Planning underway for second phase winter drill program
Shares Issued and Outstanding: 16,143,112
TORONTO, Aug. 7, 2012 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that a second drill hole at Kelvin Lake has intersected kimberlite over approximately 32 meters from a down-hole depth of approximately 104 meters to approximately 136 meters. This inclined hole was drilled from the northwest shore of Kelvin Lake at an angle of approximately minus 60 degrees to the east-southeast.
Patrick Evans, Kennady Diamonds President and CEO commented: "We are very pleased that we have intersected kimberlite in four holes along the Kelvin - Faraday kimberlite corridor. These drill holes, together with previous drill holes, will contribute to our understanding of the size, shape and structure of the kimberlite corridor and will assist us in planning the all-important winter drill program scheduled to commence early next year."
Mr. Evans added: "Seven geophysical targets - the majority land-based - to the north and west of the Kelvin - Faraday corridor were also tested but kimberlite was not intersected at any of those targets. More than twenty newly discovered geophysical targets remain to be tested. Most of these targets are lake-based and can only be drilled from ice, which we plan to do next winter. Kennady Diamonds is currently completing bathymetry, considered a priority in establishing kimberlite targets within lakes, at all of the lake-based targets that will be drilled next winter."
Kimberlite recovered during the Kennady North summer drill program will be sent to the Saskatchewan Research Council analytical laboratory for microdiamond testing by caustic fusion. The results will be released as soon as they become available.
Mr. Evans concluded: "Our vision is to define a resource of at least 5 million tonnes along the Kelvin -Faraday kimberlite corridor, which is located only 9 kilometers northeast of the Gahcho Kué diamond mine currently being permitted by De Beers Canada and Mountain Province Diamonds. Diamonds recovered from previous drilling indicate the Kelvin - Faraday kimberlites have a grade potential similar to the Hearne (2.10 carats per tonne) and 5034 (1.77 carats per tonne) kimberlites at Gahcho Kué. We have made an encouraging start to our exploration program and expect that our upcoming winter drill program will bring us closer to fulfilling our vision".
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 commenced in the late 1990's and 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.
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. Mountain Province recently completed a 560-line-kilometre total magnetic field (MAG) ground survey over all 106 geophysical targets identified by the AGG survey. The 39 high priority targets identified through the AGG and MAG surveys will be tested as part of the 2012 summer drill program and planned 2013 winter drill program (approximately 20 drill targets).
This news release has been prepared under the supervision of Gary Vivian, M.Sc., P.Geol., 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