Grassroots exploration drilling for new
kimberlite discoveries
Delineation and
geotechnical drilling on the Faraday kimberlites
Shares Issued and Outstanding: 51,912,599
TSX-V:
KDI
TORONTO, Feb. 5, 2018 /CNW/ - Kennady Diamonds Inc.
("Kennady", the "Company") (TSX-V: KDI) is pleased to announce that
its winter 2018 exploration program is underway. Roughly
10,500 meters of diamond drilling is planned, with 60% of the
drilling assigned to testing high-priority grassroots exploration
targets and 40% to delineation and geotechnical drilling on the
Faraday kimberlites. The program is planned to run at least
until mid-May, longer should ice conditions allow for safe
drilling.
President and CEO of Kennady Diamonds, Dr. Rory Moore commented: "We are looking forward to
resume our exploration and evaluation work on the Kennady North
Project. What is particularly exciting is that the majority of the
budgeted drilling is directed at high priority exploration targets
that we have waited to test for a number of years as evaluation
work on the Kelvin and Faraday kimberlites took priority." He
went on to say, "The delineation drilling program is designed to
prepare for the next phase of bulk sampling that will extend the
Faraday 2 resource along strike to the northwest, as well as
upgrade the northeast limb of the Faraday 1-3 complex from a Target
for Further Exploration (TFFE) to an Inferred
Resource."
Field crews were mobilized to open Kelvin Camp on January
29, 2018 and initiate construction of the ice
infrastructure. The ice infrastructure includes an ice airstrip, a
spur road linking Kelvin Camp to the
Gahcho Kuè spur road, and an ice road to the Faraday kimberlites.
Drill crews are scheduled to mobilize into Kelvin Camp today and it is anticipated that the
first of two core drills will commence drilling within the next
week, with the second following shortly thereafter.
Objectives of the winter 2018 program are summarized as follows:
-
- Grassroots exploration drilling to discover new kimberlites
will be focused within the Kelvin-Faraday Corridor. New targets,
immediately southwest of the Gahcho Kué Mine, will be tested
subsequently if time permits.
- Infill drilling between the two limbs of Faraday 1-3 to add
high-grade hypabyssal kimberlite to resource potential.
- Exploration drilling on Faraday 2 to further advance the NW
extension discovered in summer 2017.
- Delineation drilling on the northwest extension of Faraday 2 to
advance this portion of the pipe shell model to an inferred level
of confidence.
- Geotechnical drilling to advance the Faraday kimberlites from a
scoping-level to a pre-feasibility level of confidence.
Work will also resume on an environmental baseline study that
was initiated in 2017, as well as a new program to evaluate the
geochemical behavior of the kimberlites and associated country rock
that might be expected in a mining scenario.
Financing
Kennady has closed the first tranche of the
private placement of common shares announced in connection with the
transaction with Mountain Province Diamonds Inc. (see News Release
dated January 29, 2018). The
Company has issued 1,000,000 common shares at a price of
$2.50 per share for proceeds of
$2,500,000. The shares are subject to
a four month hold period, expiring June 3,
2018.
Proceeds of the offering will be used to fund the Company's 2018
winter exploration program on the Kennady North Project and for
general corporate purposes.
About Kennady Diamonds
Kennady Diamonds Inc. controls
100 percent of the Kennady North diamond project located in
Canada's Northwest Territories. Kennady North is
adjacent to the Gahcho Kué Diamond Mine, a joint venture between De
Beers Canada (51%) and Mountain
Province (49%). Kennady is focused on expanding its
high-grade diamond resources along the Kelvin–Faraday kimberlite
corridor, as well as identifying new kimberlites outside of the
corridor. To date an indicated resource of 13.62 million carats of
diamonds contained in 8.50 million tonnes of kimberlite, with a
grade of 1.60 carats per tonne and an average value of US$63 per carat has been defined for the Kelvin
kimberlite and an inferred resource of 5.02 million carats
contained in 3.27 million tonnes of kimberlite, with a grade of
1.54 carats per tonne and an average value of US$98 per carat has been defined for the Faraday
kimberlites using a 1mm diamond bottom cutoff size. The Kelvin –
Faraday corridor is also a target for further exploration.
Qualified Persons
This news release has been prepared
by Dr. Rory Moore, P.Geo., President
and CEO of Kennady Diamonds. The technical contents of this news
release have been reviewed and approved by Dr. Tom McCandless, P.Geo., an independent director
of Kennady Diamonds and 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.
SOURCE Kennady Diamonds Inc.