Exploration drilling at the MZ kimberlite, which is located approximately 25 kilometers to the west of the Kelvin camp, has helped define the MZ kimberlite over a strike length of approximately 2 kilometers. Based on the results to date, the MZ kimberlite appears to be an approximate 3 meter wide sheet structure dipping at approximately 15 degrees to the northeast.

Mr. Evans commented: "If our drilling at MZ continues to confirm continuity of the MZ kimberlite sheet we expect to be able to delineate significant tonnage. Processing of kimberlite recovered from MZ will assist in understanding both the grade potential and diamond quality. These results are expected before the yearend."

Table 2 below details the drill results from the MZ 2015 summer/fall drill program.

Table 2
MZ 2015 Summer/Fall Drill Program

Drill Hole

Target

Azimuth

Inclination

Kimberlite Intercepts (m)

Approximate

End of

Hole

(m)

From

To

Intercept*

KDI-15-060a

MZ

248

-45

71.71

74.24**

0.60

223

KDI-15-060b

MZ

243

-68

72.62

77.12

4.50

283

KDI-15-061

MZ

227

-82

198.21

205.70**

5.01

352

KDI-15-062a

MZ

126

-47

68.82

69.62

0.80

335

KDI-15-062b

MZ

125

-65

60.50

62.00**

0.70

314

* Intercepts in sub-vertical holes not true widths

**Includes minor country rock intercepts

Mr. Evans added: "One of our drill rigs is drilling a final infill hole at the Kelvin kimberlite sheet following which it will be moved to the diamond-bearing Doyle kimberlite to test a number of new geophysical targets. The Doyle kimberlite is located approximately 20 kilometers to the southwest of Kelvin camp on the same northeast-to-southwest structural feature that hosts the Faraday, Kelvin and Gahcho Kué kimberlites".

Kennady Diamonds today also reported that the Company has seven batches of kimberlite core at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council for processing by caustic fusion. Three batches weighing a total of 7.72 tonnes are from the Kelvin North Lobe; three batches weighing a total of 4.16 tonnes are from Faraday 2; and one batch weighing 0.55 tonnes is from Faraday 1. The diamond recovery results from these samples are expected to be released over the balance of the year as each batch is processed.

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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; the define resources at both the MZ and Doyle kimberlites; and also to identify new kimberlites at Kennady North. 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 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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