Shares Issued and Outstanding: 18,700,469
TORONTO, Feb. 4, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that plans for the Kennady North winter drill program have reached an advanced stage. Since the completion of the 2012 summer drill program, the Company's geological and geophysical consultant, Aurora Geosciences Ltd ("Aurora"), has completed a comprehensive review and analysis of the exploration data for the 123 square-kilometer property. The results of the review have guided preparations for the Company's planned 5,000-meter winter drill program, which is scheduled to commence next month.
Mobilization to a satellite exploration camp at Kennady North will commence this week to complete further ground gravity and horizontal-loop electromagnetic (HLEM) surveys over the Kelvin - Faraday kimberlite corridor. This program is expected to take approximately four weeks and data from these surveys will assist the Company in selecting final drill targets.
Following completion of the surveys, supplies will be mobilized to the main exploration camp at Kennady North in preparation for the commencement of drilling at the Kelvin - Faraday corridor. The Kelvin - Faraday drill program will comprise both infill drilling at the known kimberlites as well as testing of newly identified kimberlite targets within the corridor that are in close proximity to the known kimberlites.
Following the commencement of drilling at Kelvin - Faraday, ground gravity and HLEM surveys will be completed over fifteen newly identified kimberlite targets outside and to the west of the corridor. Drilling of these targets is expected to commence at the beginning of April and should be completed by mid-May.
Patrick Evans, Kennady Diamonds President and CEO, said: "Diamond recovery results from the Kelvin-Faraday kimberlite cluster confirm the potential to host a high grade diamond resource. Besides the high diamond count, approximately 70 percent of the recovered diamonds are classified as white and transparent. A further 5 percent of the diamonds are classified as yellow and transparent. Almost all the diamonds have either no inclusions or only minor inclusions. Together with grade, these characteristics are key value drivers."
Mr. Evans added: "Our goal is to identify an initial resource along the Kelvin - Faraday kimberlite cluster of at least 5 million tonnes and then to add to that with new kimberlite discoveries at Kennady North".
About Kennady Diamonds
Kennady Diamonds controls 100 percent of the Kennady North project which comprises thirteen leases and claims located to the west and north 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.
Exploration at Kennady North resulted in the discovery of the diamond-bearing Kelvin, Faraday and Hobbes kimberlites. The number of diamonds recovered from these kimberlites and the size-frequency distribution indicate that they may be of comparable grade to the 5034 (1.77 carats per tonne) and Hearne (2.10 carats per tonne) kimberlites at the Gahcho Kué JV. Exploration samples from Kelvin and Faraday returned a relatively large number of macro diamonds with the two largest being a 0.4 carat diamond from Faraday and a 0.09 carat diamond from Kelvin.
The known kimberlites at Kennady North do not explain all the kimberlitic indicators previously recovered from glacial till sampling. Exploration at Kennady North recommenced in 2011 with a 50-meter line-spacing airborne gravity gradiometry (AGG) survey over the entire 123.6 square kilometer project area. The survey identified 106 geophysical targets. A 560-line-kilometre total magnetic field (MAG) ground survey over all 106 geophysical targets identified by the AGG survey was completed in 2012. Besides infill drilling at the Kelvin - Faraday kimberlites, approximately 20 additional kimberlite targets will be drilled in the next three months.
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