$1.5M Private Placement Closes
Shares Issued and Outstanding: 19,693,609
TSX-V: KDI
TORONTO, Aug. 21, 2013 /CNW/ - Kennady Diamonds Inc. ("Kennady Diamonds", the "Company") (TSX-V: KDI)
is pleased to announce that over 80 meters of kimberlite has been
intersected in step-out drilling along strike to the north-west of the
main Kelvin kimberlite. The step-out drilling, which is taking place
approximately 50 meters to the north-west of Kelvin Lake, is increasing
our confidence in the tonnage potential of the Kelvin kimberlite. Table
1 below details recent drill results.
Table 1
Drill Hole
|
Target
|
Azimuth
|
Inclination
from
Horizontal
|
Kimberlite Intercepts (m)
Approximate
|
End of
Hole (m)
|
From
|
To
|
Intercept*
|
KDI-13-037
|
Kelvin
|
035
|
-45
|
62.00
|
66.00
|
4.00
|
109
|
KDI-13-038
|
Kelvin
|
035
|
-60
|
61.00
|
99.12
|
38.12
|
139
|
KDI-13-039
|
Kelvin
|
035
|
-75
|
75.02
|
155.73
|
80.71
|
166
|
*Not true widths
Patrick Evans, Kennady Diamonds CEO, commented: "We are very encouraged
that the step-out drilling continues to intersect kimberlite well to
the north-west of the main Kelvin kimberlite body. The delineation and
infill drilling is contributing to our understanding of the kimberlite
structure and geology and should enable us to develop 3D models of the
kimberlite. Delineation drilling to determine the limits of the
kimberlite emplacement the north-west of the main Kelvin body is
continuing."
Based on the success to date of the summer drill program, Kennady
Diamonds has decided to extend the drill program beyond the original
planned 2,500 meters to as much as 3,000 meters. The current summer
drill program is expected to result in the recovery of more than 2,000
kilograms of kimberlite, which is double the 1,103 kilograms recovered
during last winter's 5,000 meter drill program. This reflects the high
success rate of the current drill program. At the conclusion of the
drill program in September, the recovered kimberlite will be dispatched
to the Geoanalytical Laboratories Diamond Services at the Saskatchewan
Research Council for recovery of diamonds by caustic fusion.
Mr. Evans concluded: "We expect to release diamond recovery results
early in the fourth quarter. The additional data will facilitate
progress towards the first resource statement for the Kennady North
project and also add significantly to our diamond data base".
Kennady Diamonds also confirmed the closing of the previously announced
non-brokered private placement of flow-through and non-flow-through
common shares, for gross proceeds of $1.5 million. The Company has
issued 34,300 flow-through common shares at a price of $1.80 per share
and 958,840 non-flow-through common shares at a price of $1.50 per
share. The shares are subject to a four month hold period, expiring on
December 15, 2013. Proceeds of the private placement will be used
primarily for the Company's ongoing summer drill program at Kennady
North and for working capital.
****
About Kennady Diamonds
Kennady Diamonds Inc. controls 100 percent of the Kennady North project
which comprises thirteen leases and claims located immediately to the
north and west of the four leases controlled by the Gahcho Kué Joint
Venture between De Beers Canada (51%) and Mountain Province (49%)
located in Canada's Northwest Territories.
A 5,000 meter drill program conducted during the winter of 2013 returned
an exceptional sample grade of 8.44 carats per tonne. The largest three
diamonds recovered were a 2.48 carat off-white transparent octahedral,
a 0.90 carat off-white transparent irregular, and a 0.75 carat
off-white transparent octahedral. The recovery of diamonds of this size
and quality from a 1.1 tonne sample is very encouraging.
Kennady Diamonds aims to identify a resource along the Kelvin - Faraday
kimberlite corridor of between 5 and 8 million tonnes, 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.
****
Qualified Person
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.
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.