Kelvin-Faraday Tonnage Estimate Increased
Shares Issued and Outstanding: 23,627,175
TORONTO, Feb. 12, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds," the "Company") (TSX-V: KDI) is pleased to announce that kimberlite has been intersected over 54.5 meters in the latest Kelvin delineation drill hole KDI-15HQ-001b. This encouraging intersect is located approx. 50 meters to the NW of drill hole KDI-HQ14-033a, the last vertical Kelvin delineation hole, where kimberlite was intersected over approx. 194 meters, and confirms the continuity of the strike of the Kelvin kimberlite to over 660 meters.
Kennady Diamonds CEO Patrick Evans commented: "We are very pleased to have intersected the Kelvin kimberlite approx. 50 meters to the NW of drill hole 033a. We had delineated the Kelvin pipe-like body over a strike of approx. 610 meters up to 033a. Drill hole KDI-15HQ-001b, drilled across the pipe from southwest to northeast, now confirms the continuity of Kelvin's strike to over 660 meters."
Table 1 below provides details of drill hole KDI-15HQ-001b.
Kelvin 2015 Winter Drill Program
Kimberlite Intercepts (m)
*Includes minor country rock intercept
**Intersects in sub-vertical holes not true widths
Mr. Evans added: "Preparations are now underway to drill a vertical delineation hole above the intersect achieved in 001b. Based on drilling up to the end of 2014 we had estimated the tonnage potential of the Kelvin – Faraday kimberlite corridor at between 9 million and 12 million tonnes. This latest intersect gives us the confidence to now increase our tonnage estimate to between 10 million and 13 million tonnes."
Preparations are also underway to recover a 500 to 700 tonne bulk sample from the Kelvin kimberlite by large diameter drilling while we continue delineation drilling at the Kelvin and Faraday kimberlites. It is expected that diamonds weighing more than 1,200 carats will be recovered from the bulk sample, which will be used for revenue modeling of the Kelvin kimberlite. We also look forward to commencing exploration drilling at the diamond-bearing MZ and Doyle kimberlites as well as a number of new exploration targets.
Up to the end of 2014 Kennady Diamonds had recovered a total of 53.15 tonnes of kimberlite from Kelvin by drilling. Processing by dense media separation and caustic fusion methods yielded 124.90 carats greater than 0.85mm. The largest diamond recovered from that sample weighed 2.48 carats.
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 10 and 13 million tonnes at a grade of between 2 and 2.5 carats per tonne and also to identify new kimberlites outside of the corridor. The Kelvin – Faraday kimberlite 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 whether 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, (416) 640-1111, [email protected]