Shares Issued and Outstanding: 23,627,175
- Kelvin diagonal delineation hole intersects 85 meters of kimberlite
- 15,300 meters drilled to date: Target increased to 18,000 meters
- 27.3 tonnes of kimberlite recovered to date: Target increased to 30 tonnes
- Planning underway for 500 - 700 tonne Kelvin Bulk Sample
- Approx. 4.5 tonne Kelvin kimberlite sample to be processed prior to yearend
- Processing of till samples from 272 drill holes nearing completion
TORONTO, Oct. 14, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce that following the success of the ongoing Kelvin drill program the Company has increased its tonnage guidance for the Kelvin - Faraday kimberlite corridor from 7 -10 million tonnes to 9 - 12 million tonnes.
Commenting, Kennady Diamonds CEO Patrick Evans said: "The Kelvin drill program has delivered results well beyond our expectations. After three months of drilling this summer/fall, we have increased the strike of the Kelvin kimberlite pipe to over 600 meters. As we have moved north, delineation drilling has confirmed that the vertical and horizontal dimensions of the pipe are increasing. Besides the increasing volume, the Kelvin pipe remains open on strike to the north and we have yet to find the feeder pipe to the Kelvin - Faraday kimberlite complex."
The above tonnage estimate is based on the drilling completed to date. The potential quantity is conceptual in nature as drilling at the Kelvin - Faraday kimberlite complex is still underway and a mineral resource will only be defined once the Kelvin kimberlite has been further delineated. Based on the continuing success, the Company now expects to declare a maiden mineral resource in 2015.
Since the completion last month of the northerly delineation drill hole KDI-14-055, which intersected 215 meters of kimberlite, seven diagonal delineation drill holes have been completed along the strike of the Kelvin pipe, which are detailed in Table 1 below.
Kelvin 2014 Fall Delineation Drill Program
|Drill Hole||Target||Azimuth||Inclination|| Kimberlite Intercepts (m)
| End of
| *Includes minor country rock intercepts
**Hole KDI-14-059b ended in kimberlite at 388 meters due to ground conditions
***Intersects in sub-vertical holes not true widths
The completion of the above diagonal delineation holes facilitated the positioning of the next "fan" of northerly drill holes, the first of which (KDI-14-033a) is currently underway, having intersected kimberlite over more than 170 meters from a depth of approximately 190 meters. This drill hole remains in kimberlite at a depth of approximately 360 meters as drilling continues.
In view of the exceptional progress that has been made with drilling at the Kelvin kimberlite, construction of an advanced exploration camp at Kelvin Lake has commenced. The Kelvin Camp, which is expected to be operational within a month, will support year-round drilling at the Kelvin - Faraday kimberlite corridor, including the continuation of the current drill program. Bob Camp, which is approximately 20 kilometers to the west of Kelvin Camp, will continue to serve as the regional exploration camp for the Kennady North project.
With access to the advanced exploration camp at Kelvin, the Company is pleased to also announce that it is currently planning to accelerate the bulk sampling of the Kelvin kimberlite, which is expected to commence in early 2015. The potential for a 500 to 700 tonne bulk sampling program by large-diameter reverse-circulation (RC) drilling is under consideration. Further details will be provided in due course.
To date, approximately 15,300 meters has been drilled at the Kelvin kimberlite as part of the 2014 summer/fall drill program. Based on the continuing success, the Company's target has now been increased to 18,000 meters. In addition, approximately 27.3 tonnes of kimberlite has been recovered from Kelvin and the Company has now increased its target to 30 tonnes.
During the summer/fall Kelvin drill program, approximately 4.5 tonnes of kimberlite was been recovered by NQ drilling. Most of the Kelvin mini-bulk sample has been recovered by larger diameter HQ drilling. While mini-bulk sample drilling at Kelvin continues, the approx. 4.5 tonne NQ sample is being prepared for shipment to Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC") for processing by caustic fusion. The diamond recovery results from this sample are expected before the end of the year.
Finally, the Company is pleased to announce that the processing of basal till samples from 272 reverse-circulation holes drilled across the 61,000 hectare Kennady North project is nearing completion. It is expected that these results, combined with extensive geophysics conducted over the past two years, will enable Kennady Diamonds to refine its exploration program across the entire Kennady North 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 define a resource along the Kelvin - Faraday kimberlite corridor of between 9 and 12 million tonnes at a grade of more than 2 carats per tonne 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.
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