Kennady Diamonds Provides Kennady North Project Update

• Exploration camps open
• Geophysics underway
• Drilling to commence week of February 23, 2014
• 59 additional leases and claims acquired

Shares Issued and Outstanding: 22,857,675
TSX-V: KDI

TORONTO, Feb. 17, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) today announced that the two exploration camps at Kennady North (Bob Camp and Kelvin Camp) opened on February 7, 2014, with geophysics crews mobilized to site shortly afterwards. A range of geophysics programs, including ground-penetrating radar and Ohmmapper, are currently underway at both the Kelvin and Faraday kimberlites aimed at better defining the extent of the kimberlite emplacement prior to the start of the 2014 drill program. The geophysics crews will move to new kimberlite targets as soon as the Kelvin/Faraday geophysics program is completed. All the planned geophysics is expected to be completed by mid-March.

Mobilization of drill rigs, fuel and equipment on the seasonal ice road is underway and expected to be completed before the end of February. The planned plus 10,000 meter drill program is expected to commence next week and will focus initially on delineating the outer limits of the main Kelvin kimberlite, following which larger diameter drilling to recover the planned 25 to 30 tonne Kelvin mini-bulk sample will commence. Delineation and infill drilling is also planned for the Faraday kimberlite.  New kimberlite targets within and outside the Kelvin - Faraday kimberlite corridor will also be drill-tested. Regular updates on the drilling will be provided as soon as the results become available.

Kennady Diamonds is also pleased to announce that the Company has acquired 100-percent control over an additional 59 leases and claims to the west and south of the Kennady North project, thereby increasing the Company's diamond exploration land position in the Kennady district to approximately 61,000 hectares. Two diamond-bearing kimberlites, the Doyle kimberlite and MZ kimberlite, are located within the newly acquired exploration ground, which also hosts numerous untested kimberlite targets.

The Doyle kimberlite, located to the south-west of both the Kelvin - Faraday kimberlite corridor and the Gahcho Kué diamond mine (currently under development by De Beers and Mountain Province Diamonds) was first discovered in 1996. Past drilling defined an approx. 2 meter wide kimberlite striking at least 2 kilometers from south-west to north-east and down dip between 5 to 17 degrees to the north-west over a distance of approx. 1 kilometer. Initial testing of the Doyle kimberlite in only one location returned a modest sample grade, however the opportunity exists for more comprehensive exploration using techniques that aided in the discovery of the northwest lobe of the Kelvin kimberlite.

The MZ kimberlite is located to the west of the Kelvin - Faraday kimberlite corridor and was discovered in 2001. Past drilling has defined a kimberlite system trending over 1 kilometer and ranging in widths up to 3.2 meters. Previous wide-spaced drilling of the MZ kimberlite returned a high frequency of microdiamonds; in one case 28 microdiamonds from a 5 kilogram sample, and in the second case 9 microdiamonds from a 4 kilogram sample.

A comprehensive review of past exploration in the vicinity of the Doyle and MZ kimberlites is nearing completion and will aid in planning for the 2014 exploration program, which will start with the same geophysics being conducted at the Kelvin - Faraday kimberlite corridor. Depending on the results of the geophysics program, drilling of new targets at the Doyle and MZ kimberlites may commence this year.

Commenting, Kennady Diamonds CEO, Patrick Evans, said: "Our priority remains to define a diamond resource at the Kelvin - Faraday kimberlite corridor of between 5 and 8 million tonnes grading at least 2 carats per tonne. Advancements in diamond exploration techniques over the past decade open the potential for further kimberlite discoveries. To secure the Company's position we have acquired control over 59 additional leases and claims in the prolific Kennady diamond district, which will be the focus of an expanded exploration program this year".

A map detailing the Company's expanded exploration position in the Kennady district will be posted on the Company's website.

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.

Qualified Person
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.

Kennady Diamonds Inc.
Patrick Evans, President and CEO
[phone]

[email protected]