Sample grade 2.81 carats per
tonne
Largest diamonds recovered: 4.72 carats,
4.28 carats, 3.45 carats
Shares Issued and Outstanding: 50,802,933
TSX-V: KDI
TORONTO, May 23, 2017 /CNW/ - Kennady Diamonds Inc.
("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to
announce diamond recovery results from its large diameter drilling
program on the Faraday 2 kimberlite. A total of 737.6 carats of
diamonds (+0.85mm) were recovered from 262.6 tonnes for a sample
grade of 2.81 carats per tonne. The result is similar to the
mini-bulk sample grade of 2.69 carats per tonne reported in 2016
(see news release, July 25,
2016). In this latest result, 45 diamonds of one
carat or greater were recovered of which 12 are described as white
in color. The largest stone is a 4.72 carat white/colorless
octahedron with minor inclusions. Table 1 below summarizes the
diamond recovery results from the 2017 Faraday 2 bulk sample.
Table 1 – Diamond recovery results from the winter 2017
Faraday 2 mini-bulk sample.
Kimberlite
|
Sample
Weight1
(dry
tonnes)
|
Number of Diamonds
per Square Mesh Sieve Division (mm)
|
Total
Stones
(+0.85mm)
|
Total
Carats
(+0.85mm)
|
Sample
Grade2
(ct/t)
|
+0.850
-1.180
|
+1.180
-1.700
|
+1.700
-2.360
|
+2.360
-3.350
|
+3.350
-4.750
|
+4.750
-6.700
|
+6.700
-9.500
|
Faraday
2
|
262.6
|
5,406
|
6,011
|
2,036
|
708
|
124
|
22
|
3
|
14,310
|
737.6
|
2.813
|
Notes: 1 –
Sample weight is calculated from measured drillhole
diameter and a model of kimberlite bulk
density. 2 – Includes two stones from the
+1.70mm, 21 stones from the +1.18mm and ten stones from +0.85mm
size class recovered during DMS circuit cleanup and totaling 0.78
carats. 3 – Sample grade is for diamonds greater than 0.85mm square
mesh. Rounding error may occur in the total carats and sample
grade.
|
President and CEO of Kennady Diamonds, Dr. Rory Moore commented: "We are delighted with
this excellent result from Faraday 2, as it confirms the high
diamond grade suggested by the 21 tonne mini-bulk sample completed
in 2016. Moreover, even with the limitation of the small
parcel size, the size distribution and quality characteristics of
the Faraday 2 diamonds are better than the diamonds recovered from
Kelvin to date. These results firmly support the potential
for Faraday 2 to add additional high-grade diamond resources to
those already established for the Kennady North Project."
The four largest diamonds recovered from the Faraday 2 bulk
sample are described by the SRC as:
- 4.72 carat white/colorless octahedron with minor
inclusions
- 4.28 carat off-white transparent octahedron with noticeable
inclusions;
- 3.45 carat brown transparent octahedron with noticeable
inclusions;
- 2.69 carat white/colorless, transparent tetrahexahedroid with
noticeable inclusions
Images of select diamonds from the 2017 Faraday 2 bulk sample
will be posted on the Company's website at www.kennadydiamonds.com
under the tab "Media Links".
The Faraday 2 kimberlite was sampled by large diameter reverse
circulation drilling, with the recovered material processed by
dense media separation ('DMS') at the Geoanalytical Laboratories
Diamond Services of the Saskatchewan Research Council ("SRC"). The
SRC is accredited by the ISO/IEC 17025 standard by the Standards
Council of Canada as a testing
laboratory for diamond analysis. As a measure of Quality Assurance
and Quality Control, a total of 51 laser-marked natural diamond
tracers ranging in size from 0.10 carat to 2.84 carat were added to
select sample bags at the SRC facility and 50 of the tracers were
recovered. The unrecovered spike weighed 0.13 carat.
Dr. Moore added: "The Faraday 2 diamond parcel is notably higher
in white diamonds compared to Kelvin, with the additional presence
of fancy yellow stones extending into the carater size range.
Moreover, the high quality white gem population observed at Kelvin
is well-represented at Faraday 2, with a higher incidence of
well-formed octahedral crystals in the larger size fractions."
Results from the Faraday 3 and 1 bulk samples are expected to be
available by mid-June, following which the services of WWW
International Diamond Consultants (Antwerp, Belgium) will be retained to provide
an independent valuation of the Faraday bulk sample diamonds
together with size frequency distribution and revenue models. This
work is expected to take place in July through early August.
About Kennady Diamonds
Kennady Diamonds Inc. controls
100 percent of the Kennady North diamond project located in
Canada's Northwest Territories. Kennady North is
adjacent to the Gahcho Kué Diamond Mine, a joint venture between De
Beers Canada (51%) and Mountain
Province (49%), which started production in late 2016.
Kennady is focused on expanding its high-grade diamond resources
along the Kelvin – Faraday kimberlite corridor, as well identifying
new kimberlites outside of the corridor. To date an indicated
resource of 13.62 million carats of diamonds contained in 8.50
million tonnes of kimberlite, with a grade of 1.60 carats per tonne
and an average value of US$63 per
carat has been defined for the Kelvin kimberlite using a 1mm
diamond bottom cutoff size. The Kelvin – Faraday corridor is also a
target for further exploration.
Qualified Persons
Mr. Howard
Coopersmith, a Professional Geologist and independent
consultant to the diamond industry, is the external Qualified
Person for sample processing and diamond recovery. This news
release has been prepared by Dr. Rory
Moore, P.Geo., President and CEO of Kennady Diamonds. The
technical contents of this news release have been reviewed and
approved by Mr. Coopersmith, and by 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.
SOURCE Kennady Diamonds Inc.