Kennady Diamonds Updates Kelvin Kimberlite Drilling

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TSX-V: KDI

TORONTO, March 17, 2014 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to provide an update on resource drilling at the Company's 100-percent controlled Kennady North diamond project located in Canada's Northwest Territories.

Infill and delineation drilling at the Kelvin kimberlite is progressing on schedule with ten drill holes completed to date. The drill program is designed to increase the level of confidence in the dimensions of the Kelvin kimberlite main body and northwest lobe prior to the commencement of larger diameter drilling to recover the planned 25 to 30 tonne mini-bulk sample. Two drill rigs are currently operating and a third larger diameter drill rig is expected to commence bulk sample drilling shortly.

Table 1 below details the latest drill results.

Table 1

*Not true widths
**Includes minor country rock intercepts

A total of approximately 1,500 meters has been drilled to date out of a planned 10,000 meter drill program. Approximately 444 meters of kimberlite, weighing approximately 1.85 tonnes, has been recovered from the first ten drill holes. Commenting, Kennady Diamonds CEO, Patrick Evans, said: "Our 2014 winter drill program has made a strong start. The current drilling is providing confirmation of the dimensions of the high grade Kelvin kimberlite and increasing our confidence in the geological model".

Mr. Evans added: "Preliminary interpretation of results from our ground geophysics program at the Kelvin - Faraday kimberlite corridor is also producing exciting results. It appears that the prospect of further kimberlite discoveries within the corridor exists and that the kimberlite emplacement within the corridor may extend beyond the currently defined Kelvin and Faraday kimberlites. Subject to confirmation of these preliminary results, drill testing of new targets within the corridor may occur."

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.