Kennady Diamonds Inc. Advances Kennady North Project
- Faraday 3 Drilling Continues to Deliver Excellent Results- Faraday 2 Mini-Bulk Sample Completed
- Kelvin North Lobe Bulk Sample Completed
TORONTO, April 25, 2016 - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the successful completion of the Kelvin North Lobe bulk sampling program. Twenty nine large-diameter reverse-circulation (RC) holes were completed along the strike of the Kelvin North Lobe resulting in the recovery of approximately 580 tonnes of kimberlite, surpassing the Company's 500 tonne target.
In addition, three ice-based infill large-diameter RC holes have been completed at the Kelvin Southeast Lobe. These holes are designed to support improved geological modeling.
Kennady Diamonds is also pleased to announce that the Company has been able to recover a mini-bulk sample of approximately 20 tonnes from the Faraday 2 kimberlite. Drilling of two ice-based holes by large-diameter RC drilling has been completed.
Warming weather conditions have required the Company to end the Faraday 2 sampling program. The Company will now focus on completing as much ice-based core drilling as possible.
In addition to the RC drilling, Kennady Diamonds is currently operating three diamond core drill rigs, focused on delineation and infill drilling at the Faraday 1 and Faraday 3 kimberlites and exploration drilling at the Hobbes anomaly.
Table 1 below summarizes the latest Faraday 3 drill results.
Table 1
Faraday 3 2016 Winter Drill Program
| Drill Hole | Target | Azimuth | Inclination | Kimberlite Intercepts (m) | End of Hole (m) | ||
| From | To | Intercept* | |||||
| KDI-16-015a | Faraday 3 | 300 | -89 | 137.30 | 154.10** | 11.20 | 184 |
| KDI-16-015b | Faraday 3 | 49 | -82 | 113.00 | 153.50 | 40.50 | 183 |
| KDI-16-015c | Faraday 3 | 50 | -70 | 102.00 | 148.00 | 46.00 | 184 |
| KDI-16-015d | Faraday 3 | 48 | -62 | 121.00 | 153.50 | 32.50 | 191 |
| *Intercepts not true widths |
Infill drilling at the Faraday 1 kimberlite resumed following the demobilization of the first of the two RC rigs. The focus at Faraday 1 is ice-based infill drilling. Table 2 below summarizes the latest Faraday 1 drill results.
Table 2
Faraday 1 2016 Winter Drill Program
| Drill Hole | Target | Azimuth | Inclination | Kimberlite Intercepts (m) | End of Hole (m) | ||
| From | To | Intercept* | |||||
| KDI-16-014a | Faraday 1 | 47 | -46 | 108.00 | 139.00** | 23.35 | 172 |
| KDI-16-014b | Faraday 1 | 47 | -56 | 99.96 | 127.10** | 24.94 | 163 |
| KDI-16-014c | Faraday 1 | 213 | -89 | 83.10 | 113.00 | 29.90 | 157 |
| KDI-16-017a | Faraday 1 | 231 | -44 | 103.20 | 157.60** | 51.10 | 187 |
| KDI-16-017b | Faraday 1 | 229 | -65 | 101.00 | 106.00 | 5.00 | 139 |
| *Intercepts not true widths |
| ** Includes minor country rock intercepts |
Kennady Diamonds is also continuing ice-based exploration drilling at the Hobbes anomaly, which is located approximately 150 meters south of the Kelvin kimberlite. Hobbes was initially thought to be part of the hypabyssal Kelvin Sheet that extends to the southwest of the Kelvin pipe. However, the presence of volcaniclastic kimberlite was discovered at Hobbes during the winter of 2015, warranting further exploration. Table 3 below summarized the latest Hobbes drill results.
Table 3
Hobbes 2016 Winter Drill Results
| Drill Hole | Target | Azimuth | Inclination | Kimberlite Intercepts (m) | End of Hole (m) | ||
| From | To | Intercept* | |||||
| KDI-16-018a | Hobbes | 131 | -50 | 37.00 | 44.10 | 7.10 | 85 |
| KDI-16-018b | Hobbes | 131 | -70 | 31.67 | 42.05** | 3.89 | 73 |
| KDI-16-019a | Hobbes | 130 | -50 | 35.08 | 45.16** | 6.68 | 79 |
| KDI-16-019b | Hobbes | 130 | -70 | 33.55 | 46.00** | 9.05 | 79 |
| KDI-16-019c | Hobbes | 130 | -90 | 43.00 | 54.00 | 11.00 | 76 |
| *Intercepts not true widths |
| ** Includes minor country rock intercepts |
Mr. Evans commented: "Our focus at the Hobbes anomaly is to find the source of the volcaniclastic kimberlite. Exploration drilling will continue while ice conditions permit."
Based on the success of the 2016 Kelvin bulk sampling program, it is expected to that diamonds weighing more than 1,200 carats will be recovered. Processing of the bulk sample will take place at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC") commencing in mid-May 2016. The valuation of the diamond parcel, which will be used for revenue modeling of the Kelvin North Lobe, is expected to be completed during Q3 2016.
About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North diamond project located in Canada's Northwest Territories immediately adjacent to the Gahcho Kué diamond mine currently under development by De Beers and Mountain Province Diamonds (T:MPV, NASDAQ:MDM).
Kennady Diamonds aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between 13 million and 16 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 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 if further exploration will result in the target being delineated as a mineral resource.
Qualified Persons
This news release has been prepared under the supervision of Dr. Tom McCandless, P. Geo., an independent director of Kennady Diamonds and 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.
Shares Issued and Outstanding: 46,906,970
Contact
Kennady Diamonds Inc.
Patrick Evans, President and CEO
(416) 640-1111
investor@kennadydiamonds.com