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- Kimberlite intersected in first three Kelvin infill drill holes
- Amended Exploration Agreement concluded with Lutsel K'e Dene First Nation
- Type A Land Use Permit and Type B Water License Issued
TORONTO, March 6, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) today provided an update on progress at the Company's 100-percent controlled Kennady North diamond project located in Canada's Northwest Territories.
Infill drilling at the Kelvin kimberlite commenced on schedule last week and three drill holes have been completed to date. The infill drill program is designed to increase the level of confidence in the dimensions of the Kelvin kimberlite main body and northwest lobe prior to the commencement of larger diameter drilling to recover the planned 25 to 30 tonne mini-bulk sample. Table 1 below details the latest drill results.
|Drill Hole||Target||Azimuth|| Inclination
| Kimberlite Intercepts (m)
| End of
*Not true widths
Kennady Diamonds is also pleased to announce that an amended Exploration Agreement for the Kennady North diamond project has been concluded with the Lutsel K'e Dene First Nation ("Lutsel K'e). The amended Exploration Agreement establishes the basis for Kennady Diamonds and the Lutsel K'e to work collaboratively to advance the exploration program at the expanded Kennady North project, which includes additional leases and claims acquired and staked to the south and west of the Kelvin - Faraday kimberlite corridor. Commenting, Kennady Diamonds President and CEO, Patrick Evans said: "Our success at Kennady North is dependent upon a mutually beneficial and respectful relationship and we are committed to working in partnership with the Lutsel K'e."
Finally, Kennady Diamonds is also pleased to announce that the Mackenzie Valley Land and Water Board has issued a Type A Land Use Permit (valid for five years) and Type B Water License (valid for seven years) for the Kennady North diamond project. Issuance of these permits will facilitate an advanced exploration program at the Kennady North diamond project.
About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located immediately to the north, west and south of the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds.
Kennady Diamonds aims to identify a resource along the Kelvin - Faraday kimberlite corridor of between a 5 and 8 million tonnes and also to identify new kimberlites outside of the corridor. This 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.
An 8,500 meter drill program conducted in 2013 returned exceptional sample grades. A 4.3 tonne sample from the Kelvin kimberlite retuned a grade of 5.38 carats per tonne. A smaller 116 kg sample from the Faraday kimberlite returned a sample grade of 11.23 carats per tonne. The three largest diamonds recovered from the Kelvin kimberlite were a 2.48 carat off-white transparent octahedral, 1.06 carat off-white broken aggregate and a 0.90 carat off-white transparent irregular. The recovery of diamonds of this size and quality from a 4.3 tonne sample is very encouraging.
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