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Toronto, Ontario, December 16, 2014 – Kennady Diamonds Inc. (“Kennady Diamonds”, the “Company”)
(TSX-V: KDI) is pleased to announce that the latest Kelvin delineation drill hole (KDI-14-065) intersected kimberlite approx. 50 meters to the north of drill hole KDI-HQ14-033a, the last -90 degree (vertical) Kelvin delineation hole, where kimberlite was intersected over approx. 194 meters.
Kennady Diamonds CEO Patrick Evans commented: “We are pleased to have intersected the Kelvin kimberlite beyond drill hole 033a. We had delineated the Kelvin pipe-like body over a strike of approx. 610 meters up to 033a. Drill hole KDI-HQ14-033b, which was drilled at -80 degrees to the north of 033a, returned only narrow kimberlite intersects leading us to believe that the pipe was trending either to the NNW or NNE and that we had drilled over the top of the kimberlite. Drill hole KDI-14-065, which was drilled from east to west, indicates that the Kelvin pipe may be trending to the NNW rather than to the NNE. Recently completed ground geophysics supports this view.”
Table 1 below provides details of drill hole KDI-14-065.
Kelvin 2014 Fall Drill Program
|Drill Hole||Target||Azimuth||Inclination||Kimberlite Intercepts (m)
down in kimberlite
Mr. Evans added: “Drill hole KDI-14-065 intersected kimberlite at approx. 390 meters vertical below surface, which corresponds with the lower intercepts in drill hole KDI-HQ14-033a. Due to difficult ground conditions, including caving in the hole, drilling was stopped in kimberlite at approx. 442 meters downhole. Based on this, we believe that hole 065 “clipped” the lower portions of the Kelvin pipe. The rig has now been moved to a location to the west of Kelvin and the next hole will be drilled to the NW when drilling recommences in January.”
A total of approx. 27,200 meters has been drilled at the Kelvin – Faraday kimberlite corridor in 2014 resulting in the recovery of approx. 55 tonnes of kimberlite. Four tonnes of kimberlite from Kelvin is currently being processed by caustic fusion at the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council (“SRC”) and one tonne is being processed at the Rio Tinto diamond laboratory in Thunder Bay, Ontario. A further 20 tonnes of Kelvin kimberlite is currently being processed through the dense media separation plant at the SRC. The diamond recovery results from most of these samples are expected prior to the end of the year.
As a result of a review by the staff of the Ontario Securities Commission, Kennady Diamonds is retracting and clarifying disclosure in a recent corporate presentation. The presentation presented projections of tonnage and grade potential of the Kelvin – Faraday kimberlite corridor, which is a target for further exploration and not a mineral resource. These projections should have been provided within a range for tonnage and grade as well as cautionary language. In addition, the Kelvin – Faraday projections were compared to the mineral resource estimates for more advanced projects. The Kelvin – Faraday tonnage and grade projections are now provided on a stand-alone basis and will not be compared to more advanced projects.
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 define a resource along the Kelvin – Faraday kimberlite corridor of between 9 and 12 million tonnes at a grade of between 2 and 2.5 carats per tonne 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.
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.
For further information, please contact:
Kennady Diamonds Inc.
Patrick Evans, President and CEO (416) 640-1111
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