Kennady values 989-carat parcel from Kelvin sampling
2015-10-19 16:40 ET - News Release Shares issued 46,906,970 KDI Close 2015-10-16 C$ 2.95 Mr. Patrick Evans reports KENNADY DIAMONDS ANNOUNCES KELVIN DIAMOND VALUATION RESULTS Kennady Diamonds Inc. has released the results of a preliminary valuation of diamonds recovered from the Kelvin kimberlite at the 100-per-cent-controlled Kennady North project located in Canada's Northwest Territories. Kennady Diamonds retained the services of WWW International Diamond Consultants to value and model a diamond parcel weighing 989 carats recovered from bulk sampling of the Kelvin kimberlite. The valuation took place in Antwerp, Belgium, on Sept. 9 and 10, 2015. Howard Coopersmith, PGeo, an independent consultant to the diamond industry and the company's independent external qualified person, was present throughout the valuation. Four separate diamond parcels were valued by WWW, representing Zone A (442.82 carats), Zone B (447.05 carats), Zone C (80.44 carats) and a small mixed parcel (16.79 carats). For Zone A, WWW has recommended using an average modelled price of $56 (U.S.) per carat and for Zone B $70 (U.S.) per carat. The parcel from Zone C was too small for WWW to create modelled values, so an average price of $123 (U.S.) per carat was reported. It is not yet possible to report an average modelled value for the composite Kelvin kimberlite due to the small size of the Zone C parcel. Kennady Diamonds president and chief executive officer Patrick Evans commented: "We are very pleased with the results which confirm that Kelvin hosts a population of high-value-gem-quality white diamonds. These good results were achieved despite the valuation being done at a challenging time with the rough diamond price index at multiyear lows." WWW noted, "While there are only 88 diamonds greater than 0.66 carat per stone in the combined parcel, it is encouraging to see so many good-colour white gemstones especially in the C sample, with five of the eight stones being good colour and gem quality." The three highest-value diamonds are: a 4.22-carat diamond from Zone B valued at $1,603 (U.S.) per carat, a 2.58-carat diamond from Zone C valued at $1,366 (U.S.) per carat and a 2.38-carat diamond from Zone C valued at $1,196 (U.S.) per carat. Photographs of the diamonds valued by WWW have been posted on the company's website. Mr. Coopersmith noted: "An encouraging proportion of the larger-gem-quality diamonds show very high colour and clarity characteristics. Recovering stones of this quality in small parcels lends one to get excited about seeing larger parcels. Further bulk sampling is clearly warranted." Mr. Evans added: "The Kelvin diamond prices reported are comparable to those reported from the neighbouring Gahcho Kue diamond mine when the rough diamond price index was at a comparable level. This is very encouraging, particularly as Gahcho Kue is widely recognized as the world's highest-margin new diamond mine. Based on these positive results, we are now proceeding with preparations to take a further 500-tonne bulk sample from the Kelvin North lobe during the winter of 2016." Modelling to date indicates that the Kelvin kimberlite body consists of three geologically distinct zones. Based on the diamond sample values per size class and the quality breakdown analysis, WWW found consistency in the quality and value of the diamonds across the three geological zones. However, WWW has recommended further sampling to confirm this. Mr. Evans concluded: "It's generally accepted that approximately 2,000 carats are required for reliable revenue modelling. With the 500-tonne bulk sample planned for next winter, we expect to more than double the size of the Kelvin diamond parcel to more than 2,000 carats. This will enable us to complete revenue modelling for the planned Kelvin feasibility study." Qualified person This news release has been prepared under the supervision of Mr. Coopersmith, PGeo, an independent consultant to the diamond industry and the company's independent external qualified person for sample processing and diamond recovery. We seek Safe Harbor.