Kennady Diamonds Inc. (
TSX: V.KDI,
Stock Forum) shares have gained some sparkle after the company said more kimberlite has been intersected on a diamond property in Canada’s Northwest Territories.
The stock is up 3% to $3.40 this week, leaving a market cap of $97 million, based on 28,6 million shares outstanding.
The company's exploration focus is the 100% controlled Kennady North project, located immediately adjacent to the Gahcho Kue diamond mine, which is being developed by the
De Beers Canada and
Mountain Province Diamonds Inc. (
TSX: T.MPV,
Stock Forum).
The Kennady North project hosts four known kimberlites – Kelvin, Faraday, Doyle and MZ—as well as numerous other geophysical exploration targets, the company has said.
Kimberlites are carrot-shaped geological structures that sometimes contain diamonds, and in some rare occasions, in commercial quantities.
On March 18, the company said kimberlite has been intersected over approximately 32 meters in the first of 14 drill holes planned for a spring delineation program.
The company followed that up on Tuesday by announcing that kimberlite has been intersected over 37 meters in a single drill hole located approximately 30 metres to the northwest of the discovery holes at an area known as Faraday 2.
“This is an exciting development. Drill results from the first four delineation holes at Faraday 2 indicate that the kimberlite is trending on strike to the northwest,” said Kennady Diamonds CEO Patrick Evans. “We ’re also very encouraged by the good widths of the intersection,” he said.
“We plan to continue testing the continuity of Faraday 2 further to the northwest and will also test the continuity to the southeast of the discovery holes.”
Up to the end of 2014, Kennady Diamonds has recovered approximately one tonne of kimberlite via drilling.
Processing of the Faraday core samples by caustic fusion at laboratories in Saskatchewan yielded 4.76 carats greater than 0.95 millimetres, with a resultant commercial sample grade of 4.54 carats per tonne.
The company has said it aims to identify a resource along the Kelvin – Faraday kimberlite corridor of between 10 and 13 million tonnes at a grade of between 2 and 2.5 carats per tonne and also to identify new kimberlites outside the corridor.