TORONTO, Dec. 1, 2015 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI) is pleased to announce the successful conclusion of the 2015 field program at the 100 percent controlled Kennady North project with the completion of more than 33,400 meters of drilling. Highlights of the 2015 exploration program include the discovery of two pipe-like kimberlites at Faraday 1 and Faraday 2, as well as confirmation of continuity of the strike of the Kelvin kimberlite beyond the current geological model.
Kennady Diamonds President and CEO Patrick Evans commented: "We are very pleased with the excellent progress made at Kennady North during our most active year since the start of exploration in 2012. The results of the Kelvin bulk sample confirm that Kelvin has the potential to host a large, high-grade diamond deposit. Preparation of the maiden NI 43-101 resource statement is underway and expected to be completed shortly. A high point of the 2015 exploration season was the discovery of two pipe-like kimberlite bodies at Faraday 1 and 2.
Techniques that supported the discovery of these two kimberlite pipes are expected to aid in the discovery of further pipe-like bodies within the Kelvin–Faraday corridor when drilling resumes in early 2016."
The focus of core drilling and bulk sampling during 2015 was the Kelvin–Faraday kimberlite corridor. A 443 tonne bulk sample was recovered from the Kelvin Southeast Lobe and returned an average grade of 2.02 carats per tonne.
In addition, approx. 12,600 meters of core drilling was completed at the Kelvin pipe, 1,400 meters at the Kelvin sheet, 10,700 meters at Faraday 2 and 2,370 meters at Faraday 1.
The following samples, recovered by core drilling during the summer/fall of 2015, have been delivered to the Geoanalytical Laboratories Diamond Services of the Saskatchewan Research Council ("SRC") for processing by caustic fusion:
- 2.76 tonnes from Kelvin North Lobe (processing approx. 80 percent complete);
- 2.28 tonnes from Kelvin North Lobe (processing approx. 45 percent complete);
- 0.93 tonnes from Faraday 2;
- 1.89 tonnes from Faraday 2;
- 1.33 tonnes from Faraday 2; and
- 0.55 tonnes from Faraday 1.
Since the start of exploration at the Faraday kimberlites, approx. 2 tonnes of kimberlite has been processed by caustic fusion at the SRC returning a sample grade of 3.32 carats per tonne for diamonds of commercial size.
The processing of a further 4.5 tonnes from Faraday 2 and 0.55 tonnes from Faraday 1 will increase confidence in the grade potential. These results are expected in Q1 2016.
Outside the Kelvin–Faraday corridor, 1,300 meters of drilling was completed at the MZ kimberlite and 940 meters at the Doyle kimberlite.
Core recovered from the MZ kimberlite will also be processed by caustic fusion at the SRC and the results will also be released in Q1 2016.
Based on the success of the Kelvin Southeast Lobe bulk sample, planning is underway to recover an approximate 500 tonne bulk sample from the North Lobe in Q1 2016, with results expected by mid-2016. The combined bulk samples are expected to provide a sufficiently large diamond parcel to support revenue modeling for the Kelvin kimberlite.
Subject to the successful completion of the North Lobe bulk sample, the Company also plans to recover an approx. 200 tonne bulk sample from the Faraday 2 kimberlite.
In addition to further bulk sampling and core drilling, Kennady Diamonds will commence a preliminary economic assessment ("PEA") in early 2016 for the planned "first mine" at Kelvin. The PEA will provide the project description necessary to file an application during H2 2016 for a Class A water license.
Subject to the results of the PEA, Kennady Diamonds plans to commence a definitive feasibility study for Kelvin during H2 2016.
Mr. Evans concluded: "The achievements of 2015 have laid the groundwork for an exciting field program at Kennady North during 2016.
Thanks to the successful completion of the recent $48 million non-brokered private placement, Kennady is fully funded to the end of 2017 at which time we expect to be a in a position to make a decision to build the first mine at Kelvin