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Kennady Diamonds Announces Exceptional Kelvin North Sample Grade of 3.40 carats per tonne

December 7, 2015
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TORONTO , Dec. 7, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (KDI.V) is pleased to announce the final diamond recovery results from a Kelvin 2.67 tonne sample recovered by core drilling at the Kelvin North Lobe. The sample was processed by caustic fusion at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC") and returned an exceptional sample grade of 3.40 carats per tonne for diamonds of commercial size.

Kennady Diamonds President and CEO Patrick Evans commented: "Kelvin North Lobe drill samples continue to return outstanding diamond recovery results. Over the course of 2015 we have processed by caustic fusion a total of 12.8 tonnes of core samples from the Kelvin North Lobe, which have returned an average sample grade of 2.79 carats per tonne. These results correspond well with a December 2014 North Lobe mini-bulk sample processed by dense media separation at the SRC, which returned a grade of 2.59 carats per tonne."

Mr. Evans added: "Planning is now well underway to recover an approximate 500 tonne bulk sample from the North Lobe in February/March next year, with results expected by mid-2016. The bulk sample is expected to deliver more than 1,200 carats to support revenue modeling for the Kelvin kimberlite."

Table 1 below summarizes caustic fusion diamond recovery results from the Kelvin North Lobe 2015 2.67 tonne sample.

Table 1 – Kelvin North Lobe 2015 Spring Caustic Fusion Diamond Recovery Results

Sample Weight

(dry tonnes)

Number of Diamonds According to Sieve Size Fraction (mm)

Total Diamonds

Carats
(+0.85mm
sieve size)

+0.106 -0.150

+0.150 -0.212

+0.212 -0.300

+0.300 -0.425

+0.425 -0.600

+0.600 -0.850

+0.850 -1.180

+1.180 -1.700

+1.700 -2.360

+2.360 -3.350

+3.350 -4.750

+4.750

7,124

9.1039

2.674

2,608

1,811

1,096

719

421

259

125

53

21

8

3

0

*Sample grade of diamonds greater than 0.85mm: 3.40 carats per tonne

The three largest diamonds recovered from the Kelvin North Lobe sample are described as:

  • 0.74 carat off-white, transparent broken aggregate with inclusions;
  • 0.63 carat brown, transparent octahedral with no inclusions; and
  • 0.45 carat off-white, transparent broken dodecahedral with minor inclusions.

Processing of the 2.67 tonne Kelvin North Lobe sample clears the way to complete grade modeling for the NI 43-101 Kelvin resource statement currently in preparation. Very high diamond counts from the latest sample resulted in a delay in finalization of results as individual diamonds are weighed and described. As a result, the NI 43-101 report is now expected to be released in early 2016.

In early 2016, diamond recovery results will also be released for the following samples that have been delivered to the SRC:

  1. 2.28 tonnes from Kelvin North Lobe;
  2. 4.15 tonnes from Faraday 2 (in thee batches); and
  3. 0.55 tonnes from Faraday 1.

Mr. Evans concluded: "Following the recent closing of a $48M non-brokered private placement, Kennady Diamonds is fully funded to the end of 2017 when we expect to be in a position to make a decision to build the first mine at Kelvin."

****

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 a 13 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 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.

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